Finimpact

Conclusion

Farm equipment financing is an option for farmers that want to buy new farm equipment and who need to spread the cost of that equipment over the course of months or years. While it can be more expensive than leasing, it lets you own your equipment, which can be good if you plan to keep that equipment for a long time.

FAQ

Are farm equipment loans hard to get?
No, farm equipment loans are usually not hard to get or qualify for because the equipment serves as collateral for the loan.
Equipment financing or leasing: which one is better for farm equipment?
Financing and leasing both have pros and cons. Leasing is generally cheaper, but financing gives you the opportunity to eventually own the equipment.
How much does farm equipment financing cost?
The cost of farm equipment financing depends on the cost of the equipment and the interest rate. The more you finance and the higher the rate, the costlier the loan.
What are average equipment financing interest rates?
Farm equipment financing rates range from 4% to 7% for borrowers with strong credit.
How long can I finance farm equipment?
Many lenders will let you finance farm equipment for between two and seven years.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

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