Quick answer
Agricultural machinery finance funds tractors, headers, sprayers, seeders, balers and other farm equipment, with the machine as security. It suits croppers, graziers, dairy farmers, horticulturists and contractors. Lenders look at the machine's value, the farm's income pattern across seasons, past production and financial statements, and credit, and can often set repayments to fall after harvest or sales rather than evenly every month.
Key points
- Repayments can often be timed to harvest, wool, livestock or milk income.
- Mainstream tractors and headers hold value well, which helps approvals.
- Buying used? A PPSR search protects you from a machine with money owing.
- Some farm assets, like fencing and water facilities, have their own ATO deduction rules.
- Finances
- Tractors, headers, sprayers, seeders
- Security
- The machine
- Repayment options
- Monthly or seasonal
- Suits
- Farmers, growers, ag contractors
Farms don’t get paid every fortnight. Income arrives in lumps: after harvest, at the wool sale, when cattle go to market or when the milk cheque lands. Agricultural machinery finance is built around that reality. The machine secures the loan, and the repayments can often be arranged to fall when money comes in rather than in the lean months between.
What can agricultural machinery finance cover?
- Tractors of every size, from compact utility tractors to high-horsepower articulated units.
- Harvesting gear: headers and fronts, cotton pickers, forage harvesters, windrowers.
- Seeding and spraying: air seeders, planters, boomsprays and self-propelled sprayers.
- Hay and livestock gear: balers, mowers, rakes, feed wagons, cattle handling equipment.
- Precision ag: GPS guidance, auto-steer and yield-mapping systems, often bundled with the machine.
- Farm vehicles and trucks, though these are covered in more depth under vehicle finance and truck finance.
Solar pumps, batteries and other energy-saving equipment may be better suited to green finance.
How do lenders look at a farm?
Agricultural lending is its own specialty because a farm’s figures don’t look like a shop’s.
Income over several seasons. One year’s numbers can mislead. Lenders like two or three years of financial statements to see the average and the range.
What the farm produces. Crops, livestock, dairy, horticulture or mixed. Each has its own risks and price cycles.
The machine. Mainstream brands and models with strong dealer support hold value and are the easiest to fund. Older or rare machines may need a deposit or other security.
Equity and existing debt. Land, livestock and other machinery all form part of the picture, along with what’s already owed against them.
Credit and tax. Business and personal credit files, and any ATO debt, are considered case by case.
If your season has gone well and you’re ready to upgrade, see what you could get for new machinery in about a minute.
Monthly or seasonal repayments?
| Monthly repayments | Seasonal repayments | |
|---|---|---|
| How it works | Equal payments every month | Larger payments timed to income months |
| Best for | Dairy and enterprises with steady income | Croppers, graziers, seasonal growers |
| Cash-flow effect | Predictable but can pinch in lean months | Matches when the farm is paid |
| Watch out for | Pressure before harvest | Missing a payment if a season fails |
Seasonal structures need honest planning. Base them on your realistic income month, not your best year. For carrying the farm between paydays more broadly, see seasonal business loans.
What documents should a farm have ready?
- Two or three years of financial statements and tax returns, so the lender can see a full cycle of seasons.
- Recent bank statements for the farm’s operating account.
- A list of land, livestock and machinery owned, with any finance already against them.
- The dealer quote or sale details for the machine, plus trade-in details if you have one.
- A short note on anything unusual, such as a drought year, flood damage or a change in enterprise mix.
Buying used: protect yourself at clearing sales
Second-hand machinery is a big part of farming, and so is the risk of buying something with finance still attached. The PPSR’s agribusiness guidance explains that a $2 search shows whether a security interest is registered, which can mean money is still owing. It also notes that tractors can be searched by serial number, while items like combine harvesters need a search on the seller’s details instead. Skip the search, and you risk the machine being repossessed even though you’ve paid.
Before bidding or shaking hands:
- Search the PPSR and keep the certificate.
- Inspect, or have a mechanic inspect, the machine.
- Check hours, service records and the condition of high-wear parts.
- Get approval in principle so you can pay on the day.
What does agricultural machinery finance cost?
Pricing depends on the machine, your farm’s position and the structure you choose. Compare:
- Total cost over the term, including any balloon.
- Establishment and documentation fees.
- Seasonal structuring, which some lenders price differently from standard monthly terms.
- Early payout costs, important if you upgrade every few seasons.
Tax settings for farms have quirks. The ATO’s page on primary producers’ depreciating assets explains that fencing, water facilities such as dams, bores and pumps, and fodder storage like silos and hay sheds can be deducted in the year the cost is incurred, while most machinery follows the general depreciation rules. Machinery used on the farm may also generate fuel tax credits. Your accountant can model what that means for you.
Illustrative example
Illustrative example: A mixed cropping and sheep enterprise wants to replace a tired header before harvest. A used header and front from a dealer comes to $320k, with the old header traded in. Three years of statements show income landing mostly between December and February, plus a smaller wool cheque. The lender structures the finance with two larger repayments each year after harvest and after shearing, and smaller payments in between. The trade-in covers the deposit, and no land needs to be offered as security.
Dealer finance or arranging your own?
Machinery dealers often have finance on hand, sometimes with manufacturer-backed promotions around field days and the end of the financial year. These can be good value, but they’re tied to that dealer’s stock and the conditions can be narrow. Arranging your own approval gives you the freedom to buy from any dealer, a clearing sale or a neighbour, and to negotiate as a cash-ready buyer. Whichever you choose, compare the total cost over the term, check how seasonal repayments are handled, and read what happens if you pay out early to upgrade.
Mistakes farmers commonly make
- Setting seasonal repayments on a best-case year. Plan for an average season.
- Bidding before approval. Clearing sales don’t wait for finance.
- Forgetting the front, the comb or the GPS. Make sure the price includes everything you need to work.
- Using a machine loan for operating costs. Seed, fertiliser and chemical are working capital needs; see our farm business loan page.
The industry finder shows what other rural businesses typically finance.
Ready to plan your next machine?
If a machine on your farm is due for replacement, it’s worth knowing your options before the season is on you. The enquiry takes around 60 seconds, and nothing is run against your credit file when you first ask. We won’t blast your details out to a crowd of lenders who’ll ring you mid-harvest; a real person looks at your farm, your seasons and the machine, then gives you a call. Answer the form accurately, especially turnover, the machine and any property you own, so the first option we bring is the right one.
Frequently asked questions
Can I make repayments only after harvest?
Many agricultural lenders offer seasonal, quarterly or annual repayments that line up with when the farm is paid. The structure is agreed at the start and should reflect your actual income pattern, so bring a few years of figures that show it.
Can I finance a used header or tractor from a clearing sale?
Usually, yes, but sort out approval before sale day because clearing sales expect quick payment. Run a PPSR search before you bid, and bring the sale details so the lender can identify the machine.
Does a drought year stop me getting finance?
Not automatically. Lenders understand farming has bad years. They'll look at your longer-term production, equity, and how the business came through. A clear explanation and up-to-date figures make a big difference.
Can a farming contractor get agricultural machinery finance?
Yes. Contract harvesting, spraying, baling and seeding businesses finance machinery regularly. Lenders will want to see your client base, how many hectares or hours you work each season, and your trading history.
Can I trade in my old machine as a deposit?
Generally, yes. If the trade-in is owned outright, its value can count toward the purchase. If there's still finance owing on it, the payout is settled as part of the deal and any remaining equity goes toward the new machine.