Farm Equipment Financing

Farm equipment financing is secured by the machinery 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 16–24 row planter costs roughly $150K–$400K, a tillage tool $70K–$200K and a round baler $55K–$100K, and many operations finance several implements together on one schedule.

Typical 2026 dealer and auction pricing. Width, row count, options and region move the number; lenders size the deal from your written quote, not from a table.

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 equipment 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.

This page covers the rest of the farm: the implements and the operation as a whole.

• Planting: planters, air drills and seed carts, including precision upgrades such as row-unit drives and seed meters bought with the planter
• Tillage: field cultivators, disk rippers, vertical tillage tools and strip-till bars
• Hay and forage: round and large square balers, mower-conditioners and windrowers, rakes, tedders and bale handling
• Livestock and dairy: TMR mixers and feeders, robotic milking units, manure handling and spreaders

Implements are untitled, so the lender files a UCC lien and values the equipment on its resale market. Planters, balers and mainstream tillage tools sell readily used and finance on the best terms. A custom hay or planting operation is underwritten on its custom-hire income as well as the farm’s own acres, so bring the customer list and last season’s invoices.

Machines with their own pricing and payment examples have their own pages: tractor financing, combine financing, sprayer financing and grain bin and dryer financing.

Most farms do not buy one implement at a time. A spring package (a planter, a drill and a tillage tool) or a hay line (a baler, a mower-conditioner and a rake) can go on one note with one annual or semi-annual payment, secured by all of the equipment together. That keeps the payments on one date after harvest, gets smaller implements such as rakes and tedders financed when on their own they would fall under the $25K minimum, and lets trade-in equity from several older pieces cover the down payment on the whole package.

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 purchase, 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 lines.

Used farm equipment is financed routinely. Hours or acres, 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 equipment, apply once at equipment financing and we will compare offers across 1,800+ funding partners.