Farm Equipment Loans

Equipment breaks down right when you need it most. Harvest doesn’t wait, livestock still need feeding, and that tractor repair bill just wiped out your working capital budget.

Seasonal income is a tricky element in farming, and most banks don’t understand how it works. They see three quiet months followed by harvest revenue and treat it like a red flag.

Selectabroker connects you with agricultural finance specialists who actually understand your industry, helping you navigate a farm equipment loan expertly. These are brokers who know the difference between a header and a harvester, and more importantly, know which lenders work with farming cash flow cycles.

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What is a Farm Equipment Loan?

Farming equipment loans, or agriculture equipment financing, let you spread the cost of essential machinery over time instead of paying everything up front. Your equipment becomes the security for the loan, which means you’re not usually tying up additional collateral like property.

The real benefit? Preserving your working capital for operational costs: fuel, wages, feed, seed, and those unexpected expenses that always seem to pop up.

Key features of farming equipment loan:

Equipment acts as loan security (no extra collateral needed in most cases)
Keep cash available for day-to-day running costs
Access to newer, more efficient machinery without depleting reserves
Loan terms typically range from 1 to 7 years
Finance available for both new and used equipment

Whether you’re looking at a $15,000 spray unit or a $500,000 header, agriculture equipment financing can help you acquire what you need without compromising your cash position.

Types of Farm Equipment You Can Finance

One of the first questions we hear is, "Can I actually finance this?" The answer is usually yes. Agricultural equipment finance covers a surprisingly broad range of machinery and infrastructure.

Broadacre & Cropping

Tractors and headers
Chaser bins, augers, and field bins
Seeders, planters, and air drills
Sprayers (boom sprayers, spot sprayers)
Tillage equipment (cultivators, ploughs, disc chains)
GPS and precision agriculture systems

Livestock

Yards and livestock handling systems
Feed mixers and automatic feeding units
Milk vats and dairy machinery
Animal health monitoring systems

Horticulture & Viticulture

Fruit picking equipment
Sorting, grading, and packing machinery
Grape harvesters
Processing and bottling equipment

General Farm Infrastructure

Irrigation systems and pumps
On-farm grain storage and silos
Farm vehicles (4WDs, ATVs, UTVs, utes)
Trucks and trailers
Earthmoving equipment (loaders, excavators)
Solar panels and renewable energy systems
Water monitoring equipment
Fencing equipment

If you're running a hobby farm loan operation or need rural home loans alongside your equipment finance, specialist brokers can package these together for better overall terms.

Types of Agricultural Equipment Finance

Choosing the right farming equipment loan structure matters. Each option has different ownership, tax, and cash flow implications.

Chattel Mortgage

You own the equipment from day one. The equipment secures the loan, and you make regular repayments plus interest.

Benefits:

Claim GST upfront on your next BAS (if GST-registered)
Claim depreciation deductions each year
Claim interest as a tax deduction
Full ownership means you can modify or sell equipment

Best for: GST-registered farms wanting immediate ownership and maximum tax benefits.

Finance Lease

The lender owns the equipment during the lease term. You make fixed payments and have options at the end: purchase it, return it, or refinance for a new lease.

Benefits:

No large upfront capital outlay
Fixed payments help with budgeting
Lease payments may be fully tax-deductible
Return option if the equipment becomes obsolete

Best for: Preserving working capital or farmers who prefer flexibility.

Commercial Hire Purchase

The lender purchases the equipment on your behalf. You hire it with fixed monthly payments, and ownership transfers automatically after the final payment.

Benefits:

Gradual path to ownership
Similar tax treatment to a chattel mortgage
Fixed payments for budget certainty
No balloon payment required

Best for: Farmers who want ownership over time without paying GST upfront.

Operating Lease (Rent-to-Own)

Essentially, a rental arrangement with a purchase option, where the equipment stays off your balance sheet.

Benefits:

Return equipment at lease end with no residual obligation
Payments may be tax-deductible
Useful for seasonal or short-term needs
Easier to upgrade to newer technology

Best for: Short-term requirements or seasonal operations.

Feature	Chattel Mortgage	Finance Lease	Hire Purchase	Operating Lease
Ownership	Immediate	At end (optional)	After final payment	No
GST Claim	Upfront	No	No	No
On Balance Sheet	Yes	Yes	Yes	No
Deposit Required	Optional	No	Optional	No
Tax Benefit	Depreciation + Interest	Payments deductible	Depreciation + Interest	Payments deductible
Best For	GST-registered farms	Cash flow preservation	Gradual ownership	Short-term / seasonal

Seasonal Repayment Options: Finance That Works with Your Cash Flow

Standard monthly repayments don’t suit farming income cycles. A grain farmer might have minimal income from March to October, then receive most of their annual revenue at harvest. Paying the same amount every month doesn’t make sense.

Specialist lenders in agriculture equipment financing offer flexible repayment structures with seasonal payment plans:

Lower payments during off-season ($500-$800/month)
Larger payments post-harvest when cash flows ($3,000-$5,000/month)
Annual lump sum options aligned to your main income event
Quarterly payments matching BAS or livestock sale periods

There’s also the option of balloon payments, where a larger payment at the end reduces your monthly burden throughout the term. This can significantly lower your regular payments, freeing up cash for operations.

For example, a $100,000 farm equipment loan with a 30% balloon payment might see monthly payments of $1,500 instead of $2,000. At the end of the term, you pay the $30,000 balloon – ideally after a strong harvest season.

Tax Benefits of Farm Equipment Finance

Instant Asset Write-Off (2025-26)

The instant asset write-off threshold is currently $20,000 per asset for eligible businesses (extended to 30 June 2026). If your turnover is under $10 million, you can immediately deduct the full cost of eligible assets under this threshold.

Key requirements:

Asset must be purchased and installed, ready for use
Applies to both new and second-hand equipment
You can claim multiple assets under the threshold
Assets over $20,000 go into the small business depreciation pool (15% in year one, 30% thereafter)

Primary Producer Specific Deductions

Farmers get access to specific immediate deductions for:

Fodder storage assets (full immediate deduction)
Water facilities, including bores, irrigation systems, tanks, and dams
Fencing assets (full immediate deduction for business fencing)
Interest deductions on chattel mortgages and hire purchase agreements
Standard depreciation claims on equipment

Always speak with your accountant to maximise these benefits. The right financing structure combined with proper tax planning can significantly reduce your net cost.

Interest Rates and Loan Amounts

Agricultural equipment finance rates and terms vary based on several factors:

Factor	Typical Range
Interest Rates	4%-10% p.a. (varies by lender, credit profile, equipment)
Loan Amounts	$10,000-$1M+
Loan Terms	1-7 years
Equipment Age	Up to 20 years old at the end of the term (varies by lender)
Approval Time	24-48 hours (many same-day)

What Affects Your Rate

Your credit history and time in business
Equipment type and age (new equipment typically gets better rates)
Loan amount and term length
Deposit provided (if any)
Full documentation vs low documentation application

Low Doc & No Doc Farm Equipment Finance

Not everyone has perfect financials sitting ready to go. Recent droughts, natural disasters, or simply the nature of seasonal income can make traditional documentation difficult.

Low doc farm equipment loan options are available for:

Seasonal income that’s difficult to document traditionally
Farmers recovering from drought or disaster
New farmers or start-up operations
Businesses with pending or incomplete financials

Typical requirements:

Low doc loans up to $500,000 without full financials
No deposit required up to $175,000 with some lenders
Deposits of 10-20% for larger amounts
BAS statements or an accountant’s letter
Bank statements showing cash flow patterns
Three months’ operating expenses in savings (some lenders)

Equipment age matters. Most lenders require equipment to be no older than 20 years at the end of the loan term. For example, on a 5-year loan, equipment should be 15 years old or less at purchase. Older equipment is assessed case-by-case.

Why Use a Farm Equipment Finance Broker?

You could approach lenders directly. But here’s what you’d be missing:

Access to specialist lenders: Brokers work with 25-80+ lenders, including agricultural specialists you won’t find at your local bank branch. These lenders understand farming income and offer the seasonal repayment structures you actually need.
Time savings: Instead of making 10 different applications, your broker submits one application and shops it to multiple lenders.
Industry knowledge: Agricultural finance brokers know which lenders accept low doc applications, which ones have the best rates for used equipment, and which ones actually understand seasonal cash flow.
No cost to you: Brokers are paid by the lender who wins your business. You get expert advice and free comparison shopping.

How Selectabroker Helps You Finance Farm Equipment

Our process is straightforward:

Tell us about your equipment needs – what you’re buying, approximate amount, and your situation
We match you with specialist agricultural brokers – not generalists, but brokers who work specifically in farming equipment loan scenarios
Your broker assesses options – they review your situation and identify the best lenders and structures
Compare offers – review multiple options side-by-side
Choose your structure – pick the repayment plan that fits your cash flow
Get approved – often within 24-48 hours
Equipment funded – get back to farming

This service is completely free. There’s no obligation to proceed if the options don’t suit you. And you’re working with specialists who understand agriculture inside out.

Buying New vs Used Farm Equipment

New Equipment Benefits

- Latest technology and efficiency features
- Full manufacturer warranty coverage
- Better fuel efficiency reduces operating costs
- Higher resale value when you upgrade
- Usually lower interest rates from lenders

Used Equipment Benefits

- Lower purchase price means a smaller loan
- Proven reliability with known models
- All the same finance options are available
- May have slightly higher interest rates
- Equipment age limits apply (check with your lender)

Where to source used equipment:

- Authorised dealers with warranty options
- Farm clearing sales and auctions
- Private vendors (most lenders don't require formal valuations for known brands)

Tips for Financing Farm Equipment

Plan around your cash flow: If your income varies seasonally, request seasonal repayments upfront. Don't lock yourself into standard monthly payments that strain your budget.
Get pre-approval first: Know your budget before you start shopping for equipment. This strengthens your negotiating position with sellers.
Consider your timing: End of financial year can offer tax benefits. Post-harvest timing means clearer finances and stronger applications.
Match finance type to your situation: GST-registered and want immediate tax benefits? Chattel mortgage. Need flexibility? Consider a lease. Talk through the options with your broker.
Involve your accountant: They can help structure your finances to maximise your tax position and ensure it aligns with your overall business strategy.
Borrow what you can comfortably repay: That header might increase productivity by 30%, but only if you can afford the repayments without jeopardising operations.
Think long-term: Will this equipment serve you for years? Can it adapt to your evolving operations? Don't just solve today's problem at the expense of tomorrow's needs.

Just a few of our happy customers

Trusted by 1000's of Australians

When we found you guys we thought we had no hope. 3 Banks said no, and you were able find the right home for us. How you guys work for free amazes us

David & Clare

Castlemaine, Vic

The extensive documentation required seemed daunting, but Select a Mortgage Broker helped me organise everything efficiently. The process was smooth and stress-free

Mia

Surry Hills, NSW

Being self-employed, I was concerned about proving stable income, but Select a Mortgage Broker worked with me to find the best loan option. Their dedication finding me the right loan was exceptional! Highly recommend.

Jimmy K.

Busselton, WA

Farm Equipment Loan FAQs

Can I finance used farm equipment?

Yes. Both new and used equipment qualify for farming equipment loan options, including chattel mortgage, lease, and hire purchase. Most lenders require equipment to be no older than 20 years at the end of your loan term.

Do I need a deposit for agricultural equipment finance?

Not always. Many lenders offer no-deposit finance for loans up to $175,000. Larger amounts may require 10-20% deposit depending on your financial position and the equipment being purchased.

What interest rates should I expect?

Rates typically range from 4% to 10% per annum, depending on your credit profile, equipment type and age, loan amount, and whether you choose full or low documentation finance.

Can I get finance with seasonal income?

Absolutely. Specialist agricultural lenders understand farming cash flow and offer seasonal repayment structures aligned with harvest or livestock income cycles. This is rarely available through standard banks.

What's the difference between a chattel mortgage and a finance lease?

With a chattel mortgage, you own the equipment immediately and can claim GST upfront if you’re registered. With a finance lease, the lender owns it during the lease term, and you have options at the end. Lease payments are typically tax-deductible as operational expenses.

How quickly can I get approved?

Many agricultural finance brokers can arrange pre-approval within 24-48 hours for amounts up to $500,000. This speed matters when you need equipment for time-sensitive operations.

Not sure which loan type is right for you?

Connect with Craig and he can guide you through the various loans and help you work out which is going to be the best fit.

Farm Equipment Loans

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What is a Farm Equipment Loan?