Understanding Ag Equipment Finance: A Practical Guide for Australian Farmers
Last updated: 3 April 2025
Running a successful farm means more than just managing crops or livestock — it’s about keeping your operations efficient, competitive, and well-equipped. Whether you’re upgrading your tractors, investing in harvesting machinery, or buying new irrigation systems, equipment can be one of your biggest costs.
That’s where Ag equipment finance steps in. It’s a smart, flexible way for farmers to access the equipment they need without large upfront costs. In this guide, we’ll walk you through how ag equipment finance works, your options, and how to choose the right solution for your farm.
What Is Ag Equipment Finance?
Ag equipment finance helps farmers purchase or lease new or used agricultural equipment by spreading the cost over time. Rather than using all your working capital in one go, you can preserve your cash flow and still access the tools you need to stay productive.
Examples of commonly financed agricultural equipment:
Tractors
Harvesters
Sprayers and spreaders
Irrigation systems
Balers
Loaders and telehandlers
ATV and UTV farm vehicles
Whether you’re a family-run farm or a larger-scale operator, the right finance solution can make all the difference.
Why Consider Equipment Finance for Your Farm?
Here are five reasons Australian farmers are turning to finance for their equipment needs:
1. Preserve Your Cash Flow
Keep your working capital free for other operational costs like feed, fuel, wages, and emergencies.
2. Access the Latest Technology
With newer machinery, you benefit from better fuel efficiency, productivity, and fewer breakdowns.
3. Tax Benefits
Some finance structures allow you to claim GST and depreciation or deduct repayments as an expense. (Always speak with your accountant first.)
4. Fast Approvals
Many lenders offer streamlined approvals – sometimes within 24–48 hours – especially for low-doc applications under $75K.
5. Flexible Terms
Loan terms typically range from 12 months to 7 years, with options for seasonal payments that align with your cash flow.
Common Ag Equipment Finance Options
Here are the most popular finance products available to Australian farmers:
1. Chattel Mortgage
A chattel mortgage gives you ownership of the equipment from day one. The loan is secured against the equipment, and you pay it off over time.
Best for: Farmers who want to own the asset outright and benefit from depreciation and GST claims.
2. Equipment Lease
With leasing, the lender owns the equipment, and you make regular rental payments. At the end of the term, you may have the option to buy the equipment.
Best for: Farmers wanting low upfront costs with the flexibility to upgrade later.
3. Hire Purchase
You hire the equipment from the lender and make payments over time. Once the final payment is made, ownership transfers to you.
Best for: Those who prefer fixed payments and ownership at the end.
4. Low-Doc Finance
This is a great option for farmers who don’t have recent financials or prefer a simplified process for smaller equipment purchases.
Best for: Equipment under $75K when you need fast approval.
How to Qualify for Ag Equipment Finance in Australia
To get approved, most lenders will assess:
Your ABN and how long you’ve been trading
Your credit history
The equipment type and value
Financials (optional for low-doc loans)
Asset details and supplier invoice
Tip: At Casey Asset Finance, we work with over 40 lenders, which means we can match you with the right option — even if you’re newly self-employed or have limited paperwork.
What Sets Casey Asset Finance Apart?
As a finance broker who works closely with farmers and suppliers across Australia, we know how valuable your time is. We keep things simple, personal, and fast.
Here’s what you can expect:
Tailored advice from someone who gets it
No overcomplication — just clear next steps
Fast responses, even after hours
Over 40 lenders compared for you
Help with GST, low-doc, and seasonal payment structures
You’ll never be left wondering where your application stands or which lender is the right fit — we guide you every step of the way.
Tips for Choosing the Right Finance Option
Know your cash flow cycle. If you earn seasonally, ask for a tailored repayment plan.
Get a clear quote from your equipment supplier. This helps speed up the process.
Think long-term. Will the equipment serve you well for years to come? If not, a lease or short-term loan might be better.
Avoid overcommitting. Only borrow what you’re comfortable repaying.
Let’s Make Equipment Finance Simple
If you’re ready to invest in the tools you need to grow your farm, ag equipment finance could be the smart, tax-effective solution that keeps your cash flow strong and your operations efficient.
Need help getting started?
We’ll guide you through your options, help you compare lenders, and do all the heavy lifting for you. No pressure, no jargon — just honest support and advice.
