Quick answer
Agricultural business loans fund livestock, machinery, seed, fertiliser, fodder and the long gap until harvest or sale. Farm income is seasonal and exposed to weather and prices, so lenders who understand annual cycles, equipment finance on machinery and loans secured by rural or residential property are common alternatives when banks are slow or cautious.
Key points
- Income arrives in seasonal lumps after harvest or sale
- Equipment finance suits tractors, headers and machinery
- Lenders need to see a full year or more of trading
- Property security, including rural land, supports larger needs
Farming cash flow is lumpy by nature
A grazier buys stock and feeds them for months before selling. A grain grower pays for seed, fertiliser and fuel before harvest. A horticulturalist pays seasonal pickers and packers before the produce is sold. Weather and commodity prices can change the outcome of a season overnight. Banks lend to agriculture, but when a season goes wrong or a farm is going through change, approval can slow or stop.
Common funding needs
| Need | Typical option |
|---|---|
| Tractors, headers, utes | Equipment finance |
| Livestock purchases | Short-term or property-secured loan |
| Seed, fertiliser and fuel | Seasonal working capital |
| Fodder and water in a dry year | Short-term loan or secured facility |
| Infrastructure: sheds, yards, irrigation | Property-secured loan |
What lenders want to see
- At least a full year of statements, ideally two, to show the cycle.
- An explanation of any bad season and how the farm recovered.
- Expected sale dates and quantities for stock or crops.
- Existing machinery finance and land loans.
Government support
Concessional loans and grants are available to farm businesses at various times, particularly after drought or natural disasters. They are worth checking first, though they can take time. business.gov.au lists current programs.
An illustrative example
A beef producer in regional New South Wales had the chance to buy a line of breeding cows at a good price after a neighbour reduced numbers. The bank’s process would take weeks. A short-term loan secured over the family’s town house funded the purchase, repaid from the sale of weaners later in the season.
Using property
For larger needs, property-secured loans between $20,000 and $5,000,000 can be secured over residential, commercial or, in many cases, rural property, without a valuation before approval and interest that can be prepaid or added to the loan until the season’s income arrives.
Mistakes we see in farm funding
Funding a full season on short-term facilities that fall due before harvest or sale is the most common problem. Match the repayment date to when income arrives, and keep a buffer for weather and price surprises.
Talk about your season
Send a 60-second enquiry and tell us what you farm and what you need. You can ask with no credit check, a specialist reads it, and there is no lead selling. Fund your season.
Frequently asked questions
Can I finance livestock purchases?
Yes, through short-term loans or property-secured funding repaid when stock is sold.
Can I get a loan after a drought or flood year?
Yes, with an explanation of the impact and evidence of recovery. Property security often helps.
Is rural land accepted as security?
Often, though it may be assessed differently from residential property. Location and access matter.
Are there government programs for farmers?
Yes, including concessional loans and grants at different times. Check business.gov.au and state agriculture departments.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.