The Ultimate Guide to Equipment Finance for Livestock Farmers

The Ultimate Guide to Equipment Finance for Livestock Farmers with Emu MoneyThe Ultimate Guide to Equipment Finance for Livestock Farmers with Emu Money

Livestock farming is a vital industry in Australia, and the success of livestock farmers greatly depends on having the right equipment. Whether it's machinery for feeding, milking, or transporting animals, having the right tools can significantly impact efficiency and productivity. However, acquiring these essential equipment pieces can be a financial burden for many farmers. This is where equipment finance comes into play. Equipment finance offers Livestock Farmers the opportunity to access the necessary machinery without having to make a large upfront payment. Instead, a finance provider offers a loan or leasing option, allowing farmers to acquire the equipment they need and pay for it over time. Why is equipment finance essential for Livestock Farmers in Australia? Firstly, it allows farmers to stay up to date with the latest technology and equipment advancements. Livestock farming processes are continually evolving, and having access to modern machinery is crucial for farmers to remain competitive and efficient. Equipment finance provides the means to invest in state-of-the-art equipment that can enhance productivity and streamline operations. Additionally, equipment finance helps farmers manage their cash flow effectively. By spreading the cost of equipment over several months or years, farmers can allocate their funds to other essential aspects of their farming operations, such as animal care, maintenance, and expansion projects. This can provide peace of mind and financial flexibility, ensuring that the farm is running smoothly.

Ready to get started?

Compare over 40+ lenders with one application.

What is Equipment Finance?

Equipment finance is a financing solution specifically tailored to meet the needs of Livestock Farmers in Australia. It allows farmers to obtain the necessary equipment for their operations without having to make a substantial upfront payment. Instead of purchasing the equipment outright, farmers can enter into a financial agreement with a lender that allows them to use the equipment while making regular payments over an agreed-upon period. To understand how equipment finance works, it is important to note that there are different options available, including equipment loans and equipment leasing. With equipment loans, the farmer borrows a specific amount of money from the lender to purchase the equipment. The farmer then repays the loan plus interest over time. On the other hand, equipment leasing works like a rental agreement, where the farmer pays regular lease payments to use the equipment. The terms of the equipment finance agreement, such as the repayment period and interest rates, will vary depending on the lender, the type of equipment, and the financial circumstances of the farmer. It's essential for Livestock Farmers to carefully consider their financial situation and budget before entering into an equipment finance agreement. Conducting a thorough analysis of their cash flow and projected income can help determine the affordability of the financing option. By opting for equipment finance, Livestock Farmers can access the latest equipment and technology needed for their operations without the financial burden of an upfront purchase. This allows them to improve productivity, streamline processes, and stay competitive in the ever-evolving livestock farming industry.

Want to learn more?

Learn about eligibility and how to apply.

Top 10 Types of Equipment Livestock Farmers Can Purchase With Equipment Finance

Livestock Farmers can leverage equipment finance to acquire essential machinery such as tractors, milking machines, and animal handling equipment. These investments enhance efficiency, promote animal welfare, and streamline operations. Equipment finance enables farmers to overcome financial burdens and access the equipment they need to thrive in the industry.

Here are some common types of equipment Livestock Farmers can purchase with equipment finance:


Tractors are versatile agricultural vehicles that facilitate tasks such as ploughing, seeding, and transporting heavy machinery.

Milking Machines

Milking machines are vital for dairy farmers, enabling efficient and hygienic milk extraction from cows, reducing manual labour.

Animal Handling Equipment

Equipment like cattle crushes and sheep yards assist in safely restraining and handling livestock during procedures like vaccinations and shearing.

Feeding Equipment

Feed mixers and silage waggons aid in efficiently preparing and distributing feed to livestock, ensuring proper nutrition and minimising waste.

Watering Systems

Automatic watering systems provide a reliable and convenient water supply to livestock, promoting hydration and ensuring their well-being.

Fencing Equipment

Electric fencing systems, gates, and wire mesh are essential for securing livestock, defining boundaries, and managing rotational grazing.

Livestock Weighing Systems

These systems accurately measure the weight of animals, providing crucial data for monitoring growth, health, and market readiness.

Livestock Trailers

Livestock trailers allow the safe transport of animals, enabling farmers to transport livestock to marketplaces or veterinary facilities.

Shearing Equipment

Shearing machines and equipment are necessary for wool producers, facilitating the efficient and humane shearing of sheep to collect their fleece.

Feed Storage Systems

Grain silos, hay sheds, and bulk feed storage bins provide efficient and organised storage solutions for livestock feed, preserving quality and reducing wastage.

Top 10 Ways Livestock Farmers Use Equipment Finance For Growth

Equipment finance enables Livestock Farmers to fuel their growth by investing in areas such as expanding their operations, implementing advanced veterinary equipment, improving grain storage facilities, and adopting renewable energy systems. These strategic investments promote efficiency, enhance animal welfare, and contribute to the long-term success of the farming business.

Here are some common reasons Livestock Farmers use equipment finance for growth:

Expansion of Livestock Operations

Livestock farmers can utilise equipment finance to invest in additional livestock, expand breeding programmes, and increase the scale of their operations.

Irrigation Systems

Investing in irrigation equipment allows farmers to efficiently water pastures and crops, promoting growth and improving yield.

Advanced Veterinary Equipment

Access to modern veterinary equipment like ultrasound machines and diagnostic tools enables farmers to enhance animal healthcare and early disease detection.

Grain Storage Facilities

Building or upgrading grain storage facilities allows farmers to efficiently store and preserve harvested crops, ensuring a steady supply of feed for livestock.

Renewable Energy Systems

By financing solar panels or wind turbines, farmers can generate renewable energy, reduce operating costs, and contribute to sustainability efforts.

Mobile Handling Equipment

Livestock farmers can acquire portable handling equipment like sheep or cattle yards, facilitating livestock movement and handling in different locations.

Automated Feeding Systems

Investing in automated feeding systems reduces labour-intensive tasks and ensures consistent and accurate feed distribution to livestock.

GPS Technology

Precision farming tools with GPS technology enable farmers to optimise crop planting, livestock grazing, and land management practises for increased efficiency.

Upgraded Dairy Parlor Equipment

Financing the upgrade of dairy parlour equipment, such as milking machines and milk storage systems, improves milking efficiency and hygiene.

Biosecurity Measures

Farmers can use equipment finance to invest in biosecurity infrastructure, including quarantine facilities and fencing, to protect livestock from potential disease outbreaks and maintain herd health.

Ready to run the numbers?

Calculate your repayment estimates and more.

Advantages of Equipment Finance for Livestock Farmers

Equipment finance for Livestock Farmers in Australia brings several advantages, enabling them to secure the necessary equipment for their operations. Here are some of the advantages:

Livestock Handling Equipment

Livestock farmers depend on various equipment such as cattle crushes, stockyards, and livestock scales to efficiently handle and manage their livestock. These essential tools ensure the safety of both the animals and the farmers during routine tasks such as weighing, vaccinations, and hoof trimming. With equipment finance, farmers can easily acquire the necessary livestock handling equipment without straining their finances, allowing them to improve the productivity and well-being of their livestock.

Fencing and Infrastructure

A reliable and secure fencing system is crucial for livestock farmers to ensure the safety and containment of their animals. In addition, infrastructure such as water troughs, gates, and feeders contribute to the efficient operation of the farm. Equipment finance enables farmers to invest in high-quality fencing materials and necessary infrastructure without requiring substantial upfront capital. This allows them to protect their livestock, optimise land use, and enhance overall farm management.

Farm Vehicles and Transport Equipment

Livestock farmers often require farm vehicles and transport equipment for various tasks such as animal transport, feed delivery, and general farm maintenance. Equipment finance provides access to funds that enable farmers to purchase or lease trucks, trailers, and utility vehicles tailored to their specific needs. Reliable farm vehicles and transport equipment improve efficiency, reduce manual labour, and contribute to cost-effective operations, ultimately benefiting the farm's profitability and productivity.

Feed and Hay Processing Equipment

Proper nutrition is vital for livestock farming, and having the necessary feed and hay processing equipment ensures the availability of high-quality feed for the animals. Equipment finance allows farmers to invest in machinery such as feed mixers, hay balers, and grain silos, enabling them to efficiently produce and store animal feed. By reducing reliance on external suppliers and maintaining control over feed quality, farmers can enhance animal nutrition, minimise costs, and ensure long-term sustainability on their farms.

Disadvantages of Equipment Finance for Livestock Farmers

When considering equipment finance for Livestock Farmers in Australia, it's important to be mindful of a few considerations. Here are a few potential disadvantages to think about:

Interest Costs

When opting for equipment finance, livestock farmers need to consider the interest costs associated with borrowing funds. These costs can add up over time, impacting the overall expense of acquiring the equipment. It is important for farmers to carefully evaluate the interest rates and repayment terms offered by lenders to ensure that the financial burden remains manageable throughout the loan tenure.


Like any other asset, equipment depreciates over time, which means its value decreases. Livestock farmers should take into account the potential depreciation of the equipment they finance. It is essential to accurately estimate the equipment's lifespan and assess its residual value at the end of the financing term. By accounting for depreciation, farmers can make informed decisions about the financial feasibility of acquiring equipment through financing.

Maintenance and Repair Costs

Owning equipment comes with maintenance and repair responsibilities. Livestock farmers should consider the ongoing costs associated with regular servicing, repairs, and replacement of parts. While financing covers the initial purchase, farmers need to budget for these additional expenses to ensure the optimal functionality and longevity of the equipment. Proper maintenance and timely repairs are essential to maximise the value and performance of the financed equipment.

Excessive Debt Burden

Equipment finance adds to the overall debt obligations of livestock farmers. It is crucial for farmers to carefully assess their financial situation and borrowing capacity before committing to equipment finance. Taking on excessive debt can strain cash flow and limit the ability to invest in other areas of the farm operation. Farmers should consider their long-term financial goals and ensure that the equipment finance aligns with their overall financial strategy and capability.

Equipment Financing Alternatives for Livestock Farmers

Livestock farmers have several alternatives to traditional equipment finance. They can consider leasing, government grants and subsidies, equipment rental, and collaborative models such as equipment sharing or cooperative arrangements. These alternatives offer flexibility, cost-effectiveness, and opportunities for reduced financial burdens, ensuring farmers can access the necessary equipment without straining their finances.

Here are some common alternatives to equipment finance:


Leasing provides an alternative equipment financing option for livestock farmers. With leasing, farmers can effectively rent the equipment for a specified period, allowing them to utilise the equipment without the need for a large upfront payment. Leasing agreements often cover maintenance and repair costs, providing additional convenience. At the end of the lease term, farmers can choose to return the equipment, upgrade to newer models, or potentially purchase the equipment at a predetermined price.

Government Grants and Subsidies

Livestock farmers can explore government grants and subsidies that specifically support the acquisition of equipment. Various agricultural programmes and initiatives offer financial assistance to farmers, promoting sustainable farming practises and technological advancements. These grants and subsidies can help reduce the financial burden associated with equipment procurement. Farmers should stay informed about available programmes and eligibility criteria to take advantage of these opportunities.

Equipment Rental

Instead of purchasing or financing equipment, livestock farmers can consider equipment rental as a cost-effective option. Renting equipment allows farmers to access the necessary tools for a specific duration, reducing the upfront costs and responsibility of ownership. Rental agreements often include maintenance and repair services, providing peace of mind. This option is particularly beneficial for equipment that is not frequently used or for farmers who prefer flexibility in equipment usage.

Equipment Sharing and Cooperative Models

Livestock farmers can explore collaborative approaches such as equipment sharing or cooperative models. By forming partnerships or joining agricultural cooperatives, farmers can pool their resources and collectively invest in essential equipment. This enables shared utilisation of equipment, reducing individual costs and enhancing efficiency. Cooperative models also provide opportunities for knowledge sharing and networking among farmers, fostering a supportive farming community.

Equipment Finance Repayment Calculator

To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.

Loan Amount
Establishment Fee
Loan Term (Years)
Interest Rate
Total amount to repay
Your repayments

Balance over time

Frequently Asked Questions

Still have questions about equipment finance?

These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.

What is the interest rate on equipment finance
Can I finance used equipment?
What is the typical term for equipment finance?
Do I need to provide a down payment?
Can I get equipment finance with bad credit?
Are there any tax benefits to equipment finance?
Can I pay off my equipment loan early?
Can I lease equipment instead of buying?
What is the difference between a lease and a loan?
What happens if the equipment breaks down?
Can I refinance equipment finance?
Is equipment insurance required?
Do I need a good business credit score for equipment financing?
Can I include installation, maintenance, and other costs in my loan?