Farm Equipment Financing Options in Canada

Where can a Canadian farm get equipment financing?

If you are buying a tractor, combine, sprayer or other farm machine, the first question is often where should I apply? There is no single answer for every farm. Your seller, equipment age, financing amount, existing debt and business history can change which route makes sense.

Raymond Leigh helps Canadian businesses review equipment-financing requests, typically from $50,000 to $5 million, through a network of more than 40 lenders and financing partners. We do not replace every farm bank or manufacturer program. A direct option may fit well, and an independent brokerage may be useful when you want another route to consider.

Start with the Raymond Leigh agriculture financing hub for equipment categories and related guides.

Farm Credit Canada (FCC)

Farm Credit Canada offers equipment financing through participating dealers and describes other agricultural financing products on its site. It can be a sensible starting point when buying machinery from a participating dealer. Its current program page sets out its own credit, security, down-payment and payment conditions, which can change.

Ask the dealer whether the specific equipment and transaction fit the current FCC route. Do not assume a dealer-purchase program covers a private sale or an auction. FCC also publishes guidance on planning financing before an auction.

Manufacturer and dealer financing

A dealership may offer a program associated with the machine manufacturer. This may simplify the purchase when a new unit and a current promotion fit the farm's needs. Ask who the legal lender or finance company is, what the offer includes, and whether any promotion depends on the equipment, deposit or contract date.

Compare the total amount payable, ownership terms, any end-of-term obligation and the treatment of trade-ins. A promotional payment is not enough information on its own. If you are a dealer deciding how to offer an additional route, see customer financing for farm equipment dealers.

Bank or credit union equipment loans

Banks and credit unions may finance machinery under a dedicated agricultural facility, an equipment loan or a broader farm borrowing relationship. Existing operating credit, security on the farm's assets and seasonal revenue may affect how a new request is considered.

Ask whether the financing is tied to a particular machine, what security is required, how repayment fits your cash cycle and whether equipment purchased from a private seller can be considered. A farm operating line and an equipment term loan solve different problems; avoid using short-term working capital for a long-lived asset without examining the full cash-flow effect.

Federal and Quebec agricultural loan guarantees

Some agricultural loans are made by a participating financial institution and supported by a government guarantee. The guarantee is not the same as applying to the government for a direct machinery loan.

The federal Canadian Agricultural Loans Act (CALA) program describes eligible agricultural purposes and participating-lender arrangements. Its lender guidelines also distinguish ordinary purchases from related-party purchases, where valuation documents may be needed. Eligibility, limits and security should be checked directly with the lender and the official program.

In Quebec, La Financière agricole du Québec (FADQ) operates an agricultural loan-guarantee framework through financial institutions. A Quebec farm should ask its bank or caisse how the relevant FADQ guarantee would apply to its project. Raymond Leigh does not provide or administer FCC, CALA or FADQ programs.

Independent equipment leasing and financing companies

An independent financing source may consider an equipment loan, lease or other arrangement depending on its product and the file. The important questions are who owns the asset, how payments work, what happens at the end and which costs are included. The treatment of taxes and accounting varies by agreement and province; ask your accountant before choosing.

See our farm equipment leasing guide to compare ownership, payments and end-of-term options. It covers ownership and payment differences in more detail.

When is an equipment-finance brokerage useful?

A brokerage can review the purchase and explore relevant lenders when a bank or dealer program may not be the whole answer. For example, a farm may be buying a used machine at an auction, adding several assets from different sellers or seeking a second assessment after a decline.

Raymond Leigh reviews which financing sources may be appropriate; we do not automatically send every file to more than 40 partners. Each lender decides whether to approve the request and sets its own terms. For the general comparison, see broker versus direct lender.

How should you compare offers?

Question	Why it matters
Who provides the financing?	The dealer, broker and actual lender may be different parties
What equipment is identified?	Make, model, year, accessories, software and seller can affect the file
What money is due at signing?	Dealer deposits are not necessarily lender-required down payments
What is the total cost?	Compare the whole agreement, not only the monthly payment
What happens at the end?	Ownership, buyout and return conditions differ
What existing security is involved?	Prior liens or all-asset security may affect the transaction

Use our guide to comparing equipment-financing offers for a closer review.

What if the dealer or bank declined the request?

A decline from one provider does not mean another provider will reach the same conclusion. It also does not mean approval is available elsewhere. Ask why the first request was declined, what documents need to be clarified and whether the machine, seller or debt position is part of the concern.

See what to consider after a bank decline. For used machinery bought from an auction, retiring owner or dealer, our used farm equipment guide covers the transaction-specific questions.

Ontario and Quebec: what changes?

National financing products can be relevant in both provinces, but public programs, security registries and tax treatment are not interchangeable. In Ontario, secured equipment interests may involve Ontario's PPSA system. In Quebec, the RDPRM is relevant to certain movable-property security checks. Have the relevant party confirm ownership, existing security and the proper process before paying a seller.

Quebec farmers should also compare the role of their caisse or bank and official FADQ programs. Neither a loan approval nor an equipment quotation replaces legal, tax or regulatory diligence.

What should you prepare before choosing a source?

Have a current equipment quote or bill of sale, seller details, machine make and model, new/used status, delivery timeline, required deposit, trade-in details and the purpose of the purchase. The lender may also request business financial statements, current debt information and information about the farm's operating cycle.

A complete picture helps you compare real options instead of guessing which program should work.

Explore a farm equipment financing request with Raymond Leigh

If you are purchasing agricultural machinery, send Raymond Leigh the equipment quote and a short description of your farm project. We can review the transaction and determine which financing partners may be suitable. We are an independent brokerage, not a direct lender; the lender makes the final credit decision and sets the terms.

Common questions

Can a bank and a dealer offer different financing for the same machine?

Yes. They may use different structures, security and eligibility criteria. Compare the complete offers.

Does CALA mean the government lends directly to my farm?

No. CALA is a federal loan-guarantee framework through financial institutions, subject to its current rules.

Can I use equipment financing for land or quota?

Those are different financing questions. This guide concerns machinery. Discuss land, quota and real-property borrowing with the appropriate financial institution and program.