Farming and agricultural operations have unique financing needs — land, equipment, inputs, weather risks, seasonal cash flow, and more. Conventional small business loans often don’t fit those realities. But fortunately, there are several specialized loan programs and lenders tailored for farmers and agribusinesses.
In this guide, you’ll learn:
The best loan types available to farmers
Key lenders and programs (USDA, FSA, Farm Credit, SBA)
How to qualify for them
Tips for boosting approval odds
What loan sizes, rates, and terms to expect
Unlike many small businesses, farms deal with:
High capital costs (land, machinery, irrigation systems)
Long payback cycles and seasonal income
Volatility in commodity prices, weather, and input costs
Needs for both operating capital (e.g. seed, fertilizer) and long-term investment (land, buildings)
Because of these, lenders prefer to work through programs that understand agriculture and can tailor terms accordingly.
Here are the most important and accessible loan options in 2025 for farmers and agricultural businesses:
The FSA offers one of the most farmer-friendly portfolios of loans.
You can borrow funds directly from FSA, or get a commercial lender loan backed ("guaranteed") by FSA.
Loan amounts: up to $600,000 direct; guarantees can support higher amounts.
Uses: buying or expanding farmland, building or improving farm facilities, conservation, etc
For day-to-day farm expenses — seed, feed, supplies, repairs, livestock, etc.
Direct operating loans from FSA can go up to $400,000 (for larger borrowers) with shorter terms.
Special programs targeting new or beginning farmers (<10 years in operation) to ease entry.
Includes Down Payment Loans to reduce upfront cost when buying land.
Pros: Favorable interest rates, government backing, longer terms possible.
Cons: More documentation, slower approval, stricter eligibility.
Farm Credit System is a network of lending institutions built specifically for agriculture. They often offer:
Real estate loans
Operating lines of credit
Equipment finance
Young, Beginning & Small (YBS) farmer programs
Tailored to agriculture with understanding of farm business cycles
Farm Credit lenders are among the first places farmers look because they specialize in agricultural risk and structure.
Although SBA loans are general small business tools, they can also be used in agricultural contexts — especially for ag-adjacent operations (processing, agritech, value-added activities).
SBA 7(a) loans can be used for equipment, working capital, refinancing debt, land, etc.
But pure crop operations or large farmland purchases are better served by USDA / Farm Credit mechanisms.
Some private lenders and finance firms now offer agriculture business loans tailored to farmers:
National Funding provides agriculture / farm business loans and equipment financing. nationalfunding.com
These lenders tend to have faster approvals, more flexible underwriting, but at higher interest rates.
While each lender and program has its standards, common qualifying factors include:
Adequate and reliable farm income / revenue history
Strong crop, livestock, or production records
Sound business plan & projections
Track record managing debt or cash flow
Good credit (business + personal)
Collateral (land, equipment, etc.)
For USDA / FSA, meeting definitions of “family-size farmer” and eligibility criteria
Before applying, gather your financial statements, farm production records, equipment valuations, and any relevant documentation (land leases, contracts, etc.)
| Use Case / Need | Best Loan Type | Why It Fits |
|---|---|---|
| Buying new farmland or expanding acreage | FSA Direct / Guaranteed Farm Ownership | Low rates, long terms, government support |
| Operating costs, seed, fertilizer, livestock | FSA Operating Loans | Tailored to recurring farm expenses |
| Beginning farmer entering the industry | FSA Beginning Farmer / Down Payment Programs | Reduces entry cost, supportive terms |
| Equipment, machinery, barns | Ag Equipment Finance / Farm Credit | Collateral-based, specialized underwriting |
| Fast funding for ag business (processing, agritech) | Private Ag Lenders or SBA | Quicker, more flexible, albeit with higher cost |
Build a solid track record — if possible, start small and show profitability
Diversify revenue streams — crops + livestock + value-added products
Maintain clean records & documentation — production, yields, sales
Use seasonality to your advantage — align your application timing when cash flow is strong
Work with local ag lenders — they understand your area, soil, crops, risks
Leverage guarantees / co-lenders — using guaranteed programs (like FSA) reduces risk for lenders
Start early — agriculture loan processing can take longer than standard business loans