Can farm equipment loans have annual payments?

Yes. Annual and semi-annual payment schedules are common in agricultural equipment lending.

Does the USDA finance farm equipment?

Yes. Farm Service Agency operating loans can be used for equipment, for farmers who meet the program's eligibility rules.

What does a $150,000 tractor loan cost?

At a representative 8%–30% APR, the equivalent of about $3,041–$4,853 a month over 60 months. Annual schedules total roughly twelve times that per year.

WithFunded › Best-of guides › By product

Best equipment financing for farms in 2026

The best equipment financing for a farm is an equipment loan with annual or semi-annual payments timed to harvest income. A lease lowers the cost of high-hour machines such as combines that some farms replace often, and USDA Farm Service Agency loans help farmers who cannot qualify commercially. Farm equipment holds value well, which supports longer terms.

By the WithFunded team · Published November 11, 2026 · Rates as of November 2026

The short list

Best for tractors and implements: Equipment loan
Best for combines and high-hour machines: Equipment lease
Best for beginning farmers: USDA Farm Service Agency loan
Best for major fixed installations: SBA 504 loan

The 4 best options, ranked

1. Equipment loan Best for tractors and implements

A tractor can work for decades. A loan with payments due after harvest matches the way a farm is paid.

Watch for: Older or highly specialized equipment gets shorter terms and higher rates. Equipment financing guide →
2. Equipment lease Best for combines and high-hour machines

Leasing keeps newer, more reliable machines in the field during the weeks when a breakdown is most costly.

Watch for: On a fair-market-value lease you do not own the equipment unless you pay the buyout. Equipment financing guide →
3. USDA Farm Service Agency loan Best for beginning farmers

FSA loans can finance equipment for farmers who do not yet qualify with a commercial lender.

Watch for: A government application process with program-specific eligibility rules.
4. SBA 504 loan Best for major fixed installations

Grain storage, irrigation systems, and buildings are long-lived fixed assets that fit the 504 program.

Watch for: Only for fixed assets. It cannot fund payroll, inventory, or other working capital. SBA loan guide →

Side-by-side comparison

Option	Verdict	Cost basis	Funding speed	Qualifies on
Equipment loan	Best for tractors and implements	Representative 8%–30% APR, with the term matched to the equipment's useful life	Days to weeks	The equipment is the collateral, which can offset a thinner credit profile
Equipment lease	Best for combines and high-hour machines	A monthly lease payment; total cost depends on the end-of-term buyout	Days to weeks	The equipment is the collateral; often less cash up front than a loan
USDA Farm Service Agency loan	Best for beginning farmers	Set by the USDA program; operating and farm ownership loans	Weeks to months	Farmers and ranchers who cannot get commercial credit on reasonable terms
SBA 504 loan	Best for major fixed installations	CDC portion roughly 6.6% on 10 to 25 year terms	Weeks to months	Owner-occupied real estate or major equipment, plus a down payment

What it costs

Monthly payments on a standard fixed-payment loan at the representative 8%–30% APR band. The low end of each range is 8% APR and the high end is 30% APR.

Amount	36 mo	60 mo	84 mo
$50,000	$1,567–$2,123	$1,014–$1,618	$779–$1,430
$150,000	$4,700–$6,368	$3,041–$4,853	$2,338–$4,289
$400,000	$12,535–$16,981	$8,111–$12,941	$6,234–$11,437

Financing $150,000 over 60 months costs about $3,041–$4,853 a month, or $32,488 to $141,181 in total interest, depending on the rate you qualify for. WithFunded calculation, representative 8%–30% APR band. Not a quote.

What lenders look at

Several years of farm income and production records.
Equity in existing land and equipment.
The equipment's hours, age, and auction value.

Mistakes to avoid

Monthly payments when your income is annual.
Buying new when a well-maintained used machine at auction would do the same work.

Frequently asked questions

Can farm equipment loans have annual payments?: Yes. Annual and semi-annual payment schedules are common in agricultural equipment lending.
Does the USDA finance farm equipment?: Yes. Farm Service Agency operating loans can be used for equipment, for farmers who meet the program's eligibility rules.
What does a $150,000 tractor loan cost?: At a representative 8%–30% APR, the equivalent of about $3,041–$4,853 a month over 60 months. Annual schedules total roughly twelve times that per year.

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How we ranked these options

This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.

WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.

Related guides

The top-ranked option on this page is equipment loan because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.

Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.