Can you finance used farm equipment in Australia?

Yes. Chattel mortgage and hire purchase both work for used machinery bought from dealers, auctions or private sellers, as long as the equipment can be identified and valued. Most lenders cap used equipment at 15 to 20 years old at the end of the loan term.

Is livestock accepted as security for a farm loan?

Some specialist agribusiness lenders take livestock as security through a PPSR registration. They usually want it alongside land or other assets, not on its own, because livestock values move with the market and the season.

Can a new or first-year ABN farming business get equipment finance?

Low-doc loans exist for newer ABNs. But most lenders want at least 12 to 24 months of trading history, or a guarantor with an established credit file, before approving unsecured or high-value machinery finance.

What's the difference between chattel mortgage and hire purchase for farm equipment?

With a chattel mortgage you own the equipment from settlement and the lender registers a PPSR interest. With hire purchase the lender owns it until the final payment clears. Chattel mortgage is now more common because you can claim the GST credit upfront.

Farm Equipment Finance Australia: Complete Guide

What is farm equipment finance?

Farm equipment finance is a loan or lease for machinery and vehicles used in farming. It's secured against the equipment itself, not the farm's land. It covers tractors, harvesters, headers, balers, irrigation systems, utes and specialised attachments. The lender registers a security interest on the PPSR, you keep working the equipment, and the debt sits alongside the farm's normal operating finance instead of against the family title.

That's the machinery side. Agribusiness finance is broader. It also covers land, livestock and the seasonal working capital that carries a farm between harvests. Each has its own structure, its own lenders and its own rate range. Most farm finance conversations go wrong when people treat them as one product.

The four shapes of agribusiness finance

Machinery and equipment finance: a chattel mortgage, hire purchase or lease against equipment that loses value over time. Rates start around 6.59% p.a. as at July 2026 for strong borrowers on new equipment. They go up for used machinery, newer ABNs and non-standard equipment.
Rural property and land finance: commercial mortgages against freehold farmland, usually at lower LVRs than residential property because rural land is harder to value and slower to sell.
Livestock finance: money to build or carry a herd or flock. It's usually secured by a PPSR interest over the livestock plus other assets, since stock numbers and values move with the season.
Seasonal working capital: cashflow finance timed around input costs (seed, fertiliser, fuel) and repaid after the harvest or sale, not on a flat monthly schedule.

Chattel mortgage: the default structure for machinery

With a chattel mortgage you own the equipment from settlement, and the lender registers security on the PPSR until the loan is paid off. It's the standard setup for GST-registered farms buying tractors, headers and harvesters, because you can claim the full GST credit on the purchase price on your next BAS. For tractors in particular, from compact utility models to articulated 4WDs, see our tractor finance guide.

On a $200,000 header, that's about $18,000 back within one BAS cycle instead of spread across the loan term. Assets under $20,000 may also qualify for the instant asset write-off in the 2025-26 income year. That lets an eligible small business (turnover under $10M) claim the full cost straight away instead of depreciating it. If the farm plans to swap equipment every few years rather than run it into the ground, chattel mortgage vs operating lease is the more useful comparison. A lease keeps the asset off the balance sheet, but you never own it.

Land, livestock and equipment sit on different security

Machinery finance is tied to the asset. The lender's risk is the tractor, so approval depends on its age, value and resale market. Land finance is a commercial mortgage based on the property's LVR, the farm's income history and often a valuation that counts water rights, carrying capacity and soil type, not just hectares. Livestock finance sits in between. Some specialist agribusiness lenders will register a PPSR interest over a herd, but most want it paired with land or other security, because a mob's value can swing hard between a good season and a drought year.

Seasonal working capital: matching repayments to the harvest

A dairy or cropping farm doesn't earn evenly across twelve months. A loan with flat monthly repayments whatever the season doesn't fit, and most banks won't fix that on their own. Specialist agribusiness lenders will set repayments quarterly, half-yearly or yearly to line up with harvest, shearing or milk cheques. That's where cashflow finance is worth having in a farm's setup, instead of a generic overdraft.

Government-backed options: where RIC fits

The Regional Investment Corporation runs three loans for primary producers: the Farm Investment Loan, the AgriStarter Loan and the Drought Loan. All are currently at a variable 5.18% p.a., unchanged since August 2024. The Farm Investment Loan lends up to $2M over 10 years, interest-only for the first five years and then principal and interest. RIC loans generally need you to show a commercial lender won't offer similar terms. So they sit alongside a bank or broker application rather than replacing it.

Bank, specialist and RIC: how they compare

These sit within the wider six categories of business lender, but for a farm the shortlist usually comes down to four.

Source	Typical rate	Best for	Turnaround
Major bank agribusiness lending	Sharp on rate, cautious on serviceability	Established farms with strong, even income	Weeks, more paperwork
Specialist asset/agribusiness lenders	From about 6.59% to 7.49% p.a. on machinery	Seasonal income, newer ABNs, used or non-standard equipment	Days
RIC government loans	5.18% p.a. variable	Farms that can show a commercial lender won't match the terms	Weeks, depends on eligibility
Private agribusiness lenders	Roughly 9.5% to 13.5% p.a.	Urgent deals or security a bank won't accept	Days

What lenders actually assess

Whether you can service the loan across seasons, not just on your last BAS. Most agribusiness credit teams average income over two to three years to smooth out a drought or flood year.
The type of security and the age of the asset. New machinery is cheaper to finance than a 20-year-old header. Land finance depends on the valuation, not the purchase price.
ABN and GST history. 12 to 24 months of trading is the usual minimum for a standard-doc approval. Newer farms rely on low-doc loans or a guarantor.
What the money is for. A lender wants to know if it's replacing worn equipment, adding capacity or covering a cash flow gap, because that shapes the right structure.

How long settlement takes

Most machinery finance settles in 3 to 7 business days once documents are signed, assuming a standard asset and a clean credit file. Land-backed rural finance takes longer, usually 4 to 8 weeks, mostly because rural valuations take time. Livestock and working capital facilities are usually closer to the machinery timeline once the security is agreed.

Where a broker fits

A farm might need a chattel mortgage on a new baler, a commercial mortgage on the block next door and a seasonal cashflow facility, all in the same year, from three different types of lender. Aurelius Capital works with major banks, specialist agribusiness lenders, the RIC and private lenders. We structure the deal around the asset and the season instead of pushing every request through one panel. Most farm machinery work runs through our asset finance team.

If you're financing machinery, land or livestock and want a broker's view on structure and which lender fits before you approach anyone, the application form is below. Most enquiries get a reply within four business hours.

Farm equipment finance in Australia: machinery, land, livestock and working capital