Farm Equipment Loans: Best Financing Options for Farmers
You can get farm equipment loans from the Farm Service Agency, SBA lenders, online lenders and specialty financing companies.
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| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 | low interest rates | $400,000 | Undisclosed | 5.25% | 12 months to 7 years | ||
 with Fundera by NerdWallet | established farms | $1,000,000 | 24 months | Undisclosed | Undisclosed | with Fundera by NerdWallet | |
 with Fundera by NerdWallet | Read expert review | fast financing | $250,000 | 24 months | 5.99% | 12 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | large loan amounts | $5,000,000 | 24 months | 9.75% | Up to 25 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | startups | $150,000 | 6 months | Undisclosed | 24 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | bad credit | Undisclosed | 6 months | 7.5% | 24 months to 6 years | with Fundera by NerdWallet | |
 | flexible financing | Undisclosed | Undisclosed | 6.95% | 24 months to 7 years |
farm equipment financing options: More details
Farm Service Agency: Best for low interest rates
These Farm Service Agency loans offer low interest rates and repayment terms up to seven years.
FSA Direct Operating Loan
Max loan amount
$400,000
Min. credit score
Undisclosed
Term length
12 months to 7 years
Pros
- Low interest rates.
- Can be used for a variety of farming purposes.
- No down payment required.
- Borrowers with credit challenges may still qualify.
Cons
- Must be an established farm; borrower must have relevant farming experience.
- Document-heavy application process.
- Slow to fund.
Pros
- Low interest rates.
- Can be used for a variety of farming purposes.
- No down payment required.
- Borrowers with credit challenges may still qualify.
Cons
- Must be an established farm; borrower must have relevant farming experience.
- Document-heavy application process.
- Slow to fund.
U.S. Bank: Best for established farms
U.S. Bank can offer up to 125% in farm equipment financing — including soft costs, such as freight, warranties and taxes. You’ll need at least two years in business to qualify.
U.S. Bank - Equipment financing
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Max loan amount
$1,000,000
Min. credit score
Undisclosed
Term length
Undisclosed
Pros
- Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
- No down payment or blanket lien required.
- Option to finance multiple pieces of equipment on one contract.
Cons
- Can only apply online for transactions under $250,000.
- Interest rates and qualification requirements not disclosed online.
Pros
- Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
- No down payment or blanket lien required.
- Option to finance multiple pieces of equipment on one contract.
Cons
- Can only apply online for transactions under $250,000.
- Interest rates and qualification requirements not disclosed online.
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Triton Capital: Best for fast financing
Triton Capital can finance a range of new and used farm equipment — with approvals in as little as two hours and funding as fast as two days.
Triton Capital - Equipment financing
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Max loan amount
$250,000
Min. credit score
575
Term length
12 months to 5 years
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
- Requires higher annual revenue than other online lenders.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
- Requires higher annual revenue than other online lenders.
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U.S. Small Business Administration: Best for large loan amounts
SBA 7(a) loans can provide up to $5 million in financing. These loans have competitive interest rates and long repayment terms.
Low interest rate
SBA 7(a) loan
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Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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National Funding: Best for startups
New farmers and agricultural businesses may qualify for equipment financing from National Funding with just six months in operation.
National Funding - Equipment financing
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Max loan amount
$150,000
Min. credit score
600
Term length
24 months to 5 years
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Can't be used to built business credit.
- Charges an origination fee.s a factor rate that makes it more difficult to compare costs with other lenders.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Can't be used to built business credit.
- Charges an origination fee.s a factor rate that makes it more difficult to compare costs with other lenders.
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eLease: Best for bad credit
You may be able to qualify for a farm equipment loan from eLease with a minimum credit score of 550.
eLease - Equipment financing
4.0 NerdWallet rating
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Max loan amount
Undisclosed
Min. credit score
550
Term length
24 months to 6 years
Pros
- No loan or leasing maximums.
- No minimum revenue requirement.
- Startups and low credit scores accepted.
Cons
- Must apply over the phone.
Pros
- No loan or leasing maximums.
- No minimum revenue requirement.
- Startups and low credit scores accepted.
Cons
- Must apply over the phone.
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AgDirect: Best for flexible financing
AgDirect specializes in equipment financing for farms and other agricultural businesses. You can buy or lease farm equipment from a dealership, as well as buy or refinance equipment from an auction or private party.
AgDirect - Farm equipment financing
Max loan amount
Undisclosed
Min. credit score
Undisclosed
Term length
24 months to 7 years
Pros
- Can finance or lease a wide range of new or used farm equipment.
- Low interest rates.
- Flexible payment schedules available (e.g. annually, semiannually).
- Approvals in as little as three business hours.
Cons
- May require up to 30% down payment.
- Qualification requirements not disclosed online.
Pros
- Can finance or lease a wide range of new or used farm equipment.
- Low interest rates.
- Flexible payment schedules available (e.g. annually, semiannually).
- Approvals in as little as three business hours.
Cons
- May require up to 30% down payment.
- Qualification requirements not disclosed online.
What is a farm equipment loan?
A farm equipment loan is a loan that’s specifically used to purchase equipment for a farm or similar agricultural business. Depending on your lender, you may be able to buy new or used equipment, such as tractors, combines, harvesters, planters, dump trucks and utility vehicles, among other options.
Like other types of equipment financing, farm equipment loans typically use the machinery you purchase as collateral on the loan.
How does farm equipment financing work?
Farm equipment loans are usually structured as business term loans. You borrow a lump sum of capital from a lender and repay it, with interest, over a specific period of time.
Here’s what you can typically expect from this type of financing:
- Repayment terms. One to 10 years, depending on the type of equipment you’re purchasing. Terms are typically based on the projected useful life of the equipment.
- Payment schedule. Monthly basis, although some lenders offer flexible payment schedules (e.g., annually, semi-annually or quarterly).
- Interest rates. 5% to 15% from government, bank and direct lenders. Online lenders may have higher rates. The rate you ultimately receive depends on your qualifications, down payment and equipment value.
Where to get farm equipment financing
Farm Service Agency
Best for: Experienced farmers who want low interest rates and long repayment terms.
Backed by the U.S. Department of Agriculture, the FSA offers several types of farm loans:
- Loan amounts up to $400,000.
- Repayment terms up to seven years.
- Can be used to fund farm operating costs, including equipment and machinery.
- Interest rates set monthly by the FSA.
- Loan amounts up to $50,000.
- Designed for new, small and niche farms (e.g. farmers markets, truck farms, Community Supported Agriculture operations).
- Can be used to purchase equipment.
- Repayment terms and interest rates mirror standard direct operating loans.
- Native American tribal loans.
- Emergency loans.
- Youth loans.
- Repayment terms, interest rates and eligibility vary by program.
- Issued by banks and credit unions.
- FSA guarantees up to 90% of the loan (95% in limited cases).
- Rates and terms negotiated between borrower and lender, subject to FSA maximums.
Eligibility requirements
To qualify for an FSA equipment loan, you must:
- Meet agricultural-specific requirements.
- Demonstrate managerial experience.
- Show ability to repay.
- Have an acceptable credit history.
The FSA does not use credit scores and will not automatically reject applicants for no credit history or isolated incidents of slow payments.
Application process
To apply for one of these government equipment loans, you need to fill out a lengthy and detailed application. Once you send a finished application to the FSA, it can take up to 60 days to receive approval and funding.
The FSA recommends reaching out to your local office or USDA Service Center for assistance on completing and submitting a loan application. These organizations can also help connect you with a local lender if you’re interested in a guaranteed loan.
» MORE: How to get farm grants
SBA lenders
Best for: Established farmers with strong credit and finances.
Although the Small Business Administration recommends that farmers start their financing search with the FSA, you can use SBA loans for farm equipment purchases. Both SBA 7(a) and 504 loans can offer low interest rates, long repayment terms and a government guarantee from the SBA.
SBA 7(a) loans
- Loan amounts up to $5 million.
- Interest rates ranging from 9.75% to 14.75%.
- Repayment terms up to 10 years for equipment.
- SBA guarantees up to 85% for loans up to $150,000 and 75% for loans greater than $150,000.
SBA 504 loans
- Loan amounts up to $5 million (up to $5.5 million for select projects).
- Repayment terms up to 10 years for equipment.
- Require a minimum 15% down payment for farms (considered a “special purpose property”).
- Interest rates tied to five- and 10-year U.S. Treasury notes.
- SBA offers a 100% guarantee on the CDC portion of the loan.
- Must meet job and retention requirements.
How to qualify and apply
To qualify for a 7(a) or 504 loan, you’ll typically need:
- Good credit.
- Multiple years in business.
- Strong finances.
Like FSA loans, SBA loans require a lengthy and document-heavy application process. It can take anywhere from 30 to 90 days to get an SBA loan.
Online equipment lenders
Best for: Farmers who need fast funding or don’t qualify for government loans.
Online lenders typically offer streamlined applications with minimal documentation and may be able to provide funding in a few business days.
These lenders tend to have more flexible qualification requirements than traditional ones, and some may be willing to work with startups or businesses with bad credit. In exchange for this speed and flexibility, however, you’ll usually pay higher interest rates on your funding.
» MORE: Equipment loans for bad credit
Specialty farm equipment lenders
Best for: Farmers who want agriculture-specific expertise or more personalized financing.
Some lenders specialize in the agriculture industry and offer direct funding to farmers. These companies tend to provide a wide range of loan options as well as their knowledge and expertise to the financing process.
One example is Farm Credit, a network of customer-owned financial institutions that provide loans and financial services to farmers and other agribusinesses nationwide.
AgDirect (Farm Credit program)
AgDirect is an equipment financing program offered by several Farm Credit institutions. Through this program, you can
- Finance or lease new and used equipment.
- Buy or lease equipment from a dealership.
- Buy or refinance equipment from an auction or private party.
To find a Farm Credit institution in your state, you can use the search function on the network's website.
How to get a loan for farm equipment
The best farm equipment loan for your business will ultimately depend on your individual financing needs and how well you meet lenders’ eligibility requirements. Follow these steps to get started:
- Evaluate your financing needs. Consider what type of equipment you’re looking to purchase and how much it costs. Some lenders may specialize in heavy equipment financing, for example, while others may not fund used equipment purchases. Understanding your specific needs can help you effectively direct your funding search.
- Check your qualifications. Most lenders will use your personal credit score, time in business and annual revenue to underwrite your loan application. Reviewing these metrics ahead of time will give you a sense of where your business stands before applying.
- Consider your down payment. Some lenders will require you to provide a down payment for your farm equipment financing — potentially up to 30%. If you can’t afford a down payment, you’ll want to look for lenders that offer zero-down financing. Alternatively, providing a down payment (especially when it’s not required) may help newer businesses or borrowers with bad credit qualify.
- Get an equipment quote. Most lenders will want you to provide an equipment quote as part of your loan application. You should compare prices for the equipment you want to purchase to determine where you can get the best deal.
- Compare farm equipment financing options. If you can qualify, opting for an FSA, SBA or bank loan may offer you the most competitive interest rates and terms. Online lenders may be a suitable choice, however, if you need fast funding or can’t qualify for more traditional options. In any case, you should research and compare multiple lenders to find the right fit for your needs.
- Organize and prepare for your application. Most lenders will require you to provide basic information about you and your business, business financial documents and tax returns, among other paperwork. It can be useful to pull this information ahead of time to expedite the application process. You should also read the application instructions carefully — answering questions as intended and providing accurate and up-to-date documentation will help you get approved faster.
Frequently asked questions
Different types of farm equipment loans include:
- Term loans.
- Lines of credit.
Farm equipment loans can be issued by the FSA, SBA lenders, online lenders, as well as direct financing companies.
You may be able to get farm equipment financing from an online lender with a credit score as low as 550. A higher credit score, however, will help you access loan options with the most competitive rates and terms.
Generally, repayment terms on farm equipment financing are based on the anticipated life of the machinery you’re buying. Terms may range from one to 10 years.
Yes, in most cases, interest payments on farm equipment loans are tax-deductible. According to the IRS, you can deduct interest on debt as long as:
- You are legally liable for the debt.
- You and the lender intend that the debt be repaid.
- You and the lender have a true debtor-creditor relationship.
There are some restrictions based on your interest expenses and business income for the year.
Last updated on February 18, 2026
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