Commercial property loan · Agriculture
Commercial property loan 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 commercial property loan works for agriculture
Buying additional farmland, a set of silos with an access agreement, or a commercial shed on a nearby industrial block usually falls under a commercial property loan rather than a residential one. Deposits are larger than for a house — often 30% or more on rural land — and lenders assess the income the property will generate alongside the farm accounts. Rural land in a lower-rainfall zone can attract a more conservative valuation, so it is worth understanding the lender view before you go to auction.
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
Commercial property loan for agriculture: the numbers
| Typical amounts | $250,000 – $20,000,000 |
|---|---|
| Term | 12–360 months |
| Indicative rates | 6.2% – 9.9% p.a. |
| Repayments | Monthly |
| Speed | 2–6 weeks |
| 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 commercial property loan?
A commercial property loan is a mortgage over non-residential property such as offices, warehouses, retail or industrial units. It can be full-doc, low-doc or lease-doc depending on how servicing is assessed.
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.