Most farmers finance a combine with an equipment loan or lease from a Farm Credit program, a bank or a dealer, and time the payments to fall after harvest. AgDirect, a Farm Credit equipment program sold through dealers, posted fixed rates of 6.95% to 8.50% and a 6.25% variable rate for September 17–30, 2026, with terms up to seven years. USDA’s Farm Service Agency (FSA) can also finance equipment through direct operating loans of up to $400,000.
This page is part of our farm equipment financing guide and focuses on one of the largest machinery purchases on a grain farm. It covers how combine loans and leases are priced, how to handle heads and used machines, and whether owning makes sense at all. For smaller machines, see tractor financing.
Why a combine is financed differently
A combine earns its money in a few weeks a year, and you often buy it as a package: the machine, a corn head or draper head, and sometimes a grain cart. That shapes the financing in three ways:
- Payment timing matters more than the monthly amount. Grain money arrives after harvest, so many growers choose annual or semiannual payments. AgDirect lets borrowers “choose monthly, quarterly, semiannual or annual payments” (AgDirect).
- Loan size sets the rate tier. Some programs price by the amount financed, so the head and cart can cost more to finance on their own than rolled into one deal.
- Use per acre drives the decision. A combine that covers few acres may cost more per acre to own than hiring a custom harvester.
AgDirect lists combines, forage harvesters, corn heads, draper heads, grain carts, cotton pickers and windrowers among the harvest equipment it finances (AgDirect).
Where to finance a combine
Figures checked on September 21, 2026. The interest rate is the yearly cost of the money you borrow. APR (annual percentage rate) also folds in certain fees, so ask any lender for both before you compare offers.
| Source | Amount | Rate as published | Term | Good to know |
|---|---|---|---|---|
| AgDirect (Farm Credit program, through dealers) | $5,000 minimum | Fixed 6.95%–8.50%; variable 6.25% (interest rates, Sept. 17–30, 2026) | 2–7 years | Rate depends on amount and term; leases also available |
| Farm Credit association equipment loan | Set by the association | Not published as a single rate; ask for fixed and variable quotes | Set by the association | Patronage may return part of the interest |
| FSA direct operating loan | Up to $400,000 | 5.250% (as of Sept. 1, 2026) | Up to 7 years for equipment | No down payment requirement; for farmers who can’t get credit elsewhere on reasonable terms |
| FSA guaranteed loan (through a commercial lender) | Up to $2,343,000 | Negotiated, within FSA maximums | Set by lender | FSA guarantees up to 95% of the lender’s loss |
| SBA 504 (custom harvesting and other farm-related businesses) | Up to $5.5 million | Tied to 10-year Treasury rates | 10, 20 or 25 years | Equipment must have at least 10 years of remaining useful life |
Sources: AgDirect, FSA direct operating loans, FSA rates, FSA guaranteed loans, SBA 504.
Many dealers also offer the manufacturer’s own finance programs, and a promotional rate is sometimes offered instead of a cash rebate. AgDirect notes that its loans carry “no manufacturer rebate/financing restrictions,” so you can take a purchase rebate and finance elsewhere (AgDirect). Compare the rebate against the promotional rate over the full term, not just the first payment.
Farm Credit associations are borrower-owned cooperatives, and many pay patronage. Capital Farm Credit, for example, says its program “results in a return of a portion of the interest the member paid, which ultimately lowers the effective rate and reduces their borrowing cost” (Capital Farm Credit). Patronage isn’t guaranteed and varies by association and year, so compare quoted rates first.
What a combine loan costs
AgDirect is one of the few ag lenders that publishes a rate sheet. Its fixed rates for September 17–30, 2026 step down as the amount financed goes up:
| Amount financed | Fixed, 2–5 years | Fixed, 6–7 years | Variable |
|---|---|---|---|
| $250,000 and up | 6.95% | 7.25% | 6.25% |
| $100,000–$249,999 | 7.25% | 7.50% | 6.25% |
| $25,000–$99,999 | 7.50% | 7.75% | 6.25% |
| $5,000–$24,999 | 8.25% | 8.50% | 6.25% |
Source: AgDirect rates. These rates are subject to credit review, and AgDirect says applications not funded within 45 days of the application date are subject to rate change. Financing the combine, head and grain cart together can move the deal into a larger-amount tier, while financing a used head or cart by itself can put it in a smaller tier with a higher rate.
FSA’s direct rate is lower, and FSA charges “the lower rate in effect at the time of loan approval or loan closing” (FSA). The trade-off is the $400,000 cap, the FSA paperwork, and the requirement that you can’t get credit elsewhere on reasonable terms. If the machine costs more than the cap, FSA can cover only part of it.
Variable rates at banks and Farm Credit associations are usually priced off a benchmark such as the prime rate, which was 7.00% on September 17, 2026 (Federal Reserve H.15). A variable rate starts lower but moves with the market for the life of the loan.
Buy, lease or hire a custom harvester?
Farm Credit Mid-America points out that “partnering with another producer or hiring a custom operator can reduce financial risk and improve asset utilization” (Farm Credit Mid-America). If you do want your own machine, you have several structures to choose from. AgDirect describes four lease types (AgDirect leasing):
- Fixed Purchase Option (FPO): payments can be written off as an operating expense; at the end you can buy at the residual stated up front or return the machine, and you may trade in at any time.
- Purchase or Renew Only (PRO): same tax treatment, but at the end you buy or renew; there is no walk-away option.
- Purchase Upon Termination (PUT) and $1 buyout: conditional sale leases taxed like a loan, so you take depreciation.
AgDirect’s minimum lease is $10,000, most leases need only the first payment at closing, and there is no early termination fee “as long as the payoff is under $500,000” (AgDirect leasing). A lease with a set residual suits growers who trade combines on a regular cycle. A loan suits those who plan to run the machine for many seasons. Our comparison of equipment financing vs. leasing walks through the math.
Used combines, auctions and private sales
Used combines are common, and most ag lenders finance them. Some programs set a floor for sales outside a dealer: AgDirect requires a sales price of at least $25,000 for auction and private-party purchases (AgDirect). Expect the lender to want the serial number, hours and an inspection or appraisal on older machines.
Farm Credit Mid-America suggests considering “good used equipment that still has a limited warranty instead of buying something new,” and notes that knowing how fast a machine depreciates helps you keep from owing more on it than it’s worth (Farm Credit Mid-America). See used equipment financing and leasing for more on older machines.
Tax treatment in brief
For tax years beginning in 2026, the Section 179 expensing limit is $2,560,000, reduced once qualifying purchases exceed $4,090,000 (IRS Rev. Proc. 2025-32). The IRS also says 100% bonus depreciation is now permanent for qualified property acquired after January 19, 2025 (IRS). A large first-year deduction in a strong year can still leave you with payments and no deduction in later years, so plan it with your tax preparer.
What lenders look for
- Acres and use: how many acres the combine will cover, including any custom harvesting income.
- Trade-in equity: the value of the machine you’re replacing and what you still owe on it.
- Existing machinery debt: total annual equipment payments against farm income.
- Working capital: whether a large down payment leaves enough cash for next year’s inputs.
- Paperwork: for AgDirect, a driver’s license, tax ID, serial numbers and the purchase order, plus the title for titled equipment. AgDirect says most credit decisions come back “within seconds” (AgDirect FAQs).
Common mistakes
- Buying on the operating line. A combine on your operating line uses up credit meant for seed and fertilizer. Farm Credit Mid-America recommends a dedicated equipment loan instead. See farm operating loans.
- Letting the rate lock lapse. If the machine won’t arrive before harvest, ask how long the rate holds.
- Stretching the term past your trade cycle. If you trade every few years, a long term can leave you owing more than the trade-in is worth.
- Buying more capacity than your acres need. Farm Credit Mid-America warns that excess equipment “can eat up capacity in both the farm’s earnings statement and balance sheet” (Farm Credit Mid-America).
Frequently asked questions
How long can you finance a combine?
AgDirect’s posted rates cover terms of two to seven years. FSA direct operating loans for equipment run up to seven years. SBA 504 terms are longer, but only for equipment with at least 10 years of remaining useful life (SBA).
Can I make one payment a year after harvest?
Often, yes. AgDirect offers annual and semiannual schedules as well as monthly and quarterly ones. Ask each lender what payment schedules it offers.
Can I finance a combine bought at auction?
Many ag lenders will, with conditions. AgDirect sets a $25,000 minimum sales price for auction and private-party purchases. Line up financing before the sale so you know your limit.
Can a beginning farmer get a combine loan from FSA?
FSA direct operating loans can be used to “purchase farm equipment,” up to $400,000 in total (FSA). Applicants need acceptable credit history, enough managerial ability and must be unable to get credit elsewhere on reasonable terms.
Next step
If you run a custom harvesting business or a farm-related operation and want to compare equipment loan offers, our equipment financing page explains how SMB Compass works with its lending partners. You can also estimate payments with our equipment loan calculator. FSA loans are applied for directly through your local FSA office.
Sources
- AgDirect: Farm equipment financing and current rates
- AgDirect: Equipment we finance
- AgDirect: Leasing
- AgDirect: Equipment financing FAQs
- FSA: Direct Farm Operating Loans
- FSA: Current FSA loan interest rates
- FSA: Guaranteed Farm Loans
- SBA: 504 loans
- Federal Reserve: H.15 Selected Interest Rates
- IRS: Revenue Procedure 2025-32
- IRS: Guidance on the additional first-year depreciation deduction
- Capital Farm Credit: Patronage
- Farm Credit Mid-America: How to Finance Tractors Wisely
- Farm Credit Mid-America: Farm Equipment Finance
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.