Important Considerations When Funding Your Crop Farm


Over the last ten to fifteen years there has been a dramatic increase in the number of people giving up their day jobs to start farming. Of course, some people choose to start a crop farm alongside their current job. Regardless of your choice the one thing you will need to help your crop farm off the ground is the right equipment.

Unfortunately, farming equipment costs a significant amount of money. It is likely that you will need help with funding your farm. Fortunately, there are several options open to you.


Before you go any further it is worth taking a look at what grants are available in your area. You may be surprised at how supportive the local government can be. The best thing about a grant is that you won’t need to pay it back.

You will need to follow the designated procedure to ensure you apply properly and increase the likelihood of securing a grant.

Farming Finance

If you are looking for farm equipment finance then you should take a look at what the specialists in this field are offering. Finance for farm equipment is surprisingly competitive and you will find that those who sort finance are very supportive. As a farmer, you need to use dependable equipment, like  John Deere tractors, to become more productive.

The advantage of using a farming finance firm is that they know the industry and will be better positioned to understand your needs, the challenges you face, and to support you in your repayments.

Dedicated lending firms are likely to offer one of the following three options:

1. Hire Purchase

Hire purchase is effectively a loan that allows you to have the equipment now and pay for it in installments. It is normal for the installments to stretch between 12 and 72 months. You will need to pay a deposit and the finance will be secured on the equipment, negating the risk to the finance company.

At the end of the term, the equipment is yours.

2. Leasing

Leasing is an attractive option for anything that has a relatively short life. It adopts a similar approach to renting. You make a monthly payment to secure the use of your desired equipment. The lease will be for a pre-defined term and you can easily upgrade your equipment at the end of the lease.

It will be worth checking whether you are responsible for maintenance and repairs or not, different leases have different terms and conditions.

3. Contract Hire

A contract hire agreement is designed to minimize the cost of getting farm equipment. The finance company will know the value of the equipment new and calculate what it will be worth at the end of the contract. You pay the difference in monthly installments, helping to keep costs low. It is easy to change the item at the end f the contract.


It is also possible to find investors who are willing to join you and fund your venture. However, this does mean you are likely to lose some control over the direction of your crop farm. It may not be the best option.

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