Chattel mortgage · Agriculture
Chattel mortgage for agriculture
Agricultural finance is lending structured around a single annual income event, using seasonal repayments, equipment finance for machinery and working capital that carries a farm from planting through to sale.
How a chattel mortgage works for agriculture
A chattel mortgage suits a farming business that intends to keep a machine for its full working life. You own the tractor or spray rig from settlement, claim the GST on the purchase in the relevant BAS, and depreciate the asset while deducting interest. For farms carrying variable income this ownership structure also means the machine sits on your balance sheet as equity you can borrow against later. Timing the purchase around the end of the financial year is worth a conversation with your accountant before you sign.
The cash-flow pattern we plan around
Costs spread across the growing season with income concentrated into a harvest, shearing or livestock sale window, sometimes only once a year.
What agriculture typically fund
- Tractors, headers and implements
- Irrigation and water infrastructure
- Seed, fertiliser and chemical before planting
- Livestock purchase and handling equipment
- Silos, sheds and on-farm storage
Chattel mortgage for agriculture: the numbers
| Typical amounts | $10,000 – $2,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 14.5% p.a. |
| Repayments | Monthly (weekly or fortnightly available) |
| Speed | 24–48 hours for low-doc up to $150k; longer for full-doc |
| Documents agriculture usually need | ABN and land ownership or lease details · Two years of tax returns and financials · Machinery quote or livestock purchase details |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Agricultural equipment finance
Agricultural equipment finance is secured lending for farm machinery such as tractors, headers, sprayers and irrigation systems, commonly written over three to seven years with annual or seasonal repayments aligned to harvest income.
Seasonal repayment structure
A seasonal repayment structure is a loan schedule where repayments fall due when farm income arrives — annually after harvest or in set months — rather than in equal monthly instalments.
What is a chattel mortgage?
A chattel mortgage is a business loan used to buy a movable asset (a chattel) such as a ute, truck, excavator or equipment. The business takes ownership immediately and the lender registers a security interest over the asset until it is paid off.
Chattel mortgage balloon payment
A balloon is a lump sum, typically 0–40% of the purchase price, paid at the end of the term. It lowers regular repayments but must be paid, refinanced or covered by selling the asset when the term ends.
Questions from agriculture
Can farm finance repayments be matched to harvest or livestock sales?
Yes. Agricultural lenders offer seasonal, half-yearly and annual repayments so machinery and working capital are paid for when grain, wool, livestock or milk income arrives rather than monthly, and some allow a repayment holiday while a crop is in the ground. Tell your broker when income arrives and the structure is built around it.
How do farmers fund inputs between planting and harvest?
A seasonal line of credit or a working capital loan secured against the farm covers seed, fertiliser, chemicals, fuel and contractors through the growing season and is repaid from the harvest. Some input suppliers offer finance, and a broker compares it against the panel. Livestock producers use the same structure across the sale cycle.
Can I finance machinery bought at a clearing sale?
Yes. Clearing sale and private purchases are financed with a PPSR clearance, an inspection and a signed sale agreement, and lenders are relaxed about the age of tractors and headers from major brands. Pre-approval before the sale lets you bid with confidence and settle to the vendor within days.
Can I buy the neighbouring farm or more land with finance?
Yes. Rural property loans fund land purchases, water entitlements and farm improvements against the value of the land and the enterprise’s earnings, usually over 15 to 30 years. Lenders look at the farm’s history, the combined operation’s cash flow and equity. Lyft Money works with agribusiness lenders as well as the major banks.