Farm finance options
Farms borrow for livestock, buildings, machinery, working capital and land. Options include term loans from banks and specialist agricultural lenders, asset finance for machinery and agricultural mortgages for land.
Because farm income is seasonal, some lenders offer repayment schedules that match it, such as annual or quarterly payments. This calculator shows the monthly equivalent.
Worked example
Borrowing £40,000 at 8% over 5 years costs £811.06 a month, £48,663.35 in total.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Planning repayments
Check that repayments are affordable across the farming year, including in months when little income comes in.
Inputs for the agriculture loan calculator
Amount to borrow
The amount the farm business wants to borrow.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over.
CALCULATOR QUESTIONS
Agriculture loan calculator questions
Can farm loan repayments match the harvest?
Some agricultural lenders offer seasonal or annual repayments. Ask your lender.
What can an agriculture loan be used for?
Things like livestock, buildings, machinery, working capital or diversification projects.
What's the difference from an agricultural mortgage?
Agricultural mortgages are long-term loans secured on land. Agriculture loans are usually shorter and for other purposes.
Does this include fees?
No. Add any arrangement fees from your offer.