Equipment Financing for Agriculture
That tractor costs $125,000 but would expand your acreage capacity by 800 acres. A newer combine runs $350,000 but would cut harvest time in half. Equipment financing preserves the working capital you need for inputs and operating costs while building the equipment fleet your operation requires.
How much funding do you need?
Drag the slider or type an amount
Farm Equipment Economics
Farm equipment represents significant investment but directly impacts acreage capacity, operational efficiency, and harvest timing. Smart equipment decisions shape farm profitability.
Equipment Cost Reality
Mid-size tractor: $75,000-$200,000. Combine: $200,000-$500,000+. Implements: $10,000-$100,000 each. Quality equipment requires substantial investment that most operations cannot make from cash.
Useful Life Advantage
Quality farm equipment lasts 20-30 years with proper maintenance. Financing over 7 years on equipment that lasts 25 years creates substantial value and manageable payments.
Section 179 Benefits
Farm equipment qualifies for Section 179 deduction. Financed equipment qualifies the same as cash-purchased equipment. Significant tax advantages available.
Capacity Multiplication
Equipment directly enables acreage. A $150,000 tractor might enable 800+ additional acres annually. ROI on equipment can be substantial.
The Farm Equipment Challenge
Farm equipment requires significant investment. Financing preserves operating capital for inputs and operations.
Cash vs. Equipment Needs
Purchasing a $150,000 tractor outright depletes operating capital needed for seed, fertilizer, and inputs.
Capacity Constraints
Current equipment limits the acreage you can effectively farm. Additional equipment enables expansion and more revenue.
Equipment Aging
Older equipment breaks during critical planting and harvest windows. Downtime during critical seasons costs yields and revenue.
Harvest Timing
Combine capacity affects harvest window. Getting behind on harvest costs yields and quality. Additional capacity means faster harvest.
Opportunity Cost
Equipment available at favorable pricing or auction. Cash purchase means depleting capital for future operations.
Multi-Equipment Needs
Operation needs tractor, implements, and truck. Purchasing all from cash is impractical.
Farm Equipment Financing Process
Get equipment financed efficiently while preserving operating capital.
Application
Complete application with farm information and equipment details.
15 minutes
Documentation
Provide bank statements, production records, and equipment information (dealer quote or seller details).
Gather documents
Evaluation
We evaluate farm revenue, production history, credit, and equipment value.
3-10 days
Funding
Accept terms. Payment sent to dealer or seller. Equipment is yours.
1-3 days after approval
Finance Equipment, Preserve Working Capital
Equipment financing structures payments across equipment useful life while keeping working capital available for inputs and operations. The equipment itself secures the financing, enabling approval even when unsecured financing would not be available.
100% Financing Available
Finance the full equipment cost for qualified operations. No large down payment required. Preserve cash for inputs.
Terms to 84 Months
Spread payments across equipment useful life. 7-year terms match typical farm equipment longevity and create manageable payments.
Equipment as Collateral
The farm equipment secures the financing. No need to pledge additional assets, land, or personal guarantees beyond standard.
New and Used
Finance brand new equipment from dealers or quality used equipment from auctions, dealers, or private sellers.
Tax Benefits
Financed equipment qualifies for Section 179 deduction. Depreciation and interest deduction available.
Agriculture Understanding
We evaluate farms based on production and revenue, understanding seasonal patterns and agricultural economics.
Farm Equipment Financing Scenarios
Common equipment financing applications for agricultural operations.
Tractors
Utility, row crop, and 4WD tractors for field operations and heavy work.
Typical funding: $50K-$250K
Combines
Combines and headers for efficient harvest. Capacity that matches operation size.
Typical funding: $150K-$500K
Implements
Planters, sprayers, tillage equipment, drills, and implements for production.
Typical funding: $25K-$150K
Trucks & Trailers
Farm trucks, semis, grain trailers, and transport equipment.
Typical funding: $50K-$150K
Used Equipment
Quality used equipment at favorable pricing from auctions, dealers, or private sales.
Typical funding: $25K-$200K
Irrigation
Pivots, pumps, and irrigation equipment for water management.
Typical funding: $50K-$200K
Equipment Financing vs. Alternatives
Understanding when equipment financing makes sense versus alternatives.
| Feature | Equipment Financing | Cash Purchase | Long-Term Rental |
|---|---|---|---|
| Cash Required | 0-10% down | 100% | Monthly rental |
| Ownership | At term end | Immediate | Never |
| Working Capital Impact | Preserved | Depleted | Ongoing cost |
| Total Long-Term Cost | Moderate | Lowest if cash available | Highest |
| Tax Benefits | Section 179 + interest | Section 179 only | Expense deduction |
| Equipment Choice | Any | Any | Limited availability |
| Term Flexibility | 12-84 months | N/A | Annual typically |
| Equity Building | Yes | Yes | No |
Farm Equipment Financing Requirements
What qualifies farms for equipment financing.
Business History
Established farming operation with production track record.
2+ years preferred
Owner Credit
Owner credit reviewed as part of evaluation. Higher scores access better rates.
600+ for most approvals
Revenue History
Demonstrated farm revenue sufficient to support payment amounts.
Supports payment level
Equipment Type
Standard farm equipment from recognized manufacturers with established resale value.
Mainstream equipment
Production Records
Documented crop yields or livestock production demonstrating operational capability.
2+ years history
Equipment Value
Equipment being financed must have sufficient value relative to financing amount.
Reasonable LTV
Equipment financing decisions weight equipment value heavily. The collateral enables approval for farms that might not qualify for unsecured financing.
Real Results
Prairie View Farms
Row Crop Operation, Iowa
The Challenge
Prairie View needed a newer tractor ($145,000) to expand acreage and replace aging equipment that was breaking down during critical seasons. Cash was committed to inputs and operating costs for the growing season.
The Solution
We financed $145,000 over 72 months with the tractor as collateral. Monthly payments of approximately $2,400 were easily supported by additional acreage revenue.
The Result
Acreage expanded 25% (600+ acres). Additional revenue from expanded acreage easily covered financing payments. Old tractor sold for $25,000. Tractor still working strong years later with years of useful life remaining.
“Cash was committed to seed and fertilizer. Financing let us expand acreage without jeopardizing the growing season. The additional acres pay for the tractor and then some.”
Farm Equipment Data
Statistics on agricultural equipment and financing.
Farm Equipment Financing Advantages
Why equipment financing makes sense for agricultural operations.
Capacity Expansion
New equipment enables more acreage and more revenue. Growth without depleting operating capital.
Operating Capital Preserved
Keep cash available for seed, fertilizer, fuel, and seasonal operations.
Tax Benefits
Section 179 deduction on financed equipment plus interest deduction. Significant tax advantages.
Predictable Payments
Fixed monthly payments replace large capital outlays. Budget with certainty.
Flexible Equipment Choice
Finance new from dealers or used from auctions, private sales, or other sources.
Build Equity
Payments build ownership in equipment. At term end, asset is yours with substantial remaining value.