Farming & Agriculture Loans Australia

Agriculture is the backbone of Australia's regional economy. Australian farm businesses produce $85 billion in output annually and the sector supports hundreds of thousands of jobs across every state and territory. From broadacre grain and oilseed farming in Western Australia and New South Wales to beef and sheep stations across the north and west, dairy farms in Victoria and South Australia, intensive horticulture along the Murray-Darling basin, viticulture in South Australia and Victoria, aquaculture in Tasmania and South Australia, and sugar cane in Queensland, Australian agriculture is extraordinarily diverse. The finance needs of each sector are equally diverse.

Australian Finance & Loans is an independent finance broker with access to over 50 lenders including specialist agricultural lenders, rural banks and non-bank agribusiness financiers. We arrange equipment finance, livestock loans, seasonal operating loans, crop input finance, rural property loans, working capital facilities, and government concessional loan referrals for farming and agricultural businesses across all sectors and all states. We understand the seasonal nature of farming income, the capital intensity of agricultural operations, and the unique risk profile that distinguishes agricultural lending from standard commercial lending. This page is the most comprehensive guide to farming and agriculture finance available in Australia. We cover every product type, every sector-specific consideration, and every government program that affects farm borrowers in 2025 and 2026.

Agricultural Finance Products: Every Type Explained

Farm Equipment Finance (Chattel Mortgage)

The chattel mortgage is the most widely used finance product in Australian agriculture. Under a chattel mortgage, the farming business takes ownership of the equipment or machinery at settlement. The full GST on the purchase price is claimable on the next BAS, a significant immediate cash flow benefit on high-cost agricultural machinery. Interest on repayments is deductible as a business expense each year. The equipment can be depreciated over its ATO effective life. The instant asset write-off scheme may allow immediate deduction of the full purchase price in the year of purchase for eligible assets and eligible businesses: confirm current thresholds and eligibility with your accountant before making a purchasing decision.

Equipment finance rates for farm machinery start from approximately 7.50% per annum for well-qualified farming operators with strong property security and clean credit. Terms are typically 1 to 7 years. Balloon payments can be structured to reduce regular repayments where the farmer prefers to manage a residual payment at end of term, often refinanced or paid from the sale of commodity at harvest.

Agricultural Equipment We Finance

• Tractors: John Deere, Case IH, New Holland, Kubota, Massey Ferguson, Fendt, Claas and all makes from 50hp compact to 600hp+ row crop configurations

• Headers and harvesters: John Deere S and X Series, Case IH Axial-Flow, New Holland CR Series, Claas Lexion

• Seeders and air drills: Horwood Bagshaw, John Deere, Bourgault, Flexi-Coil and SeedHawk

• Sprayers: Hardi, Goldacres, John Deere, Case IH and self-propelled models

• Balers and hay equipment: Krone, New Holland, John Deere and Claas

• Tillage and cultivation equipment: chisel ploughs, disc harrows, vertical tillage and strip-till

• Grain handling: augers, grain carts, chaser bins, silos, drying and aeration systems

• Irrigation: centre pivot systems, lateral move irrigators, drip irrigation, pumps, pipes and infrastructure

• Dairy equipment: rotary and herringbone milking sheds, automatic cup removers, milk cooling systems

• Livestock handling: cattle yards, sheep yards, weighing systems, squeeze shoots and loading ramps

• Fencing: post drivers, wire layers and electric fencing systems

• Farm vehicles: utes, ATVs, side-by-sides, farm bikes and transport trucks

• Agricultural aircraft: crop spray aircraft, mustering helicopters and utility aircraft

• AgTech: precision agriculture sensors, drone spray systems, robotic dairy systems, variable rate technology

Livestock Finance

Livestock finance is one of the most specialised and seasonally sensitive products in agricultural lending. A livestock loan is a short to medium-term facility secured against the livestock being purchased, assessed on the expected weight gain and sale price at the end of the livestock's production cycle. Understanding the specific category of livestock being purchased is essential for structuring the right loan.

Breeder Cattle and Sheep Finance

Breeding cattle and ewes form the productive base of a livestock enterprise. These animals are capital assets held for multiple production years. Finance for breeders is typically structured as a medium to long-term facility, reflecting the multi-year income contribution of the asset. A well-secured breeding herd loan for an established cattle station with 1,000 adult breeders may be structured over 3 to 5 years. The value of breeders is assessed on current cattle market prices, which vary significantly. In the current market, breeder cattle values have strengthened with global beef supply tightening, which increases both the loan amount available and the income capacity to service it.

Trading Cattle Finance (Backgrounding and Finishing)

Backgrounding and finishing cattle are purchased at lighter weights, grown out and sold at slaughter weight or to feedlots. The production cycle is typically 90 to 180 days. Trading cattle loans are short-term facilities that are drawn at purchase and repaid from sale proceeds at the end of the production cycle. This is the most common cattle finance structure used by backgrounders and graziers buying weaners or stores at the saleyards. The loan is aligned to the livestock calendar: buy in autumn, sell in spring, repay at the end of the cycle. Seasonal repayment structures are available from specialist agricultural lenders who understand this production model.

Feedlot Finance

Feedlot operators running confined cattle feeding operations finance both the initial purchase of feeder cattle and the ongoing input costs of feed, veterinary care and management. Feedlot finance involves higher-frequency cash flow and is typically structured as a revolving operating line of credit rather than a fixed-term loan, allowing draws as cattle are purchased and repayments as cattle are sold to the works.

Sheep and Lamb Finance

Merino and crossbred sheep enterprises finance ewes, rams and trading lambs. Dual-purpose enterprises that shear for wool income and sell lambs for meat income have a more complex financing profile than single-purpose livestock operations. Wool income is received at shearing time, lamb income at weaning and sale. Repayment structures for sheep enterprises need to align with these distinct income events.

Other Livestock

• Dairy cattle: herd expansion, replacement heifers and transition cows

• Pigs: sow herd expansion, finisher pig purchase and farrow-to-finish operations

• Poultry: broiler shed development finance and layer hen flock finance

• Goats: rangeland and intensive goat enterprise finance

• Horses: thoroughbred and stock horse enterprise finance

• Deer, bison and alternative livestock: specialist lender assessment required

Seasonal Operating Loans (Crop Input Finance)

A seasonal operating loan provides a line of credit or lump-sum facility for the annual input costs of a cropping or horticultural operation. For a dryland grain farmer growing wheat, canola and barley, the seasonal inputs include seed, fertiliser, herbicides, fungicides and insecticides, fuel and oil, contracting costs and freight. These costs are incurred in autumn and winter for winter crops. Income from the harvest is received in late spring and summer. The mismatch between cost timing and income timing is the defining cash flow challenge of cropping enterprises.

A seasonal operating loan is drawn at the start of the season, used to pay input suppliers, and fully repaid from harvest proceeds. The loan term is typically 6 to 12 months, aligned to the annual crop cycle. Interest accrues on the drawn balance during the season. For operations with separate summer and winter crops, two seasonal facilities or a revolving line of credit with two draw-and-repay cycles per year is more appropriate.

Crop Input Finance: What It Covers

• Certified seed and plant material

• Fertiliser: urea, DAP, MAP, potash and specialty blends

• Crop protection: herbicides, fungicides, insecticides and adjuvants

• Contracting costs: seeding, spraying and harvesting contracting

• Fuel and oil for the farm operation during the season

• Freight to receival sites and grain storage costs

• Agronomy and consulting fees

• Water allocations and irrigation operating costs

Rural Property Finance

Purchasing farmland in Australia involves loan amounts that reflect the capital-intensive nature of agricultural land values. A cropping property in the Riverina might cost $4,000 to $8,000 per hectare. A feedlot in the Darling Downs or a dairy farm in Gippsland may involve total acquisition values of $2,000,000 to $10,000,000. Specialist rural property lenders assess farm purchases differently from residential or commercial property lenders, with specific expertise in rural land values, water entitlements, infrastructure assessment and pastoral lease versus freehold considerations.

Rural property loans are typically long-term facilities of 5 to 30 years. Loan-to-value ratios for rural property are typically 50% to 70% from specialist agricultural lenders, reflecting the lower liquidity of rural property compared to metropolitan residential property. Some properties in very remote locations or on pastoral lease may attract lower LVRs. Rural Bank, NAB Agribusiness, ANZ Agribusiness, Rabobank Australia and Westpac Agribusiness are the major specialist agricultural lenders in Australia. We work with all of these lenders and the broader non-bank agricultural lending market.

Walk-In Walk-Out (WIWO) Farm Purchases

A walk-in walk-out farm purchase involves acquiring a complete farming operation including the land, all buildings and infrastructure, all plant and equipment, all livestock, all stored grain and produce, and any input stocks on hand. The seller walks out and the buyer walks in to a functioning farming enterprise. WIWO purchases are common in Australian agriculture as they allow the buyer to commence farming operations immediately without the capital outlay of establishing the livestock, machinery and inventory from scratch. Financing a WIWO purchase requires specialist lenders who can assess and finance the full combined value of all components simultaneously. We have experience in WIWO farm purchase finance and understand the documentation and valuation requirements involved.

Agribusiness and Processing Finance

Some agricultural businesses extend beyond primary production into processing, value-adding and agribusiness operations. Finance for grain receival facilities, abattoirs, feedlots, packing sheds, cold storage, wineries and other agribusiness infrastructure requires specialist commercial and industrial lending products. We arrange agribusiness finance for the full agricultural supply chain.

Water Entitlements Finance

Water entitlements (water licences or water allocations) are tradeable property rights that represent a valuable capital asset on many Australian farms, particularly in the Murray-Darling Basin and the irrigation districts of Victoria, New South Wales, Queensland and South Australia. Water entitlement values have increased substantially over the past decade with some high-reliability entitlements in the southern Murray-Darling Basin trading at $3,000 to $6,000 per megalitre or higher. Finance for water entitlement purchases is available from specialist rural lenders who understand the water market. Water entitlements can also be used as security for farm business loans in addition to or instead of farmland security.

Seasonal Repayment Structures: Why They Matter in Agricultural Finance

This is one of the most important practical considerations in farm finance and it is consistently underexplained by general business lenders and comparison websites. Farming income is inherently seasonal. A wheat farmer receives the majority of their annual income in December and January when the harvest is sold. A sheep farmer receives wool income at shearing time, typically twice per year. A citrus grower receives income when their picking season concludes. A cattle station that breeds and sells weaners receives income at one or two major sale events per year.

Standard loan products have fixed monthly or fortnightly repayments that take no account of when the borrower actually earns money. A monthly repayment of $15,000 is manageable in December for a wheat farmer who has just sold $2,000,000 worth of grain. The same repayment in September, before a single bushel has been harvested, comes directly from reserves or borrowings. Specialist agricultural lenders offer seasonal repayment structures that align principal and interest payments with the farmer's actual income calendar.

Common seasonal repayment structures

• Annual lump-sum repayment: the full repayment is made once per year at the expected income event. Used for equipment loans aligned to a single crop harvest

• Bi-annual repayment: two repayments per year at the two main income events. Used for dual-crop or dual-enterprise operations

• Interest-only during season, principal at harvest: interest accrues and is paid monthly, principal is repaid in full at harvest

• Seasonal draw and repay: a line of credit is drawn at the start of the season and fully repaid from harvest proceeds, ready to draw again the following season

• Variable repayment schedule: repayments are set at a minimum level during low-income months and a higher level during income months, totalling the annual required repayment

We specifically identify lenders who offer these structures for agricultural applications. A standard non-bank business lender charging daily repayments is not appropriate for a seasonal farming operation. Placing a wheat farmer on daily repayments during the seeding and growing season is a recipe for cash flow crisis. We would never recommend this structure for a seasonal agricultural application.

Government Concessional Loans: The Regional Investment Corporation

The Regional Investment Corporation (RIC) is the Australian Government's primary vehicle for delivering concessional loans to farm businesses affected by drought, natural disaster, biosecurity events and other significant disruptions. RIC loans are not commercial loans. They carry below-market interest rates and flexible terms specifically designed to help farming families rebuild and recover. For farms that qualify, RIC loans can be significantly cheaper than any commercial alternative.

RIC Loan Products Currently Available

Farm Investment Loan

The RIC Farm Investment Loan supports farm businesses to make long-term improvements to their property, infrastructure or management practices following drought, natural disaster, biosecurity events or cumulative events. Eligible uses include water infrastructure, grain storage and handling, farm roads, fencing, land rehabilitation and other permanent capital improvements. The Farm Investment Loan requires demonstration of significant financial impact over two consecutive years. The interest rate is set at below-market concessional levels. Loans up to $2,000,000 are available, secured against farm property.

Drought Loan

The RIC Drought Loan is specifically designed for farm businesses experiencing prolonged and severe drought. It provides finance to manage through drought conditions, cover operating expenses, and prepare for future seasons. The drought period must have affected the farm's ability to generate income and the applicant must demonstrate the financial impact. Concessional rates apply. Maximum loan amounts and current rate details are available directly from the RIC at ric.gov.au.

Drought Hardship Loan (announced December 2025)

In December 2025, the Australian Government announced the Drought Hardship Loan as a new RIC product, providing additional support to farm businesses experiencing acute financial hardship as a result of drought. This product was announced alongside additional $1 billion in new RIC loan funding announced by the Prime Minister in August 2025. For the most current details on the Drought Hardship Loan including eligibility, loan amounts and rates, visit ric.gov.au or contact your local Rural Financial Counselling Service (RFCS).

First Farmer Loan

The RIC First Farmer Loan supports first-generation farm business owners to establish or expand their farming enterprise. It provides concessional finance for first-time farmers who demonstrate the capability and commitment to build a productive agricultural business but who lack the established equity position of multi-generational farming families. This product is specifically designed to address one of the most significant barriers to entry in Australian farming: the substantial capital required to establish a farming enterprise.

AgriStarter Loan

The AgriStarter Loan supports succession planning by providing concessional finance to assist young or beginning farmers who are purchasing a farm from a parent, family member or established operator. Intergenerational farm succession is one of the most financially complex transitions in Australian agriculture, involving tax planning, family equity considerations, property valuations and in some cases competing sibling interests. The AgriStarter Loan reduces the commercial finance burden during this transition. Confirm current eligibility and rates at ric.gov.au.

How to Access RIC Loans

RIC loans are applied for directly through the RIC at ric.gov.au. A commercial finance broker does not arrange RIC loans as they are government-administered. However, RIC loans are often used alongside or to replace commercial finance. We advise on which RIC products may be available to you alongside commercial finance options from our lender panel. We also refer farm clients to the Rural Financial Counselling Service (RFCS) for free, independent assistance with RIC applications and farm financial planning. The RFCS is a free, government-funded service for eligible farmers experiencing financial hardship. Contact the RFCS in your state for assistance.

State Government Agricultural Finance Programs

Each Australian state and territory operates its own agricultural finance and support programs in addition to federal RIC products. These programs change regularly and eligibility criteria vary. The most significant current programs are:

NSW Rural Assistance Authority (NSW RAA)

The NSW RAA administers several low-interest loan programs for NSW primary producers including the Drought Infrastructure Fund (DIF) and Farm Innovation Fund (FIF). The Drought Infrastructure Fund provides loans up to $250,000 at concessional rates for drought preparedness, management and recovery. The RAA also provides natural disaster relief loans and farm debt mediation services. Visit raa.nsw.gov.au for current programs and eligibility criteria.

Queensland Rural and Industry Development Authority (QRIDA)

QRIDA administers a range of low-interest loan programs for Queensland agricultural businesses including drought loans, natural disaster loans and industry development loans. Loan amounts and rates vary by program. Visit qrida.qld.gov.au for current programs.

Primary Industries and Regions SA (PIRSA)

South Australia provides agricultural support through PIRSA including AgriFood Skills SA and various industry development programs. Rural lending in SA is predominantly through commercial lenders and the RIC.

Department of Primary Industries and Regional Development (DPIRD) WA

Western Australia offers primary industry support through DPIRD including Farm Finance WA loan programs, concessional lending for eligible producers and emergency drought and natural disaster support measures. Visit agric.wa.gov.au for current programs.

Agriculture Victoria

Victoria provides agricultural support through Agriculture Victoria including support programs for drought and emergency response. Rural Finance (now Rabobank-managed) historically provided significant concessional lending in Victoria. For current state-based programs visit agriculture.vic.gov.au.

For the most current state-based agricultural finance programs across all jurisdictions, use the Grants and Programs Finder at business.gov.au/grants-and-programs, searching for your state and primary production industry.

The Farm Management Deposit Scheme: How It Interacts With Your Finance

The Farm Management Deposit (FMD) Scheme is one of the most important tax planning tools available to Australian primary producers and it directly interacts with farm financing strategies. Understanding how FMDs and farm loans work together is essential for any farming family's financial planning. As of December 2025, total national FMD holdings stood at approximately $5.96 billion, reflecting widespread use of this scheme across the agricultural sector.

What the FMD Scheme does

The FMD Scheme allows eligible primary producers to deposit pre-tax income from primary production activities during high-income years and withdraw it in future low-income years. Deposits are tax-deductible in the year they are made. Withdrawals become taxable income in the year they are received. This income-smoothing mechanism can materially reduce the tax paid during exceptional years and provide a funded reserve for poor seasons. Deposits must be held for at least 12 months unless early access applies under drought or natural disaster provisions.

Key FMD rules for 2024-25

• Minimum individual deposit: $1,000 (some providers set higher minimums of $5,000)

• Maximum total FMD holdings per individual: $800,000 across all FMD accounts

• Eligibility: individual primary producers (including partners and trust beneficiaries) carrying on a primary production business in Australia

• Non-primary production income limit: taxable non-primary production income must not exceed $100,000 in the year of the deposit

• Companies are not eligible: only individuals, partners and eligible trust beneficiaries

• FMDs cannot be used as security for any loan

• Early withdrawal without losing tax benefit: available for drought (rainfall deficiency below 5th percentile for 6 consecutive months) and certain natural disasters

How FMDs interact with borrowing decisions

The FMD balance can be viewed as a liquid, tax-advantaged reserve that may reduce the amount a farmer needs to borrow during a poor season. A farmer with $200,000 in FMDs from prior good seasons can withdraw those funds during a drought year without triggering a tax liability beyond the income for that year (which is likely to be low anyway). This reduces the need to draw on commercial operating lines or take additional farm debt during the hardship period. Conversely, a farmer who has exhausted their FMD balance and is in financial hardship may be a stronger candidate for RIC concessional loan products. We discuss FMD strategy as part of our broader advice to farming clients, always in conjunction with the client's accountant.

Agricultural Sectors We Finance

Broadacre Cropping (Wheat, Canola, Barley, Sorghum, Cotton)

Broadacre cropping operations in the wheat belt of Western Australia, New South Wales, South Australia, Victoria and Queensland are among the largest farms in Australia by area. Finance needs include large-scale equipment (headers, air seeders, tractors), seasonal operating lines for input costs, grain storage infrastructure and rural property. Seasonal repayment structures aligned to harvest months are essential.

Beef Cattle

Beef cattle enterprises range from extensive northern station operations running tens of thousands of breeding cows to intensive southern backgrounding and finishing operations. Finance includes livestock purchase loans, station property, mustering helicopters, cattle yards and water infrastructure. The Northern Australia Infrastructure Facility (NAIF) may also be relevant for eligible large-scale northern infrastructure projects.

Sheep and Wool

Merino wool producers and prime lamb enterprises finance sheep purchase, wool sheds and shearing equipment, drenching and husbandry equipment, and working dogs. Repayment timing aligns with wool cheques at shearing and lamb income at sale time, typically autumn.

Dairy

Dairy farming is among the most capital-intensive agricultural operations. A mid-sized dairy farm with 400 cows may have $3,000,000 to $6,000,000 in machinery, infrastructure and livestock assets. Milking shed upgrades, effluent management systems, automatic cup removers, herd management technology and replacement heifer programs all require ongoing capital investment. Seasonal cash flow is more consistent than dryland cropping but irrigation costs and fodder expenses are significant.

Horticulture (Fruit, Vegetables, Nuts)

Horticulture finance includes orchard and vineyard establishment loans (where income is deferred for 3 to 7 years while trees or vines mature), packing shed and cool room infrastructure, irrigation systems, picking and harvesting equipment, and seasonal labour costs. Fruit industry bodies including Apple & Pear Australia, Citrus Australia and Avocados Australia can provide industry-specific financial planning guidance.

Viticulture and Wine

Vineyard development and winery equipment finance is well established in South Australia, Victoria, Western Australia and New South Wales. Vineyard establishment including irrigation, trellising and vine purchase is a long-term capital project. Winery equipment including presses, tanks, barrels and bottling lines involves significant capital. Some wineries straddle primary production and agribusiness processing: we arrange finance for both aspects.

Aquaculture

Australian aquaculture is a growing sector producing oysters, mussels, abalone, Atlantic salmon, barramundi, prawns and other species. Finance includes hatchery equipment and pond construction, cage systems and pontoons, water quality monitoring systems, harvesting equipment, processing and cool chain equipment and vehicles. The RIC Farm Investment Loan explicitly includes aquaculture as an eligible industry.

Sugarcane

Sugarcane production in Queensland involves specialised harvesting equipment and a direct relationship with sugar mills for crushing and processing. Finance includes harvesters, billetters, tractors, cultivating equipment and plant assets. The seasonal nature of sugarcane income (one harvest per year) makes seasonal repayment structures essential.

Intensive Animal Production

Poultry broiler and layer operations, pig enterprises and feedlots involve substantial shed infrastructure, feed systems, climate control equipment and biosecurity infrastructure. Finance for shed construction and upgrade, feed mill equipment and intensive livestock systems is arranged through commercial and agribusiness lenders.

Farm Finance for Succession and Intergenerational Transfer

One of the most financially complex challenges in Australian agriculture is the intergenerational transfer of a farming property from one generation to the next. Average farmland values have increased substantially over the past decade. A family farm that was worth $500,000 in 2010 may now be worth $2,000,000 to $5,000,000 depending on location, size and water entitlements. This wealth accumulation is positive for the retiring generation but creates substantial finance requirements for the next generation taking over.

The core finance challenge in farm succession

A farm child taking over the family property faces one or more of the following scenarios: purchasing the property at or near market value, which requires either significant finance or a below-market family transaction with gift tax implications; buying out siblings who have an equal legal claim to the estate; funding retirement income for the outgoing generation while simultaneously running the farm; and managing the capital improvements needed to make the farm productive under the incoming operator's management approach.

Finance tools for farm succession

• The RIC AgriStarter Loan: concessional finance specifically for farm succession transactions, particularly first-generation farmers buying from family

• Vendor finance: the retiring generation effectively lends part of the purchase price to the incoming generation, repaid over time

• Staged transfer: the property is transferred in stages over several years, reducing the single-year capital requirement

• Family trust structures: the property is held in a family trust, with the incoming generation as trustee and beneficiaries adjusted over time

• Commercial rural property loans: market-rate secured lending against the property value

Farm succession finance intersects with estate planning, capital gains tax, stamp duty and family law considerations. We strongly recommend that farming families seek specialist advice from an agricultural accountant and a rural law practitioner with specific farm succession experience before structuring any succession transaction. Our role is to arrange the finance component once the structure is determined.

The Rural Financial Counselling Service: A Free Resource

The Rural Financial Counselling Service (RFCS) is a government-funded, free and confidential financial counselling service for eligible farmers, fishers and small rural businesses experiencing financial hardship or uncertainty. RFCS counsellors are trained professionals who can help with business planning, cash flow analysis, debt negotiations with lenders, applications for government assistance programs including RIC loans, and referrals to other support services.

The RFCS is an entirely free service funded by the Australian Government and relevant state governments. It is not a lending service and does not arrange finance. It is a planning and advocacy resource. If you are a farming business experiencing financial difficulty or uncertainty, the RFCS is one of the most valuable resources available to you and should be the first call you make before approaching any commercial lender.

RFCS contact by region

• Northern region NSW and Queensland: 1800 344 090

• Southern and Central region NSW: 1800 319 458

• Victoria: 1800 201 007

• South Australia and Northern Territory: 1800 182 930

• Western Australia: 1800 612 004

• Queensland: 1800 177 999

• Tasmania: 1800 024 140

We refer farm clients to the RFCS where we believe free counselling services may assist their situation before or alongside commercial finance. Being honest about this resource is consistent with our commitment to genuinely serving farming clients rather than simply arranging finance at every opportunity.

Agricultural Loan Details

Loan Amounts

We arrange agricultural finance from $5,000 for small equipment purchases and livestock trading up to $10,000,000 and above for large property acquisitions, WIWO farm purchases and major infrastructure projects. The most common agricultural finance applications range from $50,000 to $2,000,000. Seasonal operating lines typically range from $50,000 to $500,000 depending on the scale of the cropping or horticultural operation.

Loan Terms

Agricultural equipment finance (chattel mortgage): 1 to 7 years. Seasonal operating loans: 6 to 12 months with annual renewal. Livestock trading loans: aligned to the production cycle, typically 3 to 12 months. Rural property loans: 5 to 30 years from specialist agricultural lenders. Farm development and infrastructure loans: 3 to 10 years. RIC concessional loans: up to 10 years with interest-only periods available.

Interest Rates

Agricultural equipment finance (chattel mortgage): from approximately 7.50% per annum for well-qualified farming operators. Seasonal operating loans: from approximately 8.00% to 14% per annum depending on security and operator profile. Rural property loans: from approximately 6.50% to 9.50% per annum from specialist agricultural lenders depending on LVR and operator profile. Livestock loans: from approximately 8.00% to 15% per annum. RIC concessional loans: below-market rates set by the government, current rates available at ric.gov.au. Rates vary significantly with security, trading history, commodity sector and individual operator profile.

Seasonal Repayments

Specialist agricultural lenders offer repayment structures aligned to farming income calendars. Annual, bi-annual, harvest-aligned and seasonal draw-and-repay structures are available. This is a critical differentiator from standard business loan products and we specifically identify lenders offering these structures for every agricultural application.

Approval and Funding Speed

Agricultural equipment finance with full documentation: 24 to 48 hours for established farming operators with clean credit. Seasonal operating loan renewals for existing customers: 48 to 72 hours. New seasonal facility applications: 3 to 10 business days. Rural property loans: 3 to 8 weeks due to property valuations. RIC concessional loan applications: 4 to 12 weeks due to government assessment processes.

Frequently Asked Questions About Farming and Agriculture Loans in Australia

What types of farming can get agricultural finance in Australia?

All types of primary production recognised under the ANZSIC classifications are eligible for agricultural finance in Australia. This includes cropping (wheat, barley, canola, sorghum, cotton and other grains and oilseeds), beef and sheep grazing, dairy, horticulture (fruit, vegetables, nuts), viticulture, sugarcane, intensive animal production (poultry, pigs), aquaculture, beekeeping and apiculture, and pastoral enterprises. Specific loan products vary by sector, reflecting the different income patterns, asset profiles and risk characteristics of each agricultural type.

Can I get farm equipment finance with no deposit?

Yes. No-deposit agricultural equipment finance is available from some lenders for established farming operators with strong trading history, property security and clean credit. For new farming businesses or operators with limited security, a deposit of 10% to 20% is typically required. Equipment finance for farming is one of the most accessible forms of farm finance because the equipment itself provides security for the loan, reducing the lender's reliance on the farm's cash flow history alone.

What is a seasonal operating loan and how does it work?

A seasonal operating loan is a short-term credit facility drawn at the start of a farming season to fund input costs including seed, fertiliser, chemicals and contracting, and repaid in full from harvest proceeds at the end of the season. The loan is typically a revolving line of credit that is drawn and repaid on an annual cycle. Interest accrues during the season on the drawn balance. For a winter cropping operation in Western Australia, the loan is drawn in April and May (seeding time) and repaid in December and January (harvest time). For a summer-dominant irrigation farmer, the cycle aligns with different months. We structure seasonal loans around your specific production calendar.

What is the Regional Investment Corporation (RIC) and are my farm eligible?

The Regional Investment Corporation is the Australian Government body that administers concessional (below-market rate) farm business loans. RIC loans are available to eligible farm businesses and farm-related businesses that have experienced significant financial impact from drought, natural disaster, biosecurity events, market closures or cumulative events. Eligible industries include agriculture, horticulture, pastoral, beekeeping (apiculture) and aquaculture. The farm business must be wholly operated within Australia, be registered for GST and operate as a sole trader, trust, partnership or private company. RIC loans are applied for directly through ric.gov.au. As of December 2025, RIC offers the Farm Investment Loan, Drought Loan, Drought Hardship Loan (newly announced), First Farmer Loan and AgriStarter Loan.

Can I get a loan to buy livestock for my farm?

Yes. Livestock loans are available for all types of farm animals including cattle, sheep, goats, pigs, dairy cattle, horses and other species. The loan is typically secured against the livestock being purchased, assessed on current livestock market values. Short-term trading livestock loans aligned to the production cycle (typically 90 to 180 days for trading cattle) are the most common structure. Longer-term loans are appropriate for breeding stock held as capital assets. Seasonal repayment structures aligned to sale or income events are available from specialist agricultural lenders.

What is the Farm Management Deposit Scheme and should I use it?

The Farm Management Deposit (FMD) Scheme allows eligible individual primary producers to deposit pre-tax income from primary production into tax-deductible FMD accounts in high-income years and withdraw it as taxable income in low-income years. The maximum individual holding is $800,000 across all FMD accounts. FMDs are not loans but they directly interact with borrowing strategy: building FMD reserves during good years reduces the need to borrow during poor years. FMDs cannot be used as security for any loan. Whether the scheme is right for your operation depends on your income level, tax position and cashflow management strategy. Discuss FMD use with your agricultural accountant. As of December 2025, total national FMD holdings were approximately $5.96 billion, reflecting widespread use.

Can I finance water entitlements for my farm?

Yes. Water entitlement purchases are financed by specialist rural lenders. Water entitlements (water licences and allocations) are tradeable property rights that represent genuine capital assets on many Australian farms, particularly in the Murray-Darling Basin. Some high-reliability entitlements in the southern Murray-Darling trade at $3,000 to $6,000 per megalitre or higher, making water entitlement purchases a significant capital transaction. Water entitlements can also be used as security for farm business loans alongside or instead of farmland.

How does interest-only work on a farm loan?

An interest-only period on a farm loan means you pay only the interest component of the loan for a defined period, with no principal reduction. This reduces repayments during the interest-only period and is used in farm finance to provide financial breathing space during establishment periods, property development phases, or hardship periods. After the interest-only period ends, the loan reverts to principal and interest repayments, which are higher because the principal has not been reduced. Interest-only is also available on some RIC concessional loans. Lenders assess interest-only applications carefully: it is not a license to indefinitely defer repayment.

Can I get farm finance as a first-time farmer?

Yes, though with specific considerations. First-time farmers without an established farming track record are assessed primarily on their relevant agricultural experience, the viability of the property and operation being financed, their personal financial position, and the deposit or equity they bring to the transaction. The RIC First Farmer Loan provides concessional finance specifically for first-generation farm business owners. Equipment finance is typically the most accessible product for first-time farmers as the equipment itself provides security. Rural property purchases by first-time farmers typically require higher deposits of 30% to 50% from specialist lenders.

What does a walk-in walk-out (WIWO) farm purchase involve?

A walk-in walk-out (WIWO) farm purchase involves acquiring a complete operational farm including the land, all buildings and infrastructure, all plant and equipment, all livestock, all stored produce and any input stocks. The purchase price reflects all of these components combined. Finance for a WIWO purchase requires specialist agricultural lenders who can assess and value all components simultaneously, including livestock by independent valuation, equipment by market valuation and improvements by rural property valuers. WIWO purchases are complex but they allow the buyer to commence farming operations immediately without the time and cost of establishing an operation from scratch.

Can I get farm finance as a sole trader?

Yes. Sole traders are eligible for all forms of agricultural finance including equipment chattel mortgage, livestock loans, seasonal operating lines and rural property loans. Sole traders are assessed on their individual farming and financial profile. For larger facilities above $500,000, a sole trader may be required to provide additional security or financial documentation compared to a structured farming company or trust. Most family farms in Australia operate through family trusts or companies, and we advise on optimal borrowing structures in consultation with the client's accountant.

How do I apply for a farm business loan?

For a standard agricultural equipment or livestock loan: contact us by phone at 1300 194 926, by email, or by booking a call. We assess your farming operation, the loan purpose, your existing security position and your income profile. We identify the most appropriate lender and product, assist with documentation and manage the application through to settlement. For RIC concessional loans, we advise on eligibility and refer you to ric.gov.au and the RFCS for the application process. For seasonal operating loans, contact us well in advance of seeding or planting time so we have time to arrange the facility before input costs arise.

Are farm loans tax deductible?

Interest on a farm business loan used for income-producing agricultural purposes is generally tax deductible as a business expense under Australian tax law. This applies to interest on equipment finance, livestock loans, seasonal operating lines, and rural property loans where the property is used for income-producing primary production. The deductible component is the interest, not the principal. For equipment purchased under a chattel mortgage, depreciation and the instant asset write-off may also be available depending on current thresholds. Always confirm the tax treatment of specific farm finance with your agricultural accountant.

What is agistment finance and can I get a loan for it?

Agistment is the practice of placing livestock on another person's land under a fee arrangement, where the landowner provides grazing in exchange for an agistment fee. Agistment finance typically refers to a short-term livestock loan that enables a farmer to move cattle or sheep to agistment country during drought or feed shortages, covering the cost of freight, agistment fees and livestock purchase or retention during the agistment period. Seasonal and short-term livestock facilities can be structured to fund agistment arrangements. Discuss your specific agistment finance need with us at the time of your enquiry.

Why Choose Australian Finance & Loans for Your Farm Finance

• Independent broker: we compare 50+ lenders including Rural Bank, Rabobank, NAB Agribusiness, ANZ Agribusiness, Westpac Agribusiness and specialist non-bank agricultural lenders

• Full product range: equipment, livestock, seasonal operating, crop input, rural property, WIWO purchase, water entitlements and agribusiness finance

• Seasonal repayment specialists: we only recommend seasonal repayment structures appropriate for your specific farming calendar, never standard daily or monthly products for seasonal operations

• RIC and government program knowledge: we advise on RIC eligibility and refer to RFCS free counselling services where appropriate

• FMD awareness: we discuss Farm Management Deposit strategy in the context of your borrowing decisions, always alongside your accountant

• Sector expertise: we understand the income patterns, asset profiles and risk characteristics of cropping, livestock, horticulture, dairy, aquaculture and all other agricultural sectors

• WIWO experience: specialist farm purchase finance including walk-in walk-out and farm succession transactions

• Low-doc options: bank statement and BAS-based assessment for farming operators without formal financial statements

• Fast for time-critical purchases: equipment and livestock saleyard purchases often have short settlement windows

• Melbourne-based team with national reach: we serve farming clients from the Kimberley to Cape Grim and everywhere between