What are the Different Types of Agricultural Finance?

What are the different types of agricultural finance?

As a farmer in need of agricultural finance, it can be confusing as to which finance best suits your needs and budget. The application process in itself can be difficult, but if you know what type of agricultural finance you need it can become much easier.

Input finance for purchasing farm materials and livestock funding

This finance may not cover the costs of large equipment or machinery but it does allow you to purchase other essential items that help with the smooth running of your farm. You can also use this finance to purchase other materials or even small equipment such as compact tractors or farming tools.

Emerging farmer finance

Emerging farmer finance is usually provided by financial institutions and by commercial banks, as private lenders may view it as a risky investment. If an SME or emerging farmer can be assisted to receiving a contract from a large-scale retailer, this contract can be ceded to a financial institution as security for their loan. You may find that finance for a start-up loan requires some form of collateral.

Asset finance

If you do not have the cash upfront to pay for an important asset, you can look into asset finance to aid the situation. Asset finance requires detailed descriptions of the equipment you need as well what you will be using it for.

Asset finance will allow you to purchase or replace any equipment you may need, such as milking equipment, tractors, harvesting machinery and any other assets that come with a large upfront cost. You could also look into leasing this equipment, if you do not need to use it for an extended period of time.

Vehicle finance

While this may not seem like the most immediate choice of finance for a farm, the fact of the matter is that farmers need vehicles too. You may need specialist vehicles for certain tasks such as tractors, feed mixers and combine harvesters.

As a farmer you will also need a sturdy vehicle to traverse your farmland, and may not have the extra finances to purchase one. You can choose between hire purchase and lease agreements, and decide on one with better interest rates to suit your needs. This is perfect for farmers who need a new truck or vehicle to transport goods and workers around the farm.


There are several different options for those who are in need of agricultural finance. You will be able to find one to best suit your needs, and your budget. Be sure to research every aspect of whichever one you choose and read the fine print before signing anything. It may seem a daunting prospect but you will be able to find finance to help your farm grow.

Here at Richmond Asset Finance we offer a range of flexible funding options enabling you to purchase and refinance assets and grow your business. Our solutions are designed to make purchasing an asset as easy as possible. Richmond Asset Finance Ltd can finance a large range of business assets ranging from vehicles to plant and machinery, and agricultural equipment.