Industry guide
Business finance for agriculture
Farming income arrives once or twice a year while costs run every month. Finance for agriculture is mostly about matching repayments to harvest, shearing or the sale of stock.
Agricultural finance is lending structured around a single annual income event, using seasonal repayments, equipment finance for machinery and working capital that carries a farm from planting through to sale.
A cropping farm spends heavily on seed, fertiliser, fuel and chemical between autumn and spring, then receives most of its income within a few weeks of harvest. Livestock producers face the same shape with different timing. A monthly repayment schedule built for a suburban business simply does not fit that pattern, which is why agricultural lenders on our panel offer annual or seasonal repayment structures, deferred first payments and terms that line up with the production cycle rather than the calendar.
Machinery is the other constant. Tractors, headers, sprayers and irrigation infrastructure are expensive, long-lived and hold value well, which makes them good security. Many farms also carry the risk of a season going wrong, so lenders look at more than one year of accounts and consider land equity where it is available. Instant asset write-off and depreciation rules change from year to year, so we work with your accountant on timing rather than promising a tax outcome.
The cash-flow pattern we plan around
Costs spread across the growing season with income concentrated into a harvest, shearing or livestock sale window, sometimes only once a year.
What agriculture typically fund
- Tractors, headers and implements
- Irrigation and water infrastructure
- Seed, fertiliser and chemical before planting
- Livestock purchase and handling equipment
- Silos, sheds and on-farm storage
Documents lenders usually ask agriculture for
- ABN and land ownership or lease details
- Two years of tax returns and financials
- Machinery quote or livestock purchase details
Finance options for agriculture
Agricultural equipment finance for agriculture
Agricultural equipment finance is where the seasonal structures live. A header used for four weeks a year can be written over five to seven years with a single annual repayment timed a month after the crop is sold, so the machine is paid for out of the income it helped produce.
Chattel mortgage for agriculture
A chattel mortgage suits a farming business that intends to keep a machine for its full working life. You own the tractor or spray rig from settlement, claim the GST on the purchase in the relevant BAS, and depreciate the asset while deducting interest.
Equipment loan for agriculture
Not every farm purchase is a tractor. Silos, augers, cattle crushes, sheds and pumps are all financeable under a general equipment loan, often at smaller amounts and shorter terms.
Business line of credit for agriculture
Input costs for a cropping season land months before income does. A line of credit lets a farm draw for fertiliser and chemical at planting, add fuel and contractor costs through the season, then clear the balance after the crop is sold.
Secured business loan for agriculture
Where a farm carries land equity, a secured business loan is generally the cheapest money available for a larger purpose — buying an adjoining paddock, building storage, or consolidating a mix of machinery debts onto one longer term. Rates sit well below unsecured lending because the property backs the facility.
Commercial property loan for agriculture
Buying additional farmland, a set of silos with an access agreement, or a commercial shed on a nearby industrial block usually falls under a commercial property loan rather than a residential one. Deposits are larger than for a house — often 30% or more on rural land — and lenders assess the income the property will generate alongside the farm accounts.
Assets we finance for agriculture
Lenders active in this space
Metro Finance, Macquarie, NAB, Flexicommercial — among others on our panel of 18+. Your broker checks fit before anything is submitted.
Key terms
Agricultural equipment finance
Agricultural equipment finance is secured lending for farm machinery such as tractors, headers, sprayers and irrigation systems, commonly written over three to seven years with annual or seasonal repayments aligned to harvest income.
Seasonal repayment structure
A seasonal repayment structure is a loan schedule where repayments fall due when farm income arrives — annually after harvest or in set months — rather than in equal monthly instalments.