Agricultural equipment financing covers the full farm fleet: tractors ($30K–$500K), combines ($300K–$800K), sprayers ($150K–$500K), planters ($100K–$400K), balers + hay equipment ($30K–$150K), grain carts + bin systems, and precision-ag technology (GPS, RTK, yield monitors). Three main lender channels: Farm Credit System (member-owned cooperative, 6–8% rate), OEM captives (John Deere Financial, Case IH Capital, AGCO Finance, Kubota Credit — often 0% to 2.99% promo on new), and USDA FSA loan programs (guaranteed or direct, beginning-farmer-friendly). 600+ FICO typical, 5–10% APR, 36–84 month terms, 0–20% down. Seasonal payment schedules aligned to harvest are negotiable.
Agricultural equipment financing is the oldest, deepest equipment lending category in the U.S. — Farm Credit System has been lending to farmers for over a century, and the major OEM captives have decades of specialty programs aligned to crop cycles, farm operations, and the unique seasonality of ag cash flow. This guide covers what financing actually looks like for farmers in 2026 across the three main channels. For the broader hub see equipment financing.
Equipment Cost Ranges
| Equipment | New | Used (5–10 yr) |
|---|---|---|
| Utility tractor (50–100 HP) | $30K–$80K | $15K–$50K |
| Row-crop tractor (150–300 HP) | $150K–$350K | $80K–$220K |
| High-HP 4WD tractor (400+ HP) | $400K–$700K | $220K–$450K |
| Combine harvester | $400K–$800K | $180K–$500K |
| Corn / draper header | $60K–$150K | $25K–$90K |
| Self-propelled sprayer | $300K–$500K | $140K–$320K |
| Planter (12–36 row) | $150K–$400K | $60K–$220K |
| Large square baler | $80K–$150K | $35K–$85K |
| Grain cart (1,000–1,500 bu) | $60K–$120K | $25K–$65K |
Farm Credit System
The Farm Credit System is a network of member-owned cooperatives that's been lending to farmers since 1916. Regional cooperatives serve different geographies:
- CoBank — national wholesale + ag retail
- Farm Credit Mid-America — Indiana, Kentucky, Ohio, Tennessee
- AgCountry Farm Credit Services — Minnesota, North Dakota, Wisconsin
- AgFirst Farm Credit Bank — Southeast U.S.
- Farm Credit West, Farm Credit East, Compeer Financial, AgWest Farm Credit, GreenStone Farm Credit Services — regional cooperatives by geography
Farm Credit rates: 6–8% on equipment, similar on operating lines. Members participate in patronage refunds — effectively lowering net cost by 1–2% in good years.
OEM Captives
- John Deere Financial — largest ag captive lender. Promo rates as low as 0% on new equipment 2–4 times per year.
- Case IH Capital (CNH Industrial Capital) — Case IH and New Holland brands. Strong on row-crop equipment.
- AGCO Finance — Massey Ferguson, Challenger, Fendt brands.
- Kubota Credit — compact and utility tractors, kabota brand specialty.
- Mahindra Finance — subcompact and utility tractors.
USDA Farm Service Agency Programs
FSA programs target farmers who can't access conventional commercial credit:
- Direct Farm Operating Loans: Up to $400K for equipment, livestock, operating expenses. Direct from FSA, 7-year term, ~5% rate.
- Guaranteed Farm Operating Loans: Up to $2.25M through a commercial bank with FSA guarantee. Bank rate, FSA reduces the bank's risk.
- Microloans: Up to $50K, simplified application. Good for beginning farmers, small specialty ops.
- Beginning Farmer + Socially Disadvantaged Farmer set-asides: Reduced equity requirements (down to 5%), priority allocation.
Seasonal Payment Structures
Most ag lenders offer payment schedules aligned to crop cash flow:
- Annual payment: One payment per year after harvest. Common on row-crop equipment.
- Semi-annual payment: Two payments per year aligned to corn + soybean cash cycle.
- Skip-payment: 1–3 "skip" months per year. Standard structure has lower payments in pre-harvest months, higher post-harvest.
- Monthly payment: Standard structure; works for diversified or livestock operations with consistent revenue.
Next Step
Get matched with ag equipment lenders — Farm Credit, OEM captives, FSA-experienced banks. See also Section 179 tax strategy 2026 and logging & forestry equipment.
A worked example: financing a combine
Take a grower financing a $250,000 combine with 15% down, leaving $212,500 over 60 months. Ag lenders — Farm Credit System institutions, OEM captives like John Deere Financial, and banks — often structure these with annual or semi-annual payments timed to the harvest and marketing year rather than flat monthly bills, so the payment lands when grain is sold. At competitive ag rates the annual payment runs in the low-to-mid five figures, and the equipment is Section 179 eligible, so a profitable operation may expense a large share in the purchase year. The USDA Farm Service Agency also guarantees or directly lends on farm equipment for operations that need it.
Frequently Asked Questions
Can you finance tractors and combines?
Yes. Farm Credit System lenders, OEM captives like John Deere Financial and Case IH, banks, and the USDA FSA all finance ag equipment, often over 48–84 months with seasonal payment options.
Can I get seasonal payments on farm equipment?
Yes. Ag loans commonly use annual or semi-annual payments tied to the harvest and marketing year, matching the cash flow of a farm rather than charging flat monthly bills.
What USDA programs help finance farm equipment?
The USDA Farm Service Agency offers guaranteed and direct farm operating and ownership loans that can fund equipment, which helps operations that cannot fully qualify with a commercial lender.
Is farm equipment Section 179 eligible?
Generally yes — tractors, combines, and most farm machinery qualify for Section 179 and bonus depreciation, so a profitable operation may expense a large share in the placed-in-service year. Confirm with your accountant.
Frequently Asked Questions
How do farmers finance equipment?
Three main paths. Farm Credit System (CoBank, Farm Credit Mid-America, AgFirst, AgCountry, etc.) is the largest ag lender — member-owned cooperative offering competitive rates and ag-cycle-aware terms. OEM captive financing (John Deere Financial, Case IH Capital, AGCO Finance, Kubota Credit) often runs 0% or 0.99% promotional rates on new equipment. Generalist equipment lenders compete on used equipment and challenged credit.
What are typical ag equipment financing rates?
Ag equipment is among the cheapest equipment financing categories — 5–10% APR typical, often lower with OEM captive promotional offers (0% to 2.99% on new equipment). Farm Credit System rates run 6–8% on equipment. The relatively low rates reflect ag's strong collateral retention (used equipment holds value well) and Farm Credit's cooperative structure that returns earnings to borrowers.
What credit score is needed for farm equipment financing?
600+ FICO qualifies most established farmers. 680+ gets best rates. Farm Credit System and OEM captives are flexible on credit if the borrower has farm operating history (5+ years) and prior equipment ownership. New or returning farmers benefit from USDA Farm Service Agency (FSA) guaranteed loan programs with reduced equity requirements.
Can I finance equipment through the Farm Service Agency (FSA)?
Yes — FSA Farm Operating Loans and Microloans can finance equipment for farmers who don't qualify for conventional commercial credit. Direct loans from FSA up to $400K; guaranteed loans through banks up to $2.25M. Best for beginning farmers, socially disadvantaged farmers, or those with limited equity. Rates lower than commercial; longer application timeline (60–120 days).
Should I buy or lease farm equipment?
Buy if running equipment 8–15 years. Most ag equipment holds value well, so equipment loans with Section 179 deduction win on after-tax cost. Lease if refreshing every 3–5 years (some operations rotate combines and tractors on shorter cycles for warranty + tech currency). OEM operating leases often $0 down for established farmers.