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Agricultural Equipment Financing

Agricultural Equipment Financing

Tractors, combines, planters, sprayers, irrigation, and livestock equipment for farms, ranches, and ag operations of every size.

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Reviewed by
Founder & Editor · Expertise: Equipment financing, Lender matching, Loan and lease structure
Last reviewed
Methodology
Sources: partner-lender program data + industry research Editorial standards: methodology Disclosures: advertising + lender relationships
$10K-$1M
Funding range
compact to large-scale ag
6%-12%
Typical APR
Farm Credit System rates
48-84mo
Term length
with seasonal payment options
E
Reviewed by Ed Stapleton Jr. · Founder & Editor

Agricultural equipment financing covers loans, leases, and equipment finance agreements (EFAs) for businesses purchasing equipment in the agricultural category. We finance new and used equipment across all major brands, with rate ranges driven by credit tier, asset price, and equipment type.

What we cover in Agricultural

This category includes 49 equipment types, representing about 172,490 monthly searches. Common items include Strip-Till Equipment, Forage Wagons, Linear Move Irrigation, Vertical Tillage Tools, Nursery Equipment.

Asset prices in this category range from $18,000 to $145,000+, depending on the specific equipment, age, and configuration. We finance new equipment up to 100% of cost (excellent credit) and used equipment up to 80% of appraised value, with terms matched to the equipment’s useful life.

Typical financing structure for agricultural equipment

Credit tier APR range Term Down payment
Excellent (720+) 6.9-9.9% 60-84 mo 0-10%
Good (680-719) 9.9-13.9% 48-72 mo 5-15%
Fair (640-679) 13.9-17.9% 36-60 mo 10-20%
Challenged (below 640) 17.9-24.9% 24-48 mo 15-30%

Rate ranges as of May 2026, blended across our partner-lender network. Your actual rate depends on credit, equipment, term, and lender. See methodology.

How agricultural equipment financing works

  1. Apply for soft-pull pre-qualification. Tell us what you’re buying, asset price, business basics, credit profile.
  2. Get matched to a partner lender that specializes in agricultural equipment and your credit tier.
  3. Receive an indicative quote with rate, term, and structure within hours.
  4. Move to full underwriting if you accept the quote. Hard pull, financials review, equipment verification.
  5. Sign and fund. Most agricultural deals fund within 1-7 business days.

Common questions about agricultural equipment financing

Can I finance used agricultural equipment?

Yes. Most lenders finance used equipment up to 10-15 years old at maturity, with 80-90% LTV based on appraised value. Sometimes a third-party inspection is required for deals over $25K.

What credit score do I need?

Excellent rates require 720+ FICO. Sub-prime equipment lenders accept down to 580 with compensating factors (revenue, down payment, time in business). See our credit tier guide.

Does agricultural equipment qualify for Section 179?

Almost all business equipment qualifies for Section 179 deduction up to $1.22M (2026 cap). Financed equipment qualifies in the year placed in service. See our Section 179 guide.

How long does approval take?

Small-ticket equipment (under $50K) funds in 1-3 business days. Mid-ticket ($50K-$500K) in 3-7 days. Large-ticket ($500K+) in 1-3 weeks.

Case study
Corn-soybean operation finances $385K John Deere combine

1,800-acre Iowa farm replacing 11-year-old combine. Farm Credit System loan at 7.2% APR, 60-month term, 15% down, with skip-payment program (no payments Dec-Feb each year). Total interest savings of $4,200 vs commercial bank quote.

$385K Combine cost
7.2% APR
60 mo Term
3 Skip months/year

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Browse all Agricultural equipment

54 equipment types in this category. Each links to a dedicated financing page with rates, terms, and lender notes.

What to know about financing agricultural equipment

Agricultural equipment finance has its own seasonal rhythm. Most farm operators buy equipment in late winter and early spring, before planting season, and lenders staff their underwriting and funding teams to match. Applications submitted in February and March move faster than identical applications in August. Our partner lender programs for agricultural equipment are deeper for tractors, combines, and tillage equipment than for specialty assets like greenhouses or aquaculture systems.

The structural pattern on ag equipment is that the equipment outlives most other forms of business equipment. A well-maintained utility tractor regularly runs 25-40 years in service. Lenders price terms accordingly, with 7-year loans common on new equipment and 5-year loans common on used. Buyers planning to keep equipment a decade or more often look at $1 buyout structures over fair-market-value leases, because the resale curve makes residual exposure less attractive than ownership.

The other distinguishing feature: ag is more often built on a single principal’s credit and farm operating history than on entity financials. Multi-generation family farms, sole-proprietor operations, and partnerships dominate the buyer base. Lender programs underwrite the principal and the land base alongside the entity, which can either help (when the principal has strong assets) or complicate the file (when the operating entity has thin margins).

Rate ranges we have seen on agricultural financing

Pulled from the deals our partner lenders quoted us in the last 12 months. Your actual rate depends on credit, time in business, equipment year/hours, and structure. Treat these as starting reference points, not quotes.

Credit profile 36-month term 48-month term 60-month term Typical down
720+ Excellent, 5+ yr operation 7.2 - 8.4% 7.5 - 8.8% 7.9 - 9.2% 0%
680-719 Good, 3+ yr operation 8.2 - 9.6% 8.6 - 10.0% 9.0 - 10.6% 0 - 5%
640-679 Fair credit 9.8 - 11.6% 10.3 - 12.2% 10.8 - 12.8% 5 - 10%
Beginning farmer, principal 700+ 9 - 11% 9.5 - 11.5% 10 - 12% 10 - 20%
Credit challenged or restart 13% + Limited Rare 20 - 30%

USDA-backed Farm Service Agency loans offer rates several points below the commercial ranges shown but require longer underwriting cycles. Used tractors over 15 years old typically price 100-200 basis points above the ranges above.

Three deals we routed in the last quarter

Each scenario below is a real structure from our partner lender network, with identifying details removed. The borrower-profile, equipment, and structure are accurate; the price points are within five percent of actual.

Scenario 1

Row-crop farm replaces aged combine

Borrower
22-yr farming operation, 750 FICO, 1,400 acres owned + rented
Equipment
2023 John Deere S780 combine, $585,000 used 1,200 separator hours
Structure
84-month loan, 5% down, $1 buyout
Payment
$8,420/mo, 7.9% APR

Outcome: Approved through ag-specialty program at sub-bank rates given the operation history and the lender's familiarity with the equipment class.

Scenario 2

Beginning farmer buys first utility tractor

Borrower
Year-3 farm operation, 705 FICO, 80 acres owned, off-farm W-2 supporting cash flow
Equipment
2022 Kubota M5-091 used, $52,400 with loader
Structure
60-month loan, 15% down, owner PG
Payment
$1,015/mo, 9.4% APR

Outcome: Approved through a beginning-farmer specialty program. Off-farm income line documented separately to strengthen cash-flow story.

Scenario 3

Established dairy adds skid steer and feed mixer

Borrower
32-yr dairy operation, 720 FICO, 240-cow herd, $2.8M annual milk revenue
Equipment
2024 New Holland L328 skid + Patz 940 mixer, $112,000 combined
Structure
60-month EFA, 0% down, $1 buyout
Payment
$2,220/mo, 8.2% APR equivalent

Outcome: Same-day approval. Lender bundled the skid and mixer onto a single paper, which simplified the diary's accounting.

Lender programs in our partner network for agricultural

The programs below describe the buckets our partner lender network underwrites for this equipment. We route every application to the program that fits the credit profile, time in business, and structure preference. The program assignment is the single biggest driver of rate, term, and approval speed.

Standard prime program

Bank-rate pricing for established farms with prime credit, profitable financials, and 5+ years of operations. Longest terms in our network on new ag equipment.

  • Min credit: 720
  • Min time in business: 60 months
  • Typical advance: 100% new, 90% on used to 7 years
  • Best for: Established farms, replacement and expansion deals, prime credit

Ag-specialty program

Underwrites with ag-specific cash flow analysis (crop pricing, livestock pricing, weather risk). Works with seasonal payment skips that align with revenue patterns.

  • Min credit: 660
  • Min time in business: 24 months
  • Typical advance: 95-100% new, 85% on used to 10 years
  • Best for: Specialty ag (dairy, livestock, orchards), seasonal payment structures

Beginning farmer program

Specialty program for farmers in their first 5 years of operation. Recognizes off-farm income, family transition deals, and FSA-style backing. Larger down payment offset by access to financing newer farms cannot get elsewhere.

  • Min credit: 680
  • Min time in business: 6 months
  • Typical advance: 80-90% with PG
  • Best for: Beginning farmers, family-farm transitions, FSA-backable deals

Manufacturer captive financing

Direct from John Deere Financial, CNH Capital, Kubota Credit, and equivalents. Most competitive rates and longest promotional terms when buying that manufacturer's equipment.

  • Min credit: 660
  • Min time in business: 24 months
  • Typical advance: 100% new with manufacturer promotions
  • Best for: Major-brand new equipment buyers, promotional-rate buyers

What an underwriter will ask about agricultural

These are the questions we hear our partner lenders ask on every agricultural application. Preparing answers in advance closes the deal one to three business days faster.

  1. Operation type and primary crop or livestock? Cash flow patterns differ enormously across operation types. Lenders price seasonality and commodity exposure accordingly.
  2. Acres owned vs rented? Land base affects loan-to-value at the entity level and signals operation stability.
  3. Off-farm income contribution? Many farm operations rely on off-farm W-2 income. Documenting this strengthens cash flow analysis for smaller operations.
  4. FSA or USDA program eligibility? FSA-backed loans offer better rates but longer cycles. The lender helps identify which program path makes sense.
  5. Prior equipment in service and replacement schedule? Replacement timing and trade-in value affect both structure and equity at signing.
  6. Marketing plan: contract, cooperative, or open market? Contract-backed crops and cooperative-member operations have more predictable revenue, which lenders price favorably.

Issues specific to agricultural deals

These are not the standard equipment-finance pitfalls. They are the patterns we see on this exact equipment, in this exact market, that buyers without recent experience tend to miss.

Trade-in value overstated at application

Farm operators commonly carry trade-in equipment from their prior unit. Application-time trade-in estimates from the dealer often run 10-25 percent above actual auction value. Lenders verify with independent comps, and a low actual value can require additional down payment at signing.

Seasonal payment structures misaligned with crop calendar

Standard monthly payment structures do not match the crop revenue cycle. Operators who do not negotiate seasonal payment skips or annual payment structures often hit cash flow stress in the off-season, particularly in year one before resources stabilize.

Equipment shed and storage infrastructure

New tractors and combines depreciate faster when stored outdoors. Lenders sometimes verify storage availability on larger transactions, and uninsured equipment damage from weather is a real post-funding issue.

Section 179 limits on farming income

Farming-specific tax rules limit Section 179 elections to active farming income. Operations with significant off-farm income or hobby-farm classification can lose the deduction in the year of purchase. Confirm with a farm-experienced tax preparer before structuring around Section 179.

Documents the vendor must produce on agricultural

Lenders fund off documents, not promises. The items below are the ones we have seen hold up funding on agricultural deals. Confirm each is in hand before signing.

  • Bill of sale itemized. Tractor, attachments, accessories, and dealer-installed options listed separately.
  • Hour meter and engine hours documented. Both PTO and engine hours where applicable. Used equipment requires photo at the time of inspection.
  • Manufacturer warranty status. Remaining warranty term and what is included. Powertrain warranty is the most valuable component.
  • Recent maintenance records. Service history from the prior owner. Particularly important on used equipment given the long useful life of ag machinery.
  • Title and registration on titled equipment. Self-propelled equipment (tractors, combines, sprayers) often requires titling in some states.
  • Tire condition and tread depth. Tires can run $1,500-5,000 each on large equipment. Pre-purchase confirmation prevents post-funding surprises.

Resale and depreciation on agricultural

Agricultural equipment has one of the deepest secondary markets in equipment finance, supported by both domestic farm buyers and international export demand. John Deere and Case IH dominate the resale market for both tractors and combines, holding residuals 8-15 percent better than other brands at the 5-year mark. Kubota and Mahindra hold their value reasonably well on the compact and utility-tractor end of the market.

Auction houses (Sullivan Auctioneers, Steffes Group, Big Iron) move tens of thousands of units annually. Used tractor pricing is stable across cycles, with year-five values typically running 55-65 percent of original MSRP for well-maintained equipment. Combines depreciate faster than tractors because of higher hour accumulation and tighter regional buyer pools.

The export market for ag equipment is meaningful, particularly for late-model tractors and combines shipped to Latin America, Eastern Europe, and Africa. This provides a floor on residual values that other equipment categories do not have. Tier-3 emissions equipment that no longer qualifies for U.S. commercial use often still finds export demand, which is unique to ag among equipment-finance categories.

Typical retained value
Year 1
82%
Year 3
68%
Year 5
55%
Year 7
42%

Who finances agricultural equipment

Buyers shopping agricultural financing come from a few distinct backgrounds. The four profiles below cover most of what we see. Lender match, structure, and pricing all shift across profiles even when the equipment is identical.

The fleet adder

An operator adding the fifth, sixth, or twentieth unit to an existing fleet. Lenders look at portfolio concentration on their side, but if the borrower has been paying on prior units cleanly, the next deal is straightforward.

The cash-rich buyer

A business that could pay cash but chooses to finance for tax benefit (Section 179 election with the financed equipment) or to preserve working capital for higher-return uses. These borrowers often look at $1 buyout structures because the tax treatment matches a purchase.

The non-profit buyer

A 501(c)(3) or government-affiliated entity buying equipment for mission delivery. A subset of our partner lenders runs dedicated non-profit programs with different rate and term structures. Tax-exempt status changes some of the conventional financing math.

The seasonal operator

A business with revenue that concentrates in certain months. Lenders price this risk by either requesting larger down payments, asking for proof of working capital reserves, or structuring seasonal payment skips that match the revenue pattern.

What lenders weigh on agricultural applications

The lender review on agricultural deals follows a fairly consistent set of weights across our partner network. The factors below carry the most influence on whether the deal funds and at what rate.

  • Documented backlog or pipeline. Signed contracts, outstanding purchase orders, or a documented work backlog support the application story. For service businesses in particular, a pipeline that justifies the new equipment closes deals faster than projections alone.
  • Industry sector. Some industries get standard pricing, some get a premium, some get a discount. Long-term stable sectors with low default rates (utility infrastructure, established medical, government contractors) typically price favorably.
  • Existing debt service. Lenders look at total monthly debt obligations against cash flow. Adding a new payment that pushes the debt service coverage ratio below 1.20 typically requires additional support or a larger down payment.
  • Business credit profile. D&B Paydex, Experian Intelliscore, and trade references from current vendors. Stronger business credit reduces personal-guarantee scope and improves the rate.
  • Owner background and depth. Years of related industry experience, prior ownership of similar equipment, and any documented success operating the asset class affect underwriting. New entrants to a class price differently from established operators expanding within their lane.

How agricultural equipment is taxed

The tax treatment of a agricultural purchase often drives the structure decision (loan, $1 buyout, FMV lease) more than rate or term. The provisions below cover the main areas; the actual application to your situation should run through your tax adviser.

State conformity

States vary on whether they conform to federal Section 179 limits and bonus depreciation. A few states still cap Section 179 well below the federal amount or disallow bonus depreciation entirely. Your effective tax savings depend on both federal and state treatment.

Section 179 expensing

Allows a taxpayer to elect to deduct the cost of qualifying property as an expense in the year it is placed in service, subject to annual limits set by Congress. Most equipment used more than 50 percent for business qualifies. The election is made on Form 4562 with the tax return.

Bonus depreciation interaction

Bonus depreciation under IRC Section 168(k) applies to qualifying property and runs alongside Section 179. The two interact: Section 179 is taken first and is subject to taxable income limits, then bonus depreciation applies to the remainder. Most equipment buyers use both.

The questions buyers ask before applying

What if my business is structured as a sole prop with no separate business credit?
You can still finance equipment, but the lender will primarily underwrite on your personal credit and personal income. Sole props sometimes face higher down payment requirements and shorter terms than LLC or corporate borrowers. Forming an LLC and operating under it for a couple of years opens up more program options.
Do I need to disclose other business debt to the lender?
Yes. Lenders calculate debt service coverage on total obligations. Not disclosing material debt can be treated as misrepresentation in the application. Existing business debt is normal and the application accommodates it.
What if the equipment will be cross-border or international?
Equipment that crosses an international border in the course of business (cross-border trucks, certain aviation) is financeable but requires the lender to confirm coverage in the equipment use. Cross-border use can also affect insurance, registration, and apportioned licensing.
Can I see all the offers, or only the one you recommend?
You see the offer or offers from the lender or lenders we route your application to. We route to the lender or lenders we believe match your profile best. If you want to compare against an offer you have independently, share it with us and we can route to a different lender for an alternative quote.
Does my application count as a hard credit pull?
Prequalification through us is a soft pull with no impact on your score. When you accept a partner lender offer and proceed to formal application, the chosen lender typically runs a hard pull at that stage with your consent.

How we route the decision

The financing structure that fits depends on the actual situation. Below are the most common decision branches we walk through with buyers, in plain "if X, then Y" form.

If Your business operates across multiple states
Then Confirm where to file the UCC-1 (state of incorporation vs state of equipment location). Standard practice files in state of incorporation; check with counsel on edge cases.
If Your equipment will be operated by a hired driver or operator
Then Document the operator certification status in advance. Some lenders require proof of OSHA training, CDL, or industry-specific certification before funding on certain equipment categories.
If You are taking a Section 179 election this tax year
Then Use a loan or $1 buyout EFA. Operating lease structures do not qualify for §179 election. Confirm equipment placed in service before December 31.
If Your equipment is part of a larger build-out project
Then Get bundled financing across the full project (equipment + infrastructure + integration) on single paper when possible. Bundled programs typically beat piecemeal financing on rate and approval probability.
If You have access to manufacturer captive promotional financing
Then Compare carefully against bank/independent lender rates. Captive promotions sometimes look better on stated rate but include adjustments (lower discount, required service bundles) that change the net economics.

Timeline expectations

What actually happens day-by-day, from application to equipment in service. Most buyers underestimate one or two of these steps; knowing them up front prevents surprises.

Lease end-of-term decision deadline
60 to 90 days before term end
Most lease structures require notice of intent (purchase, return, or renew) 60-90 days before term end. Missing the deadline can trigger automatic renewal or other default consequences.
Document signing to funding
1 to 3 business days
Lender operations team processes signed docs, files UCC, and funds the seller. Wire transfers funded same-day if processed before cutoff.
Apportioned plate registration (trucking)
2 to 4 weeks
New-authority trucking operators need apportioned plates before crossing state lines. Plan this into the funding timeline; temporary trip permits bridge the gap at higher per-state cost.
CARB compliance verification (California)
1 to 5 business days
California off-road diesel equipment requires CARB compliance verification. The DOORS database lookup is same-day; full compliance certification for transferred equipment runs days.
Insurance binder issuance
Same-day to 24 hours
Commercial auto and equipment insurance binders typically issue same-day from existing carriers. New policies for new businesses can run 2-5 business days to bind.
Equipment delivery and inspection
1 day to 16 weeks
Wide range depending on equipment type. In-stock equipment delivers in days. Custom-configured manufacturing equipment runs 8-16 weeks. Imported equipment runs 12-24 weeks.

Cost stack: what total ownership actually includes

The equipment purchase price is one line on the financed amount. The actual cost of ownership over the life of a agricultural deal includes the items below. Buyers who only budget for the purchase price often hit cash-flow surprise within the first 12 months.

  • Sales or use tax. State and local sales tax on the equipment. Rolls into financed amount in most states. Manufacturing and qualifying exemptions reduce or eliminate this in many states.
  • Tooling and accessories. Cutting tools, attachments, fixtures, and accessories specific to the equipment. Often quoted separately from base equipment. Can run 10 to 40 percent of equipment cost.
  • Operator training. Manufacturer-provided or third-party operator training. Runs $1,500 to $25,000 depending on equipment complexity. OSHA-compliant training required on many categories.
  • Documentation and dealer fees. Lender doc fee runs $150 to $1,500. Dealer doc fee varies. Both may roll into financed amount or pay at signing.
  • End-of-term residual or buyout. Lease structures: fair market value buyout at term end (FMV lease) or stated residual amount (TRAC lease). Loan/EFA structures: $1 buyout or no buyout. Plan for this from day one on lease structures.
  • Delivery and freight. Equipment delivery from dealer to operating site. Runs 1 to 5 percent of equipment price on standard equipment, higher on heavy or oversized equipment requiring permits and escorts.
  • Late payment fees and penalties. Late fees of 5 to 10 percent of payment if more than 10 days late. Default interest of 4 to 6 points may apply. Worth knowing before signing.
  • Installation and commissioning. Site preparation, electrical, plumbing, leveling, calibration, and operational commissioning. Runs 5 to 25 percent of equipment price depending on equipment category.
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Common questions about Agricultural financing

How do seasonal payment programs work?

Common in ag. The lender skips payments during defined off-season months (typically January-March for grain operations, December-February for many other ag operations). Total payments do not change; the maturity extends to absorb the skips.

Should I use Farm Credit or commercial banking?

Farm Credit System (AgriBank, Farm Credit Mid-America, etc.) typically offers the best rates and most ag-friendly terms. Commercial banks compete on specific equipment or scenarios. We route to whichever fits best.

What about USDA Farm Service Agency loans?

FSA direct and guaranteed loans work for ag equipment, especially for beginning farmers or operators in underserved areas. Rates are favorable but underwriting is slow (45-90 days). Worth pursuing for capital-intensive purchases.

Can crop insurance affect my lending terms?

Yes, positively. Lenders favor borrowers with documented crop insurance coverage because it stabilizes cash flow. Some larger loans require crop insurance as a covenant.

How do you finance equipment from auction?

Pre-approval is required before bidding. Most ag auctions require 7-14 day payment, giving us time to fund. We work with Steffes, Sullivan, and other major ag auction houses.

E
Reviewed by

Ed Stapleton Jr.

Founder & Editor

Ed Stapleton Jr. runs Fund My Equipment. Every page on this site is written and reviewed by Ed.

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