By Alison Smith, Rural Finance Broker, Rivendell Rural Finance. Last reviewed: 15/10/2026
Short answer: Most farm loans are limited by two things: the value of the property (the loan-to-value ratio, or LVR) and your ability to service the repayments from farm and off-farm income. Many rural lenders will lend up to around 70–80% of the property’s value, with higher LVRs sometimes available for strong applicants or lower-risk properties.
If you’d like a realistic borrowing figure for your situation, talk to a rural finance specialist or call 1300 653 200.
How much can you borrow for a farm loan?
Lenders work out your borrowing limit using three questions:
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How much is the property worth? The lender’s valuer determines this, and it can differ from the purchase price. Land size, zoning, water access, soil, infrastructure and location all influence value.
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How much equity or deposit do you have? Equity in other property can often be used instead of cash.
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Can the loan be serviced? Lenders assess farm income, off-farm income, existing debts and living expenses.
Worked example (illustrative only)
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Property value (valuation) |
$1,500,000 |
|
Maximum LVR (example) |
70% |
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Maximum loan |
$1,050,000 |
|
Deposit or equity needed |
$450,000 + costs |
This is a simplified example, not a quote or approval. Actual limits depend on the lender, property and your financial position.
Farm loan deposit requirements
Typical deposit expectations depend on property type, location, farm size, income and lender policy. A deposit of around 20–30% is common for working farms, and some lenders allow equity in existing property or a guarantor to replace some or all of the cash deposit.
Hobby farms and small acreage can have different rules. See our guides on loans for acreage and small acreage finance.
What do lenders assess for farm loan approval?
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Farm income, cash flow and profitability (usually 2–3 years of tax returns and financials)
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Off-farm income
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Existing assets, liabilities and equity position
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Property size, zoning, water access and agricultural use
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Location and remoteness
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ABN and GST registration (for business borrowers)
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Credit history
Who can apply for a farm loan?
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Full-time and part-time farmers
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Family farming businesses
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First-time farm buyers
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Self-employed rural business owners and agribusiness operators
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Rural investors
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Contractors and agricultural service providers
What can a farm loan be used for?
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Buying farmland, cattle, sheep, dairy, cropping, mixed farming or vineyard properties
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Hobby farm and rural residential acreage purchases
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Farm expansion and land acquisition
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Refinancing and debt consolidation
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Water licence and infrastructure finance
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Livestock, machinery and equipment finance (see our farming loans guide)
For a full overview of products, read Farming Loans in Australia: A Complete Guide and Rural Finance Services for Farmers. If you’re buying a lifestyle or rural-residential block, see Loan for Rural Property.
Farm loan interest rates and repayment structures
Rates vary by lender and are influenced by loan size, LVR, property type, financial position, farm income stability and industry sector. Options may include:
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Variable and fixed rate loans
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Interest-only periods
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Seasonal or irregular repayment structures that match harvest or livestock income
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Offset and redraw facilities
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Working capital facilities
We don’t publish a single rate because it depends on lender and circumstances. We compare lenders for you.
How a farm loan differs from a standard home loan
Rural lending is assessed differently to residential lending. Lenders look closely at land size, zoning, water access, income generation, agricultural use, remoteness and infrastructure. Many mainstream lenders restrict lending on larger or income-producing rural land, which is why specialist rural lenders and brokers can make the difference between a decline and an approval.
How we help
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Discuss your goals: purchase, refinance or expand.
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Assess your position: income, equity and the property.
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Compare suitable lenders with rural and agricultural lending policies.
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Prepare and lodge the application and manage it through to settlement.
We help clients across NSW, the ACT and regional Australia, including the Southern Tablelands, Riverina, Wagga Wagga, Goulburn, Orange, Dubbo, Bathurst and Tamworth. See all service areas.
Book a free chat about your farm loan or call 1300 653 200.
Frequently asked questions
How much can I borrow for a farm loan?
It depends on the property valuation, the lender’s maximum LVR and your ability to service the loan. Many lenders lend up to about 70–80% of the value of a rural property, subject to policy and your financial position.
How much deposit do I need for a farm loan?
Often 20% or more, plus costs. Equity in other property or guarantor support may reduce or replace the cash deposit with some lenders.
Can self-employed borrowers get a farm loan?
Yes. Lenders will usually assess business income, tax returns and financial performance.
Are hobby farms harder to finance?
Some lenders restrict hobby farms based on land size and use, but specialist lenders do rural and acreage lending.
Can farm equipment or livestock be included in the loan?
Sometimes. Machinery, livestock and infrastructure may form part of the finance structure, or be financed separately.
Can I refinance an existing farm loan?
Yes. Refinancing can reduce repayments, improve structure, consolidate debt or release equity for expansion.
How long does farm loan approval take?
It varies by lender and how complete your documents are. Rural valuations and complex structures can take longer than a standard home loan.
General information only; it does not consider your objectives, financial situation or needs.
