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.
+1
Written by
Randa Kriss
Senior Writer & Content Strategist | Small business, business banking, business loans
Expertise
Small business
Business lending
Business banking
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is fact-checked for accuracy, timeliness, and relevance by humans. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. Learn more by checking our Editorial Guidelines.
Content was accurate at the time of publication.
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
You're our first priority.
Every time.
We believe everyone should be able to make financial decisions with confidence. While we don’t cover every company or financial product on the market, we work hard to share a wide range of offers and objective editorial perspectives.
So how do we make money? Our partners compensate us for advertisements that appear on our site or when you click to or take an action on their website. This compensation helps us provide tools and services - like free credit score access and monitoring. With the exception of mortgage, home equity and other home-lending products or services, partner compensation is one of several factors that may affect which products we highlight and where they appear on our site. Other factors include your credit profile, product availability and proprietary website methodologies.
However, these factors do not influence our editors’ opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners.
Edited by
Sally Lauckner
Managing Editor
Expertise
Business financing
SBA loans
Starting a business
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is fact-checked for accuracy, timeliness, and relevance by humans. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. Learn more by checking our Editorial Guidelines.
Content was accurate at the time of publication.
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
You're our first priority.
Every time.
We believe everyone should be able to make financial decisions with confidence. While we don’t cover every company or financial product on the market, we work hard to share a wide range of offers and objective editorial perspectives.
So how do we make money? Our partners compensate us for advertisements that appear on our site or when you click to or take an action on their website. This compensation helps us provide tools and services - like free credit score access and monitoring. With the exception of mortgage, home equity and other home-lending products or services, partner compensation is one of several factors that may affect which products we highlight and where they appear on our site. Other factors include your credit profile, product availability and proprietary website methodologies.
However, these factors do not influence our editors’ opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners.
Select your business type to get personalized loan recommendations:
Farm equipment financing is available from a range of sources, including government agencies and lenders that specialize in agriculture. Farm equipment loans can be used to buy new and used machinery, vehicles and other equipment that’s necessary for your operations.
The best farm equipment financing is the most affordable small-business loan you can qualify for that meets your needs.
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
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.
The Farm Service Agency Direct Operation Loan stands out as a low-interest option for established farmers. These government loans can be used for a variety of purposes, including everyday expenses, equipment or machinery purchases and minor building improvements. Although you’ll need to show your farm experience to qualify, the FSA can work with borrowers with bad or limited credit.
Be an eligible farm enterprise.
Have an acceptable credit history (thin or no credit doesn’t necessarily disqualify).
Be unable to obtain sufficient credit elsewhere.
Have sufficient managerial ability in the farming industry.
Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
Cons
$375 origination fee required for expedited application (if you’re not an existing customer).
Expedited application only available on deals up to $250,000.
Interest rates and qualification requirements not disclosed online.
U.S. Bank stands out for its flexible equipment financing program. With this program, you can finance up to 125% of your equipment purchase, including soft costs such as installation, taxes and freight. U.S. Bank offers several repayment options and allows you to finance multiple pieces of equipment on one contract. Unlike some bank lenders, U.S. Bank doesn’t require a down payment on its equipment financing and doesn’t take out a UCC lien on your business assets.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
Charges an origination fee.
Requires higher annual revenue than other online lenders.
Triton Capital stands out as an online equipment lender for borrowers with lower credit scores. Triton Capital can finance new or used equipment in a variety of industries. The lender offers competitive interest rates, long repayment terms and flexible payment options. You may be able to get approved and receive funding in as fast as one business day.
SBA 7(a) loans stand out as an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts. These loans can also be used for a variety of purposes, including working capital, business expansions or purchasing equipment and supplies.
For-profit U.S. business.
Unable to access credit on reasonable terms from nongovernment sources.
Financial qualifications determined by individual lender.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Offers loans to startups and borrowers with bad fair 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 build business credit.
Charges an origination fee.
National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
Minimum credit score: 600.
Minimum time in business: Twenty four months.
Minimum annual revenue: $250,000.
eLease - Equipment financing
Best for bad credit
4.0
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
ELease can be a good option for businesses that don’t qualify for more traditional forms of equipment financing. It has flexible qualification requirements and can work with startups and borrowers with bad credit. The company offers competitive interest rates and repayment terms. Unlike other specialized equipment lenders, however, eLease requires you to apply over the phone.
Minimum credit score: 550.
Minimum time in business: 6 months.
Minimum annual revenue: No minimum requirement.
AgDirect - Farm equipment financing
Best for flexible financing
Max loan amount
Undisclosed
Min. credit score
Undisclosed
Min. annual revenue
Undisclosed
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.
Offered by Farm Credit Services of America and participating Farm Credit System Institutions, AgDirect stands out for its flexibility and industry experience. You can purchase, lease or refinance used or new farming equipment with competitive rates and customized repayment plans. And because AgDirect specializes in agricultural businesses and understands their market cycles, you receive a more personalized funding experience.
Be an eligible agricultural producer or farm-related service business.
AgDirect does not disclose specific qualification requirements on its website.
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.
The Farm Service Agency Direct Operation Loan stands out as a low-interest option for established farmers. These government loans can be used for a variety of purposes, including everyday expenses, equipment or machinery purchases and minor building improvements. Although you’ll need to show your farm experience to qualify, the FSA can work with borrowers with bad or limited credit.
Be an eligible farm enterprise.
Have an acceptable credit history (thin or no credit doesn’t necessarily disqualify).
Be unable to obtain sufficient credit elsewhere.
Have sufficient managerial ability in the farming industry.
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.
Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
Cons
$375 origination fee required for expedited application (if you’re not an existing customer).
Expedited application only available on deals up to $250,000.
Interest rates and qualification requirements not disclosed online.
U.S. Bank stands out for its flexible equipment financing program. With this program, you can finance up to 125% of your equipment purchase, including soft costs such as installation, taxes and freight. U.S. Bank offers several repayment options and allows you to finance multiple pieces of equipment on one contract. Unlike some bank lenders, U.S. Bank doesn’t require a down payment on its equipment financing and doesn’t take out a UCC lien on your business assets.
Minimum credit score: Undisclosed.
Minimum time in business: 36 months.
Minimum annual revenue: Undisclosed.
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.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
Charges an origination fee.
Requires higher annual revenue than other online lenders.
Triton Capital stands out as an online equipment lender for borrowers with lower credit scores. Triton Capital can finance new or used equipment in a variety of industries. The lender offers competitive interest rates, long repayment terms and flexible payment options. You may be able to get approved and receive funding in as fast as one business day.
SBA 7(a) loans stand out as an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts. These loans can also be used for a variety of purposes, including working capital, business expansions or purchasing equipment and supplies.
For-profit U.S. business.
Unable to access credit on reasonable terms from nongovernment sources.
Financial qualifications determined by individual lender.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Offers loans to startups and borrowers with bad fair 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 build business credit.
Charges an origination fee.
National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
You may be able to qualify for a farm equipment loan from eLease with a minimum credit score of 550.
eLease - Equipment financing
4.0NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
ELease can be a good option for businesses that don’t qualify for more traditional forms of equipment financing. It has flexible qualification requirements and can work with startups and borrowers with bad credit. The company offers competitive interest rates and repayment terms. Unlike other specialized equipment lenders, however, eLease requires you to apply over the phone.
Minimum credit score: 550.
Minimum time in business: 6 months.
Minimum annual revenue: No minimum requirement.
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.
Offered by Farm Credit Services of America and participating Farm Credit System Institutions, AgDirect stands out for its flexibility and industry experience. You can purchase, lease or refinance used or new farming equipment with competitive rates and customized repayment plans. And because AgDirect specializes in agricultural businesses and understands their market cycles, you receive a more personalized funding experience.
Be an eligible agricultural producer or farm-related service business.
AgDirect does not disclose specific qualification requirements on its website.
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.
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 10% to 15%.
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.
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.
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.
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.
Getting a business loan can be challenging, and several factors — cost, speed, repayment schedule — can play a role in deciding which product is right for you. Let us help you through the process.
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Testimonials
"I was on the market for small business funding to help expand my business and they were able to get me funded in record time, with a great amount and better rates than I was getting with other companies."
Osamede Osa Imasuen
"Went above and beyond what all the other companies were able to do. They spent the time to figure out a way work with the other two credit reporting companies."
Victor Zeines
"I have to mention the application to funding process happened more quickly than I would have ever thought possible."
Troy Nelson
See all reviews on
4.8 Excellent
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
Default
See Your Loan Options
