Quick answer
Farms and agribusinesses typically borrow for machinery and vehicles, for seasonal inputs such as seed, fertiliser, feed and fuel, and for land and infrastructure. Income is seasonal and exposed to weather and commodity prices, so lenders look at production history, diversification, land security and how repayments are timed around harvest or sale cycles. Government support may be available in some circumstances.
Key points
- Income is seasonal, so repayment timing should match harvest or sales.
- Machinery and vehicle finance use the asset as security.
- Land is a significant form of security but rural property is assessed differently.
- Drought, floods and price swings make buffers essential.
At a glance
- Typical needs
- Machinery, seasonal inputs, livestock, land and infrastructure
- Common facilities
- Equipment finance, seasonal facilities, secured loans
- Lender focus
- Production history, seasonality, land security, diversification
- Government support
- Regional Investment Corporation and disaster programs, subject to eligibility
Farming may be the most seasonal business there is. Costs arrive at planting, mustering or calving, income arrives at harvest or sale, and the gap between them depends on rain, prices and markets far beyond the farm gate. Agribusiness finance is about structuring borrowing so that repayments land when the money does, and keeping enough buffer for the years that do not go to plan.
Typical finance needs on the land
| Need | Typical approach |
|---|---|
| Tractors, headers, utes and implements | Equipment finance, often with seasonal repayments |
| Seed, fertiliser, chemicals, fuel and feed | Seasonal working capital facilities or a line of credit |
| Livestock purchases | Seasonal or term facilities, sometimes secured by land |
| Land, water and infrastructure | Long-term secured lending |
How lenders assess farm businesses
Lenders want to see production and financial history across several seasons, including how the business fared in dry or difficult years. They look at diversification across crops, livestock or off-farm income, water security, debt levels and the quality of the land as security. Rural property is assessed differently from urban property, and loan-to-value limits can be more conservative, particularly for remote or specialised holdings.
Timing repayments to the season
A repayment schedule that ignores the farm calendar creates stress. Many agribusiness lenders can align repayments with harvest or sale periods, such as annual or half-yearly payments, or interest-only periods during the growing season. Ask about seasonal structures before agreeing to standard monthly repayments. Our seasonal stock guide explains the general principles of timing finance around a cycle.
Government support worth checking
The Regional Investment Corporation administers concessional loans for eligible farm businesses, and assistance may be available after declared natural disasters through business.gov.au. The Department of Agriculture, Fisheries and Forestry publishes information on programs. Eligibility and availability change, so check current details and read our grants and schemes guide.
Machinery: new or used
Used machinery can be good value and is widely financed, but check hours, service records and PPSR status. Our guide to financing used equipment covers the checks. For high-value items, consider whether contracting or sharing equipment with neighbours would be cheaper than owning.
An illustrative example
A made-up mixed farm needs a new spray rig before the season. It finances the rig with equipment finance on an annual repayment schedule timed for after harvest, and uses a seasonal facility for chemicals and fuel, repaid when the grain is sold. A cash reserve held from a good year sits untouched as a drought buffer.
Strengthening a farm finance application
Agribusiness lenders look for evidence that the business has been managed through good and bad seasons. Bring several years of financial statements, production records and a budget for the coming season showing when costs fall and when income arrives. Note water entitlements, insurance cover and any off-farm income. If you have been through drought or flood, explain what you did and what has changed.
For machinery, include hours, service history and how the machine will be used. A clear seasonal cash flow budget is often the single most persuasive document a farm can provide.
Questions to ask before you borrow
- Can repayments be timed to harvest or sale periods?
- What happens to repayments in a poor season?
- Is concessional finance through a government program available and worth comparing?
- Would contracting or sharing machinery be cheaper than buying?
Finance for your farm or agribusiness
If you need machinery, seasonal inputs or funds for land and infrastructure, finance structured around your season can make a real difference. To explore options, make one enquiry. There is no credit check when you first enquire, a real person reviews it and your details go to one lending partner rather than a crowd. Tell us what you produce, when your income arrives and what the funds are for in your enquiry.
Frequently asked questions
Can farm loan repayments be seasonal?
Some lenders offer repayment schedules aligned with harvest or sale periods, such as annual or half-yearly repayments. Ask whether seasonal structures are available.
Is rural land good security?
It can be, but lenders assess rural land differently from urban property, considering size, location, water, productivity and resale market. Loan-to-value limits can be lower.
Are there government loans for farmers?
The Regional Investment Corporation administers concessional loans for eligible farm businesses, and disaster assistance may be available after declared events. Check current programs and eligibility directly.
Can I finance used farm machinery?
Yes, used tractors, harvesters and other machinery are commonly financed, subject to age, condition and resale market.
How do lenders view drought-affected farms?
They look at the farm's history through previous dry periods, debt levels, water security and diversification. Government support and the farm's plan for recovery are also considered.
Sources and further reading
We are an information site, so we do not rank lenders, publish interest rates or accept payment to feature a product. Every page is written and checked by our editorial team against official sources. Read our editorial policy and how we are funded.
