Farm Equipment Financing

Farm equipment financing is secured by the machine and, unlike most equipment financing, is often repaid annually or semi-annually after harvest instead of monthly. Terms run 2–7 years with 10–20% down, often covered by a trade-in, and rates fall in the same 6–22% APR range as other equipment, with established operations at the low end. A new combine costs roughly $450K–$1.1M before the header, and a row-crop tractor $250K–$600K.

Typical 2026 pricing. A combine header is priced and financed separately in most transactions and often adds $60K–$200K depending on type and width.

Illustrative level payments on the amount financed. Annual and semi-annual schedules show the payment due each period.

A grain farm is paid a few times a year, not every month, and farm equipment financing is built around that. Annual payments due after harvest, or semi-annual payments timed to crop sales, are standard, with the first payment set for when the machine has earned its first season. Livestock and dairy operations with monthly milk or sales checks usually take monthly payments. Interest accrues between payments either way, so an annual schedule costs slightly more than monthly on the same balance.

For machine-specific prices and payment examples, see tractor financing and combine financing.

Farm lenders read a different set of documents than commercial equipment lenders:

• Farm tax returns (Schedule F) for two to three years
• A balance sheet showing land, equipment, stored grain and livestock against debts
• Crop insurance coverage and production history
• Existing operating lines and equipment payments
• Off-farm income, where it supports the household

Land equity and a long operating history carry a lot of weight. Beginning farmers who cannot yet meet commercial requirements should also look at USDA Farm Service Agency programs, which are slower but built for that situation.

Manufacturer finance programs often advertise very low or 0% rates on new equipment. They are real, but they usually come instead of a cash rebate or discount, apply only to new machines from that brand, and assume full program pricing. Compare the promotional rate against financing independently and taking the rebate: on a large machine, the rebate is sometimes worth more than the rate difference.

Independent financing also covers what promotional programs do not: used equipment, auction and private-party purchases, and mixed-brand fleets.

Used farm equipment is financed routinely. Hours, service records and condition set the value, and larger machines may need an inspection. Farm machinery is generally untitled, so the lender relies on a bill of sale and its UCC filing, runs a lien search, and pays the seller directly, paying off any existing lien. For an auction, get pre-approved before sale day, since auction terms usually require payment within days.

Most farm equipment deals include a trade. Equity in the trade-in (its value minus any payoff) usually covers the 10–20% down payment. If the trade still has a balance, the payoff is handled at closing and rolled into the new deal where the numbers support it.

Financed farm equipment qualifies for Section 179 like a cash purchase, up to $2,560,000 for tax years beginning in 2026, when placed in service by December 31. A fall purchase timed for the tax year needs the financing approved before delivery. Confirm the treatment with your CPA.

For seed, fertilizer and labor between harvests, a revolving business line of credit usually fits better than stretching an equipment payment; see seasonal business financing for the options. To finance the machine, apply once at equipment financing and we will compare offers across 100+ funding partners.