Complete Financing Guide

Agricultural Equipment Financing

Q: What are the monthly payments on a new John Deere combine?

A new John Deere S780 combine priced at $525,000 financed over 84 months at 6.5% APR through equipment lenders runs approximately $7,928/month. The flagship X9 1100 at $650,000 over 84 months runs approximately $9,808/month. equipment lenders frequently offers promotional 0% or low-rate financing at planting and harvest season, which can significantly reduce these payments for qualified buyers.

Q: Is it better to finance through equipment lenders or a bank?

equipment lenders and other OEM programs often have promotional rates (0% for 12-24 months, or low fixed rates on current-model equipment) that commercial banks cannot match. However, after the promotional period, OEM financing rates may reset higher. For large purchases like combines ($400K+), it's worth getting quotes from both the dealer finance arm and from Farm Credit, AgDirect, or a local ag-focused bank. The best deal often depends on the promotion running at the time of purchase.

Q: Can a new farm operation finance equipment?

New farming operations face more challenges getting equipment financing. The most accessible paths are: (1) FSA Beginning Farmer loans, which offer below-market rates and more flexible underwriting; (2) Equipment-specific lenders who value the machinery as collateral; (3) Dealer programs that emphasize down payment (20-30%) over business history. Most lenders want to see at least one year of farm income history or strong personal financial strength to replace business history.

Q: Does Section 179 apply to farm equipment?

Yes, farm equipment qualifies for Section 179 expensing. Tractors, combines, planters, sprayers, grain bins, and most other farm machinery qualify. For 2024, the limit is $1,220,000. Farmers also benefit from additional first-year depreciation rules specific to agricultural property. Grain bins and irrigation systems may qualify as single-purpose agricultural structures. Consult your farm tax advisor or CPA for specifics on your situation.

Q: What is the difference between ag equipment financing and an FSA loan?

FSA (Farm Service Agency) loans are USDA government programs with subsidized rates, designed for beginning farmers, farmers who can't get conventional credit, and emergency situations. FSA Direct Loans are made by the government; FSA Guaranteed Loans are made by commercial lenders with government guarantees. Equipment-specific financing (from dealers, banks, Farm Credit) is commercial financing without government involvement. FSA rates are often below market but involve more paperwork and eligibility requirements. Many farmers use commercial equipment financing for routine purchases and FSA programs for larger expansions.

Q: How does financing a $600,000 combine harvester work?

Financing a $600,000 combine typically requires: 680+ credit score (or strong business financials), 2-3 years of farm tax returns, 10-20% down payment ($60,000-$120,000), and 60-84 month loan term. equipment lenders, equipment lenders, and AgDirect (Farm Credit) are the primary lenders for large combines. Annual payment structures aligned to harvest are available. The combine itself serves as collateral — major brand combines (John Deere, Case IH, New Holland) hold 40-60% of value after 5-7 years, supporting strong collateral positions for lenders.

From a $15,000 compact utility tractor to an $860,000 John Deere X9 combine. From center pivot irrigation to grain bin systems. This guide covers financing options, manufacturer programs, seasonal payment structures, and FSA loan programs for every type of farm equipment.

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$5K–$860K+Equipment Price Range

36–96 moTypical Loan Terms

10–20%Typical Down Payment

SeasonalPayment Programs Available

Key Facts: Agricultural Equipment Financing

Price Range$5,000 – $860,000+

Top BrandsJohn Deere, Case IH, New Holland, Kubota, AGCO

OEM Financingequipment lenders, equipment lenders, AGCO Finance

Loan Term36–96 months; seasonal programs available

Credit Score600+ preferred; Farm Credit flexible

Special ProgramsFSA Beginning Farmer loans, Farm Credit

Overview

Agricultural Equipment Financing: What Sets It Apart

Agricultural equipment financing differs from other commercial equipment lending in several important ways. Farm income is inherently seasonal — most revenue arrives at harvest, creating cash flow patterns that standard monthly payment schedules don't accommodate well. OEM manufacturers (John Deere, CNH Industrial, AGCO) recognized this decades ago and built seasonal payment programs, annual payment options, and 0% promotional financing into their dealer finance arms specifically for farmers.

Farm Credit Services and AgDirect are the other major players in agricultural finance. Farm Credit is a government-sponsored enterprise (GSE) specifically chartered to serve agriculture, and its cooperative structure enables member farmers to access below-market rates and specialized agricultural lending expertise. AgDirect is Farm Credit's equipment-specific lending arm, competing directly with dealer finance programs on tractors, combines, and planters.

The collateral picture for agricultural equipment is generally favorable. Major-brand farm equipment — John Deere and Case IH especially — holds value extremely well. A well-maintained John Deere 8R tractor or S780 combine typically retains 50–65% of its original value after 5 years. This strong collateral position gives lenders confidence, and it's one reason agricultural equipment financing is accessible even for farmers with below-average credit scores when their equipment and income history are strong.

Equipment Prices & Terms

Farm Equipment Financing by Type

Equipment Type	Price Range (New)	Top Brands	Typical Term
Compact Tractors under 50 HP	$15K–$60K	Kubota BX/B/L series, John Deere 1/2/3 series, Mahindra eMax/Max, Kioti CK/DK, LS Tractor MT	36–72 mo
Utility Tractors 50–100 HP	$35K–$100K	John Deere 5045E–5115M, Kubota M5–M7, New Holland T5–T6, Massey Ferguson 5700, Case IH Farmall	36–84 mo
Mid-Range Tractors 100–200 HP	$80K–$200K	John Deere 6105R–6250R, Massey Ferguson 7700, New Holland T7, Case IH Puma 150–240, Fendt 700 Vario	36–84 mo
Large Row Crop 200–350 HP	$200K–$450K	John Deere 8R 230–8R 410, Case IH Magnum 250–340, New Holland T8, Fendt 900 Vario	48–84 mo
4WD Articulated 350–700+ HP	$350K–$700K	John Deere 9R 440–9RX 640, Case IH Steiger 350–620, New Holland T9, Fendt 1000 Vario, Versatile 310–610	48–84 mo
Combine Harvesters Small	$250K–$450K	John Deere S660/S670/S760/S770, Case IH AF7140/8140, New Holland CR7.90/8.90, CLAAS LEXION 650	60–84 mo
Combine Harvesters Large	$450K–$860K+	John Deere X9 1000/1100, S780/S790, Case IH AF9240/8250, New Holland CR10.90, CLAAS LEXION 8900	60–96 mo
Row Crop Planters	$50K–$400K	John Deere DB44/DB60/DB80, Kinze 3660/4900, Case IH Early Riser 2150/2160, White Planter 9000	48–72 mo
Self-Propelled Sprayers	$200K–$700K	John Deere R4045/R4060, Case IH Patriot 2250/3250/4450, New Holland Guardian SP, HAGIE STS12	60–84 mo
Pull-Type Sprayers	$15K–$80K	Ag-Chem (AGCO), Summers Supersprayer, John Deere 40, Bestway, Great Plains	36–60 mo
Round Balers	$20K–$100K	John Deere 450M–590M, New Holland Roll-Belt 450–560, Vermeer 504/605 Premium, CLAAS Rollant 455	36–60 mo
Large Square Balers	$60K–$200K+	John Deere L341R, Case IH LB434R, New Holland BB960A/BB1290, CLAAS Quadrant 5300, Krone Bigpack	48–72 mo
Grain Augers	$5K–$50K	Westfield MK/WR series, Meridian, Brandt Hi-Cap, Hutchinson, Brock	24–48 mo
Grain Dryers	$20K–$250K	GSI/AGCO Tower dryers, Sukup SuperB, Shivvers Rack & Return, Farm Fans	48–72 mo
Grain Bins	$10K–$500K	GSI (AGCO), Brock (CTB Inc), Sukup Manufacturing, Chief Industries, Butler Manufacturing	60–84 mo
Center Pivot Irrigation	$50K–$400K	Valley 8000 series, Reinke 3000 series, T-L Irrigation, Lindsay Zimmatic, Pierce GPS	60–120 mo
Vertical Tillage	$20K–$80K	Sunflower (AGCO) 1435/1445, Salford I-1100/RTS, Kuhn Krause Excelerator 8010	36–60 mo
Strip Till / No-Till	$30K–$200K	Great Plains 3NYTS, Case IH 870/1020, John Deere 2510S, Dawn Equipment 2000, Yetter 3500	36–60 mo
Fertilizer Applicators	$15K–$150K	New Leader NL4000G5, Vicon Rotaflow, Amazone ZA-V, KUHN Axis	36–60 mo
Poultry / Hog Confinement	$50K–$1M+	Big Dutchman, Chore-Time, Roxell, Hog Slat, Cumberland	60–120 mo

Manufacturer Overview

Farm Equipment Brands by Country of Origin

John Deere🇺🇸 Moline, IL — USA

World's largest agricultural equipment manufacturer. equipment lenders offers highly competitive seasonal programs. JD equipment has the strongest resale values in North America.

Case IH🇺🇸 Racine, WI — USA (CNH Industrial)

American brand under CNH Industrial. Case IH Magnum tractors and Axial-Flow combines compete directly with John Deere across all size classes.

New Holland Agriculture🇺🇸 New Holland, PA — USA (CNH Industrial)

CNH sister brand to Case IH. New Holland T9 four-wheel drives and CR combines are widely used. equipment lenders provides financing for both brands.

Kubota🇯🇵 Osaka, Japan

Japanese manufacturer dominant in compact and utility tractor market. Kubota BX and L series are the most popular compact tractors in North America.

AGCO Corporation🇺🇸 Duluth, GA — USA

American company owning Massey Ferguson, Fendt, Challenger, GLEANER, and other brands. AGCO Finance provides multi-brand dealer financing.

Fendt🇩🇪 Marktoberdorf, Germany (AGCO)

German precision agricultural brand. Fendt Vario CVT tractors command premium prices and are especially popular in specialty crops and precision farming.

CLAAS🇩🇪 Harsewinkel, Germany

German family-owned company producing LEXION combines (world's highest capacity combine), Jaguar forage harvesters, and Xerion tractors.

Kinze Manufacturing🇺🇸 Williamsburg, IA — USA

Iowa-based row crop planter manufacturer. Kinze planters are used on millions of acres of corn and soybeans annually. Family-owned since 1965.

Great Plains🇺🇸 Salina, KS — USA

Kansas manufacturer of tillage tools, planters, and drills. Great Plains YP planters and Turbo-Max vertical tillage tools are widely used on Great Plains farms.

Valley / Valmont🇺🇸 Valley, NE — USA

Nebraska manufacturer of center pivot irrigation. Valley is the world's largest center pivot manufacturer. Valmont Industries publicly traded (VMI).

Sukup Manufacturing🇺🇸 Sheffield, IA — USA

Iowa manufacturer of grain bins, grain dryers, and handling equipment. Sukup is the world's largest family-owned grain bin manufacturer.

Mahindra USA🇮🇳 Mumbai, India

India's largest tractor brand by volume, second globally. Mahindra tractors offer exceptional value in the 25-100 HP range with strong dealer support across the US Southeast.

Financing Programs

OEM Farm Equipment Financing Programs Compared

Program	Brands Covered	Best For	Key Advantage
equipment lenders	John Deere only	Deere buyers with 650+ credit	Seasonal programs, 0% promo offers
equipment lenders	Case IH + New Holland	CNH brand buyers	Multi-brand coverage, seasonal options
AGCO Finance	Massey, Fendt, Challenger	AGCO brand buyers	European brand specialist programs
Farm Credit / AgDirect	All brands	Established farmers, large purchases	Below-market rates, agricultural expertise
Commercial Bank	All brands	Borrowers with strong business credit	Competitive rates if strong financials
Equipment Finance Company	All brands	Startups, lower credit scores	More flexible underwriting

Licensing & Compliance

Agricultural Business Licensing Requirements

USDA Farm Number

Farm Service Agency (FSA) farm number required to participate in USDA programs, commodity loans, and crop insurance. Free to register at your local FSA office.

Pesticide Applicator License

Commercial pesticide application requires state pesticide applicator license. Private applicator (own crops) has lower requirements. EPA regulates under FIFRA; states administer licensing.

CDL for Grain Hauling

Class A CDL required to haul grain semi-trailers over 26,001 lbs GVWR. Agricultural exemptions exist in many states for vehicles operating within 150 miles of the farm.

Organic Certification

USDA National Organic Program (NOP) certification required to sell products as "organic." Certification through USDA-accredited certifiers. 3-year transition period before first organic harvest.

FSMA Produce Safety Rule

FDA Food Safety Modernization Act rules apply to farms with over $25,000 in produce sales. Water testing, hygiene, and recordkeeping requirements. Phased implementation by farm size.

Anhydrous Ammonia License

Many states require anhydrous ammonia handling certification. OSHA Process Safety Management may apply to large operations. Specialized training required for safe handling.

See our complete Agricultural Business Requirements guide for state-by-state details.

Income Potential

Farm Revenue & Income by Operation Size

Small Family Farm

500 acres row crop

$250K–$600K Gross Revenue

$30K–$80K Net Farm Income

Corn/soybean production at $5/bushel corn, 200 bu/acre yield. Thin margins typical. Equipment ownership vs. custom farming decision critical.

Mid-Scale Operation

2,000+ acres row crop

$1M–$3M Gross Revenue

$150K–$500K Net Farm Income

Economies of scale kick in. Full equipment ownership justified. May custom farm for neighbors to offset equipment costs.

Large Commercial Farm

5,000+ acres

$3M–$15M+ Gross Revenue

$500K–$2M+ Net Farm Income

Multiple combines, large equipment fleet. May own storage facilities. Often diversified across multiple crops and geographic areas.

For detailed income analysis, see our Farming Equipment Income guide.

Equipment Financing

0% Down Available on All Brands

Axiant Partners finances all major equipment brands — Caterpillar, Komatsu, John Deere, XCMG, SANY, and 200+ more. 0% down available for qualified borrowers regardless of brand. Terms 36–84 months.

✓ 0% down for qualified borrowers
✓ All brands including XCMG and SANY
✓ New and used equipment
✓ Startups and established businesses
✓ Decision in 24–48 hours

Get Financing Options → 📞 (919) 907-2611

Get a Free Quote in 60 Seconds

Common Questions

Agricultural Equipment Financing — FAQ

What are the monthly payments on a new John Deere combine?

A new John Deere S780 combine at $525,000 financed over 84 months at 6.5% APR runs approximately $7,928/month. The flagship X9 1100 at $650,000 over 84 months runs approximately $9,808/month. equipment lenders frequently offers 0% or low-rate promotional financing at planting and harvest seasons for current-model combines, which can significantly reduce these figures for qualified buyers with strong credit and established farming history.

Can I get seasonal payment structures for farm equipment?

Yes. equipment lenders, equipment lenders, and AGCO Finance all offer seasonal payment programs. Common structures include: skip payments during planting season (March–May), balloon payments aligned to fall harvest (October–December), annual payment programs for one large payment per year, or deferred first payment for 6-12 months. Farm Credit / AgDirect also offers seasonal structures for large purchases. These programs recognize that farm income is concentrated around harvest rather than distributed monthly.

What credit score is needed for agricultural equipment financing?

OEM programs (equipment lenders, equipment lenders) typically work best with 650+ credit scores for competitive rates. Farm Credit and AgDirect are often more flexible for established farmers, focusing on farm income history and assets rather than strictly on credit scores. Alternative agricultural lenders work with scores as low as 580-600, especially when the farm has proven income history in bank statements. The USDA FSA Beginning Farmer loan program specifically accommodates borrowers who can't get conventional credit.

Is it better to finance through equipment lenders or a bank?

equipment lenders and OEM programs frequently offer promotional rates — 0% APR for 12-24 months or special fixed rates on current-model equipment — that commercial banks cannot match at point of sale. For large purchases, it's worth getting quotes from the dealer program, Farm Credit/AgDirect, and a local agricultural bank. OEM promotional rates often win for qualified buyers, but Farm Credit's long-term rates may be better for non-promotional periods. Always compare the total cost of the loan, not just the payment.

Can a new farm operation finance equipment?

New farming operations can access several pathways: (1) USDA FSA Beginning Farmer Direct Loans offer below-market rates with flexible underwriting specifically for new farmers; (2) Equipment-specific lenders evaluate the machinery collateral heavily; (3) Dealer programs with 20-30% down may work for startup situations. Most lenders want at least one year of farm income history, though strong personal financial strength (high net worth, stable off-farm income) can substitute in some programs.

Does Section 179 apply to farm equipment?

Yes — tractors, combines, planters, sprayers, grain handling equipment, and most other farm machinery qualifies for Section 179 expensing up to $1,220,000 in 2024. Grain bins and irrigation systems may qualify as single-purpose agricultural structures under separate depreciation rules. Farmers also benefit from 150% declining balance depreciation on 5-year agricultural property. Consult your farm tax advisor or CPA for specifics — farm taxation has many specialized rules.

What is the difference between ag equipment financing and an FSA loan?

FSA (USDA Farm Service Agency) loans are government programs with subsidized below-market rates, designed for beginning farmers, farmers denied conventional credit, and emergency situations. FSA Guaranteed Loans are commercial loans with government backing. Standard agricultural equipment financing from dealers, banks, and Farm Credit is commercial without government involvement. FSA loans require more documentation and eligibility verification but offer the lowest rates available. Many farms use commercial financing for routine equipment and FSA programs for larger capital investments or startup situations.

How does financing a $600,000 combine harvester work?

Financing a $600,000 combine requires strong documentation: 680+ credit score (or strong farm financials), 2-3 years of farm tax returns showing revenue, 10-20% down ($60,000-$120,000), and 60-96 month loan term. equipment lenders, equipment lenders, and AgDirect are the primary lenders. Seasonal payment structures are commonly available — many farmers make one annual payment after harvest rather than 12 monthly payments. The combine serves as primary collateral; major brand combines retain 40-60% of value after 5-7 years, which supports strong lending terms.

Ready to Finance Your Farm Equipment?

Whether it's a $20,000 utility tractor or a $650,000 combine harvester, explore financing options including OEM programs, Farm Credit, and alternative agricultural lenders.

Explore Agricultural Equipment Financing → 📞 Call (919) 907-2611

Informational resource only. Not an offer of credit or guarantee of approval. Terms vary by lender and equipment type.