By the Loan Phone team Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking
Agricultural machinery finance provides Australian farmers and agricultural businesses with funding for tractors, harvesters, irrigation systems, and farm equipment without depleting working capital. Rates typically range from 7-14% p.a. depending on farm profile and machinery type (indicative only), with loan amounts from $10,000 to $2 million+ and terms from 1-7 years.
Most lenders require farms with active ABNs and a minimum of 12-24 months trading history, though specialist agricultural finance providers may consider newer operations. Modern comparison platforms allow efficient evaluation of options from 100+ lenders.
| Farm Profile | Indicative Rate | Typical Term | Common Machinery |
|---|---|---|---|
| Established (2+ years) | 7-10% p.a. | 3-7 years | Tractors, harvesters, irrigation |
| Standard (1-2 years) | 10-12% p.a. | 3-5 years | Standard farm & utility machinery |
| Newer/Developing | 12-14%+ p.a. | 1-3 years | Essential & used machinery |
Rates are indicative examples only. Actual rates depend on individual farm circumstances and lender assessment.
📄 Navigation Guide
- → Machinery Commonly Financed
- → Finance Structures for Agricultural Operations
- → Government-Backed Low-Interest Programs
- → Rates and Terms
- → Eligibility for Agricultural Operations
- → Benefits for Agricultural Businesses
- → Application Process
- → Frequently Asked Questions
- → Finance Your Agricultural Machinery
Machinery Commonly Financed
- Tractors and Power Equipment: Row crop, utility, and specialty tractors with attachments.
- Harvesting Equipment: Combine harvesters, headers, cotton pickers, and grain carts.
- Planting and Seeding: Seed drills, precision planters, spreaders, and sprayers.
- Irrigation Systems: Centre pivot, drip irrigation, pumps, and water management.
- Livestock Equipment: Handling systems, feeders, dairy equipment, and shearing tools.
- Processing and Storage: Grain silos, hay balers, and cool rooms.
For more information, see our machinery finance Australia guide.
Finance Structures for Agricultural Operations
- Chattel Mortgage: The farm owns the machinery from day one, claiming tax benefits like depreciation and GST. This is the most popular structure in agriculture. Learn about chattel mortgage structures.
- Commercial Hire Purchase: Ownership transfers at the end of the term, offering flexibility.
- Equipment Lease: The lender retains ownership, suitable for equipment with a high rate of technological change.
- Seasonal Payments: Specialist lenders can structure repayments to align with harvest cycles and seasonal income.
Government-Backed Low-Interest Programs
In addition to commercial finance, Australian farmers can access government-backed concessional loans that offer significantly lower interest rates for eligible projects.
- Regional Investment Corporation (RIC): Offers farm investment loans up to $2 million at highly competitive rates (e.g., 5.18% p.a. as of 2025, variable) with 10-year terms and interest-only periods. These can be used for machinery that improves farm productivity. Learn more at the official RIC website.
- Clean Energy Finance Corporation (CEFC): Provides interest rate discounts (up to 1.15% p.a.) through major banks for financing equipment that reduces emissions or promotes sustainable farming. Learn more at the official CEFC website.
These programs can offer substantial savings for farms meeting the specific eligibility criteria.
Rates and Terms
- Indicative Commercial Rates: 7-10% p.a. for established farms, 10-12% p.a. for standard operations, and 12-14%+ p.a. for newer farms.
- Common Terms: 3-5 years for standard machinery, and up to 7 years for major harvesters and irrigation systems.
- Loan Amounts: $10,000 to over $2 million.
Eligibility for Agricultural Operations
Lenders typically require an active ABN, a trading history of at least 12-24 months, and a clear credit history. Specialist agricultural lenders are crucial as they understand seasonal cash flow patterns and can assess revenue accordingly, whereas traditional banks may be less flexible.
Benefits for Agricultural Businesses
- Preserve Working Capital: Finance machinery without depleting cash needed for seasonal inputs like seed, fertilizer, and fuel.
- Tax-Effective Structures: Claim deductions for interest and depreciation (always consult your accountant).
- Seasonal Payment Flexibility: Align repayments with harvest income cycles.
- Improve Farm Productivity: Access modern, efficient machinery to boost yields and reduce labour costs.
Application Process
Instead of approaching multiple lenders individually, a modern comparison platform allows you to submit a single application to a panel of over 100 lenders, including agricultural specialists. This streamlines the process, ensuring you receive competitive offers from lenders who understand the unique financial cycles of farming operations.
Frequently Asked Questions
Can I finance used agricultural machinery? Yes, most lenders finance used equipment, though age restrictions (often 10-15 years) and higher interest rates may apply compared to new machinery.
Do lenders understand seasonal farm cash flow? Specialist agricultural lenders do and can structure repayments to match your income cycle, offering lower payments during off-seasons and higher payments post-harvest.
Can newer farms get machinery finance? Yes, though options may be more limited. Specialist lenders will consider newer farms, especially if the operators have relevant experience. A deposit of 20-30% may be required.
Are there government programs for farm machinery finance? Yes, the Regional Investment Corporation (RIC) and Clean Energy Finance Corporation (CEFC) offer low-interest loans and rate discounts for eligible farmers. See our section on Government-Backed Programs for details.
Finance Your Agricultural Machinery
Ready to upgrade your farm equipment? Loan Phone provides access to over 100 lenders, including agricultural finance specialists who understand the unique needs of your business.
Speak with Specialists
Need expert guidance on your agricultural machinery application?
Email: loans@loanphone.com.au Website: www.loanphone.com.au
Related Resources
Explore these related guides to learn more about asset financing options:
Disclaimer: This article provides general information only and should not be relied upon as financial or tax advice. Rates, terms, and eligibility vary by lender and individual circumstances. Tax benefits are subject to your specific farm structure and circumstances. Always seek independent professional advice from a qualified accountant and financial adviser before making financing decisions.
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Last updated: October 17, 2025