The Ultimate Guide to Farm Equipment Finance for Dairy Farmers

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

Australia's dairy industry plays a vital role in the country's agricultural landscape. As a dairy farmer, ensuring the efficiency and productivity of your farm operations is crucial to your success. One way to achieve this is by having access to reliable and modern farm equipment. However, purchasing or upgrading equipment can be a significant financial investment, and that's where farm equipment finance comes in. Farm equipment finance provides dairy farmers with the opportunity to acquire the necessary machinery and equipment without having to bear the full upfront cost. This financing option allows farmers to spread out payments over a period of time, making it more manageable for their cash flow. Investing in the latest farm equipment can enhance productivity, increase efficiency, and improve overall farm operations. From dairy shed upgrades and milking equipment to tractors and feeding systems, having access to the right equipment can have a significant impact on the profitability and sustainability of dairy farms. Farm equipment finance also provides the flexibility to choose the most suitable financing options based on individual farm needs. Whether it's a business farm equipment finance setup or financing for specific equipment, dairy farmers can tailor their financing solutions to match their unique circumstances. By using a farm equipment finance calculator, dairy farmers can assess affordability, monthly repayments, and interest rates. It enables them to make informed decisions about their financial commitments and ensure that the financing terms align with their business goals. In the following sections, we will delve deeper into the various aspects of farm equipment financing, exploring different types of financing options available and discussing the benefits and considerations that dairy farmers should keep in mind. Let's explore how you can leverage farm equipment finance to take your dairy farming operation to the next level.

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What is Farm Equipment Finance?

Farm equipment finance is a financing solution specifically designed to help dairy farmers acquire the necessary machinery and equipment for their operations. It provides an alternative to purchasing equipment outright by allowing farmers to spread out the cost over a specified period of time. This financing option has gained popularity among dairy farmers in Australia due to its flexibility and affordability. In essence, farm equipment finance works by partnering with financial institutions or lenders who specialise in providing loans for agricultural purposes. Dairy farmers can apply for the finance to purchase or upgrade equipment essential to their farm operations. The financing terms include factors such as loan amount, interest rates, and repayment periods, which are tailored to suit the farmers' needs. Farm equipment finance offers several advantages to dairy farmers. It allows farmers to conserve their capital by avoiding large upfront costs, enabling them to allocate their funds towards other critical areas of their business. Additionally, the financing terms are typically structured to align with the expected returns generated from the equipment, ensuring that the loan repayments are manageable for the farmers. By utilising farm equipment finance, dairy farmers can gain access to modern and efficient equipment that can enhance productivity and improve overall farm efficiency. Having reliable machinery can streamline operations, reduce labour costs, and potentially increase milk production. Overall, farm equipment finance provides dairy farmers in Australia with an accessible and convenient way to acquire the equipment they need to thrive in a competitive market. It offers flexibility, affordability, and the opportunity for farmers to invest in the latest technology and equipment without burdening their financial resources.

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Top 10 Types of Farm Equipment Dairy Farmers Can Purchase With Farm Equipment Finance

With farm equipment finance, dairy farmers have the opportunity to invest in essential equipment. This includes tractors for versatile tasks, milking equipment for efficient milk extraction, and feed mixers for balanced diets. These tools can enhance farm productivity, improve milk quality, and promote the overall well-being of the dairy farm.

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


Tractors are versatile and essential farm equipment used by dairy farmers for a variety of tasks such as ploughing, seeding, and pulling heavy machinery.

Milking Equipment

Milking equipment, including milking machines and bulk milk tanks, are crucial for efficient and hygienic milk extraction and storage on dairy farms.

Feed Mixers

Feed mixers help dairy farmers blend different types of feed, ensuring proper nutrition and balanced diets for their livestock, resulting in healthier cows and increased milk production.

Hay Balers

Hay balers are used to compress and shape hay into compact bales, making it easier to handle, store, and feed to livestock during seasonal shortages.

Silage Harvesters

Silage harvesters efficiently harvest and chop corn plants and other crops into silage, a highly nutritious feed for dairy cows, improving their diet and milk production.

Manure Spreaders

Manure spreaders distribute animal waste evenly across fields, serving as a sustainable method of fertilisation that improves soil health and promotes healthy pasture growth.

Milk Cooling Tanks

Milk cooling tanks maintain low temperatures and rapid cooling of milk after milking, preserving its quality and preventing bacterial growth before it is transported for processing.

Cattle Scales

Cattle scales enable accurate and reliable weighing of dairy cows, aiding in monitoring their growth, health, and overall production performance.

Dairy Shed Upgrades

Dairy shed upgrades include the instalation of milk parlours, improved ventilation systems, and automated feeding systems, enhancing cow comfort and operational efficiency.

Milk Quality Testing Equipment

Milk quality testing equipment, such as somatic cell counters and milk analysers, ensures the assessment of milk quality, enabling early detection of any abnormalities or contaminants.

Top 10 Ways Dairy Farmers Use Farm Equipment Finance For Growth

Farm equipment finance offers dairy farmers the opportunity to invest in various equipment for growth. Upgrading milking equipment, implementing automated feeding systems, and improving cooling systems can enhance productivity and milk quality. Additionally, utilising farm management software and precision agriculture tools can streamline operations and optimise farm efficiency.

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

Milking Equipment

Investing in modern milking equipment can improve milk extraction efficiency, reduce labour costs, and ensure hygienic practises for dairy farmers.

Automated Feeding Systems

Implementing automated feeding systems allows for precise and consistent feeding schedules, ensuring optimal nutrition for dairy cows and improving milk production.

Cooling Systems

Upgrading cooling systems, such as milk cooling tanks, helps maintain milk quality and freshness, preserving its value and meeting industry standards.

Farm Management Software

Utilising farm management software enables dairy farmers to streamline operations, track inventory, manage finances, and make data-driven decisions for growth.

Precision Agriculture Tools

Precision agriculture tools, like GPS guidance systems and yield monitors, enhance farm efficiency by optimising planting, irrigation, and nutrient management practises.

Upgraded Herd Management Systems

Implementing advanced herd management systems helps monitor individual animal health, reproduction cycles, and genetic data, leading to better breeding and overall herd performance.

Manure Management Equipment

Investing in manure management equipment, such as separators and nutrient injectors, promotes sustainable farming practises and reduces environmental impact.

Improved Irrigation Systems

Upgrading irrigation systems, including sprinklers and drip systems, ensures efficient water usage, reducing water wastage and lowering operating costs.

Crop Harvesting Machinery

Acquiring modern crop harvesting machinery, like forage harvesters and balers, enables efficient and timely harvesting, preserving crop quality and maximising yield.

On-Farm Storage Facilities

Expanding on-farm storage facilities, such as grain silos and bulk storage tanks, allows dairy farmers to store feed, grains, and other resources on-site, reducing reliance on external suppliers.

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Advantages of Farm Equipment Finance for Dairy Farmers

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


Tractors are indispensable for Dairy Farmers in Australia, enabling them to efficiently complete a wide range of farm tasks. From ploughing the fields and sowing crops to pulling heavy machinery, tractors are essential for everyday operations and improving productivity.

Milking Equipment

Milking equipment, such as automated milking systems and milking parlours, significantly streamlines the milking process for Dairy Farmers. These advanced equipment ensure efficient milk extraction, reducing labour and enhancing milk quality and yield.

Feeding Equipment

Farm equipment finance allows Dairy Farmers to invest in modern feeding equipment, like feed mixers and automatic feeding systems. These equipment streamline the process of distributing feed to cattle, ensuring optimal nutrition and minimising wastage.

Cooling Systems

Maintaining the quality and freshness of milk is crucial for Dairy Farmers. Cooling systems, like bulk milk coolers and refrigeration units, can be financed to ensure proper milk storage and preservation, preventing spoilage and safeguarding the value of the dairy products.

Disadvantages of Farm Equipment Finance for Dairy Farmers

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

Financial Commitment

Farm equipment finance entails a financial commitment for Dairy Farmers, as they will need to repay the loan or lease over a certain period. While this can help acquire necessary equipment, it's essential for farmers to consider their budget and ensure they can comfortably meet the repayment obligations alongside other expenses.

Interest Rates and Fees

Depending on the financing option chosen, Dairy Farmers may encounter interest rates and additional fees. While farm equipment finance providers strive to offer competitive rates, it's crucial for farmers to carefully review and compare terms and conditions to ensure they select a suitable option that aligns with their financial goals.


Farm equipment may depreciate in value over time, which is an important consideration for Dairy Farmers seeking financing. When financing equipment, farmers should factor in the expected depreciation and ensure that the financing terms and duration align with the useful life of the equipment.

Technological Advances

The agriculture industry is constantly evolving, with new and improved equipment entering the market regularly. Dairy Farmers should consider the potential for technological advancements when financing equipment to ensure they invest in solutions that remain viable and efficient in the long term.

Farm Equipment Financing Alternatives for Dairy Farmers

Dairy Farmers have a range of alternatives to consider when it comes to financing farm equipment. Options such as equipment loans, leasing, hire purchase, and manufacturer financing programmes provide flexibility and accessibility. These alternatives allow farmers to acquire the necessary equipment while managing their finances effectively.

Here are some common alternatives to farm equipment finance:

Equipment Loans

Dairy Farmers can opt for equipment loans to finance their farm equipment needs. These loans involve borrowing a specific amount of money to purchase the equipment outright. With flexible terms and fixed interest rates, equipment loans offer a straightforward and accessible financing option for Dairy Farmers.


Leasing provides Dairy Farmers with the opportunity to use the equipment without the need for large upfront costs. Through leasing agreements, farmers can rent the required equipment for a specified period, paying regular lease payments. Leasing offers flexibility, as it allows farmers to upgrade or change equipment as their needs evolve.

Hire Purchase

With hire purchase financing, Dairy Farmers can acquire the equipment through an agreement where they make regular instalments to the financing company. Ownership of the equipment is transferred to the farmer once the final payment is made. This option provides flexibility and the ability to spread the cost over a predetermined period.

Manufacturer Financing Programs

Some equipment manufacturers may offer their financing programmes specifically tailored to Dairy Farmers. These programmes often come with competitive rates and terms, making it easier for farmers to access the necessary equipment while benefitting from manufacturer support and expertise. It's worth exploring these programmes when considering farm equipment financing.

Farm 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.

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Frequently Asked Questions

Still have questions about farm 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 farm equipment finance
Can I finance used equipment?
What is the typical term for farm equipment finance?
Do I need to provide a down payment?
Can I get farm equipment finance with bad credit?
Are there any tax benefits to farm 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 farm 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?