Financing for agriculture
Farms and agribusinesses finance equipment and manage revenue that arrives at harvest.
Key points
- Farm income is seasonal, but costs like seed, feed and fuel come early.
- Land and equipment are the biggest investments most farms make.
- Lenders who know agriculture understand harvest-based repayment.
- Government programs can support farm financing, including for new farmers.
How financing works in agriculture
Farming has one of the longest cash cycles of any business. You buy seed, fertiliser, feed and fuel in spring, and may not sell your crop or livestock until fall or later. Equipment and land are major investments that pay back over decades.
Agricultural financing is built around that cycle: operating lines that are repaid after harvest, equipment financing with seasonal payment schedules, and long-term mortgages for land.
Common financing needs
Here’s how businesses in this industry typically match their needs to the right kind of financing.
| What you need | Usually the best fit | Why |
|---|---|---|
| Seed, fertiliser and feed for the season | Lines of credit | Operating credit drawn in spring, repaid after harvest |
| Tractors, combines and equipment | Equipment financing | Payments can often be scheduled to match your harvest |
| Buy land or buildings | Commercial real estate | Long-term financing for land, barns and storage |
| Expand or buy a neighbouring operation | Business acquisition | Grow by acquiring an established operation |
How NorthMerit can help
Apply once and we’ll connect you with one financing partner who works with businesses like yours. It’s free, and there’s no obligation.
What lenders look at
Lenders look at your production history, your yields or herd performance, your marketing plans, and the value of your land and equipment. Crop insurance and contracts with buyers both reduce risk.
Many lenders that specialise in agriculture offer payment schedules timed to your income, such as annual or semi-annual payments.
Other things partners commonly ask about: seasonal revenue cycles; large equipment purchases; input costs before harvest.
Timing payments to the harvest
A grain farm finances a $300,000 combine with annual payments due each November, after the crop is sold.
How to prepare
Have your production records, recent financial statements or tax returns, an equipment list and any marketing contracts ready. For land, include the legal description and recent assessment.
Common questions
Is NorthMerit a lender?
Does it cost anything to apply?
Who will contact me?
Other industries
The right financing, from the right partner.
Apply once. One financing partner who knows businesses like yours. Free, with no obligation.
