Agricultural Equipment Finance

We finance all farm machinery and agricultural equipment including tractors (from small compact tractors to large 4WD), harvesters (headers, combines, cotton pickers, cane harvesters, forage harvesters), seeding and planting equipment (air seeders, planters, box drills), spraying equipment (boom sprayers, airblast sprayers), irrigation systems (centre pivots, drip irrigation, pumps), hay and silage equipment (balers, mowers, rakes, wrappers), livestock handling equipment (yards, crushes, scales), grain storage (silos, augers, dryers), farm vehicles (utes, side-by-sides, farm trucks), specialized equipment (grape harvesters, nut shakers, orchard equipment), dairy equipment (milking systems, vats, cooling), and precision agriculture technology (GPS, drones, sensors, yield monitors). Loan amounts range from $10,000 for small equipment to $2 million+ for large harvesting packages.

Seasonal repayments are structured payment schedules that match your farm income patterns, particularly useful for grain, cotton, sugar, and other seasonal crops. Instead of equal monthly payments, you make larger payments after harvest when cash flow is strong, and smaller (or nil) payments during the growing season. For example, a grain farmer might pay $15,000/month in the 4 months post-harvest (March-June) and $3,000/month for the remaining 8 months. The total annual repayment is the same as a standard loan, but the timing matches your income. Most agri-specialist lenders offer seasonal structures for farmers with 2+ years trading history showing clear seasonal patterns. This prevents cash flow stress during planting and growing periods when farm expenses are high but income is low.

Yes, specialist agricultural lenders offer drought provisions and payment deferrals for farmers experiencing difficult seasons. If you're in a declared drought area or experiencing severe seasonal challenges, most agri-lenders will work with you to defer or reduce payments temporarily. This might include: interest-only repayments for 6-12 months, full payment deferrals for 3-6 months (interest capitalized), or loan term extensions to reduce monthly payments. These provisions are typically available to farmers with good repayment history who are experiencing temporary hardship beyond their control. You'll need to demonstrate the drought impact, provide updated farm financials, and work with your lender to restructure the loan. Having this flexibility built into farm equipment finance is crucial for managing seasonal and climate variability.

This depends on your farm size, budget, and equipment usage intensity. New machinery offers latest technology (GPS, precision agriculture), full warranties (typically 2-3 years), better fuel efficiency, and easier finance approval (lower rates 6-9% p.a. and deposits 10-20%). Used equipment can save 30-50% compared to new and is excellent for smaller farms or equipment used infrequently. However, used machinery has risks: limited or no warranties, potential breakdowns during critical harvest periods, higher maintenance costs, and harder to finance (expect 25-35% deposits and rates 8-12% p.a.). For critical equipment (primary tractor, header), new is often recommended. For secondary equipment (hay balers, older tractors for lighter work), used offers great value. Well-maintained used equipment from reputable dealers with service history can be excellent value.

Agricultural equipment finance rates typically range from 6% to 12% p.a. for established farmers. New machinery from authorized agricultural dealers attracts the best rates (6-9% p.a.), while used or older equipment is higher (8-12% p.a.). Your rate depends on: farm trading history (established farms with consistent production get better rates), rainfall reliability and drought history of your region, deposit size (20%+ is ideal), equipment type and age, and whether you use seasonal repayments (may be slightly higher). Startup farmers or those purchasing their first farm can expect 9-13% p.a. even with decent deposits. We work with specialist agri-finance lenders including Rural Bank, Rabobank, and regional agricultural lenders who understand farming economics and price accordingly.

Yes, though approval is more challenging and requires stronger financials. Young farmer programs exist specifically to help new entrants. You'll typically need: (1) relevant agricultural qualifications or substantial farm work experience, (2) 25-40% deposit (can include family assistance or vendor finance for part), (3) secured land (owned or long-term lease), (4) solid farm business plan showing realistic production and income projections, (5) good personal credit, and (6) potentially family guarantees for larger equipment. Some lenders offer young farmer packages with mentorship programs and flexible structures. Equipment under $100,000 is easier to approve than headers or large machinery. Start with essential equipment (tractor, basic implements) and build your track record before financing expensive harvesters. Rates typically 9-14% p.a. for young farmers.

Yes, if you meet eligibility criteria. Primary producers (farmers) can claim instant asset write-off for eligible depreciating assets under the current threshold (check ATO as thresholds change). This allows you to immediately deduct the full cost of equipment in the year of purchase rather than depreciating it over several years. For example, if you buy a $15,000 seeder and qualify for instant asset write-off, you can claim the full $15,000 as a tax deduction in the same financial year. This provides substantial tax savings for farmers. For equipment above the instant asset write-off threshold, you can still claim depreciation over the asset's effective life (varies by equipment type — tractors typically 7.5 years, headers 12.5 years). Additionally, you claim all interest payments as tax deductions with Chattel Mortgage structures. Always consult your accountant for specific advice on your farm's tax position.

Deposit requirements vary by farm type and equipment. Established farms with 3+ years consistent production typically need 15-25% deposit for new equipment and 25-35% for used. Startup farmers or those in drought-affected areas usually need 30-40% deposit even for new equipment. High-value machinery ($500k+ headers, large tractors) may require 25-35% deposit regardless of farm establishment. However, farms with excellent trading history, low debt, and strong equity can sometimes access 10-20% deposits or even 100% finance for new equipment. If you're trading in old machinery, the trade-in value counts toward your deposit. Some agricultural equipment dealers offer vendor finance for part of the purchase, effectively reducing required cash deposit. Larger deposits always result in better interest rates.