Farm equipment finance provides tailored financial solutions that enable businesses to acquire, lease, or upgrade machinery without placing strain on their working capital. Given the significant investment required, financing plays a crucial role in helping farmers and agricultural businesses manage these costs while maintaining healthy cash flow. It supports investment in new technology, operational upgrades, and business expansion, all while reducing upfront expenses. This form of financial support is essential for maintaining competitiveness, improving efficiency, and ensuring long-term sustainability in the agricultural sector.
Key Types of Farm Equipment Finance
Equipment Loans
Loans specifically designed for purchasing Farm equipment. The equipment often serves as collateral.
Operating Leases
Lease/Renting equipment for a specified period, with options to upgrade or purchase at the end of the term. Benefits include lower upfront costs, regular upgrades, potential tax benefits and flexibility
Chattel Mortgage
Enables ownership of the equipment after making regular payments over an agreed period. A balloon / lump sum at the end of the term can help reduce the regular payments.
Vendor Financing
Finance@work deal with many equipment manufacturers or suppliers offer who offer finance programs that include favorable terms.
Managed Services
Have peace of mind over the term of the agreement, pay one monthly payment for your machinery and the service of it.
Considerations When Choosing Farm Equipment Finance:
- Cost of Equipment: Understand the total cost, including installation, delivery and maintenance.
- Equipment Lifespan: Match the financing term with the expected useful life of the equipment.
- Cash Flow Management: Evaluate how the financing terms will impact your business cash flow.
- Tax Implications: Consider potential tax deductions on interest payments, depreciation, GST refunds or fixed lease expenses.
- Maintenance and Upgrades: Plan for the possibility service, maintenance of the equipment over the term of the agreement
- Seasonal Flexibility: Some financing options may offer flexible payment schedules that align with the Farm production cycle, allowing for lower payments during off-seasons.
Benefits of Farm Equipment Finance:
- Preserve Cash Flow: Spread out the cost over time, preserving capital for other operational expenses.
- Access to Modern Equipment: Financing allows for acquiring the latest machinery, improving efficiency and product quality.
- Tax Benefits: Potential deductions related to financed equipment can reduce taxable income.
- Flexibility: Leasing options provide flexibility to upgrade equipment as needed.
- Scalability: Financing options allow farmers to scale their operations by acquiring additional or more advanced equipment as needed to expand their production capabilities.
Types of farming equipment
Tractors
- Utility tractors
- Row crop tractors
- Compact tractors
- 4WD tractors
Harvesting Equipment
- Combine harvesters
- Forage harvesters
- Cotton pickers
- Grape harvesters
- Sugarcane harvesters
Tillage Equipment
- Plows
- Harrows
- Cultivators
- Power tillers
Planting & Seeding
- Seed drills
- Planters
- Air seeders
- Transplanters
Irrigation Equipment
- Irrigation pumps
- Drip irrigation systems
- Sprinkler systems
- Centre pivot irrigation
Spraying Equipment
- Boom sprayers
- Mist blowers
- Self-propelled sprayers
Feeding & Livestock
- Feed mixers
- Bale feeders
- Livestock scales
- Watering systems
- Milking machines
Hay & Forage Equipment
- Mowers
- Rakes
- Tedders
- Wrappers
Transport & Handling
- Trailers
- Grain carts
- Front loaders
- Augers
- Skid steers
Storage & Utility
- Grain silos
- Fuel tanks
- Generators
- Cold storage units
- Portable sheds
Precision Farming Technology
- GPS & auto-steer systems
- Soil sensors
- Drones for crop monitoring
- Onboard computer systems