Finance question
Can I get a loan to buy a farm?
Yes, usually. A farm purchase is a property-backed loan: the land carries the lending, and lenders look at the equity you hold rather than whether your other property is paid off. Property-backed facilities run to $5 million and beyond, and equity in your home or another property can cover the deposit, subject to lender assessment.
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The short answer
The land carries the loan, and the water and machinery are priced on top
A farm is bought as a property and then equipped as a business. Lenders fund the land and buildings as a property-backed loan, with machinery and water assessed around it. Because the deal stands on the equity rather than on trading history, a buyer with strong equity but a short farming record can still qualify, and the property you offer as extra security does not need to be paid off, because lenders look at the equity position. Property-backed facilities run to $5 million and beyond (property-backed business loans guide).
Land values vary more than loan terms do, so price the region before you price the loan. Our vineyard guide's 2025 data has farmland medians of about $17,500 a hectare in the Barossa, $18,700 to $26,900 in the Margaret River hinterland and $25,900 in McLaren Vale, against about $4,400 a hectare for the Riverland and inland irrigated districts (vineyard guide). Water entitlements trade separately from land, with high-reliability Murray entitlements around $4,300 to $9,000 a megalitre in the latest season by zone, so the contract and the valuation should price land and water apart. As with any property purchase, the loan is sized off the lender's valuation, not your contract price.
The rest of the farm is financed around the land. A machinery shed installed runs $80,000 to $210,000 for common sizes (farm shed guide), a mainstream used header $217,000 to $297,000 (combine harvester guide), and centre pivot irrigation about $4,600 a hectare at the median of completed projects, which that guide treats as a floor in current dollars (irrigation guide). Machinery and pivots usually go on separate equipment finance, while sheds are fixed improvements that sit with the land. Ventas is a broker across 40+ lenders, not a single bank, and there is no upfront fee to you; the lender pays us on settlement.
Do you qualify?
What a lender looks at on a farm purchase.
Deposit or equity
Savings, or equity in your home or another property, plus duty and costs.
A farm plan
Expected income and costs, and a budget showing how the loan is serviced.
Farming experience
Lenders weigh your record, or a manager or family operator on the property.
Income to service the loan
Farm income, off-farm income, or both, with seasonal timing in mind.
Why equity does the heavy lifting
Land is real security
A lender can value the farm and take security over it.
Other property can help
Equity in your home or an investment property can cover the deposit.
Repayments can follow income
Seasonal structures can line up with harvest or sale timing.
A worked example
A buyer agrees to purchase a 100-hectare property at about the Barossa farmland median of $17,500 a hectare, $1.75 million. They have $350,000 saved and $500,000 of equity in their home. The lender takes the farm as first security and the home as additional security, so it may lend the full $1.75 million across both securities, subject to valuation and lender assessment, with the home equity covering the deposit and the savings covering duty and costs. Illustrative only.
Common questions
Frequently asked questions
Can I buy a farm with no farming experience?
Sometimes. Lenders weigh experience, but a property-backed deal stands on the equity rather than trading history, and a farm manager, a family operator or a clear plan can help. Expect more questions than an established farmer would get.
How much deposit do I need to buy a farm?
It depends on the lender and the property. Equity in other property can count toward it, and the loan is sized off the lender's valuation, not the contract price, so paying above valuation means you fund the whole gap.
Is GST payable on a farm purchase?
Farmland has two GST-free routes, the going concern rule and the five-year farming land rule, and the second is often easier to satisfy. Have your accountant confirm which applies before you sign.
Is the machinery on the farm financed in the same loan?
Usually not. Plant and machinery are normally financed separately against the equipment, over terms matched to its life, so the farm loan covers the land and fixed improvements.
Can repayments follow my farm income?
Often. Seasonal structures can concentrate repayments after harvest or sale, and some facilities follow income such as vintage or milk. Tell us your income months at application.