agriculture · Equipment & asset finance
Irrigation equipment finance
Irrigation is infrastructure, not machinery. We look at lenders who fund the whole installation and set a term that matches a twenty-year asset.
What is irrigation equipment finance?
Irrigation equipment finance is funding for centre pivots, laterals, pumps, mainline and drip systems, secured against the equipment or supported by the underlying farm business. Irrigation is a long-life investment that directly lifts yield, and Australian lenders will often fund the installation as well as the hardware.
Irrigation changes the economics of a farm. Moving from dryland to irrigated production, or from flood to a pivot or drip system, lifts yield and reliability and reduces water use per tonne produced. In Australia, where water is the binding constraint on most farms, efficiency improvements often pay back faster than any other capital investment on the property. Reliable water also makes income far less volatile, which matters when you are servicing debt across a dry year.
The financing is more nuanced than for a tractor. A centre pivot is a movable asset and can be secured like equipment, but buried mainline, earthworks and power upgrades cannot. In practice a project is often split: the equipment financed as equipment, the civil works funded through a secured business loan or against property. Progress payments to the installer can usually be arranged so the system is funded as it is built.
Irrigation equipment finance at a glance
| Typical price range | $30,000 – $900,000 |
|---|---|
| Finance term | Up to 84 months |
| Useful life | About 20 years |
| New or used | New systems are the norm because installation and warranty matter; used pivots are traded but relocation and refurbishment costs often close the price gap. |
| Indicative rates (Agricultural equipment finance) | 6.7% – 14% p.a. · rate history |
| Finance structures | Agricultural equipment finance (recommended), Chattel mortgage, Equipment loan |
How lenders assess irrigation equipment finance
Irrigation sits awkwardly between equipment and fixture, so lender treatment varies. Movable assets such as pivots, pumps and laterals are readily financed as equipment. Buried mainline and earthworks are harder to secure and may need to be funded through a secured business loan or against property instead. Progress payments to the installer can usually be arranged. Seasonal repayments are commonly available. Water entitlement purchases are treated separately and are not equipment finance — your broker will explain the alternatives.
Before you buy
- Have the system designed around your water entitlement and pumping capacity, not just paddock shape, before you price it.
- Get the electrical supply and pump station scoped early; power upgrades are often the largest unexpected cost.
- Ask the supplier to separate movable equipment from civil works on the quote, since the two are financed differently.
Commonly financed
Valley centre pivots · Zimmatic by Lindsay pivots · Reinke lateral move systems · Grundfos and Southern Cross pumps · Netafim drip irrigation
Estimate irrigation equipment repayments
- Number of repayments
- 60
- Balloon at end of term
- $93,000
- Total interest (est.)
- $126,995
- Total repaid (est.)
- $591,995
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is irrigation equipment finance?
Irrigation equipment finance is funding used to buy and install irrigation infrastructure such as pivots, laterals, pumps and drip systems. Movable equipment is generally secured against the asset, while civil works and buried infrastructure are usually funded through a secured business loan.
Can water entitlements be financed?
Water entitlements are a separate class of asset and are not funded as equipment finance. They are generally financed through a secured business loan or against rural property, and lenders assess entitlement type, reliability and the market for that water source.