Grain Bin and Grain Dryer Financing in Canada

Can grain bins, grain dryers and handling equipment be financed together?

Sometimes, yes. The key is to show the lender the whole project, not just the price of one bin or dryer.

A farm may need a storage bin, a dryer, receiving and unloading equipment, fans and controls. It may also need concrete, electrical service, a gas connection and installation work. Some lenders will review these costs together. Others may finance only certain equipment or require separate funds for construction and site work.

Before you order, ask the supplier to write down each cost: equipment, delivery, installation and site work. That gives a financing partner a much clearer starting point.

For broader equipment needs, see farm equipment financing in Canada and equipment financing. Buying a tractor? See our tractor financing guide.

What belongs in a grain storage and drying project?

Grain bins and storage silos

• What they do: Hold grain until it is moved or sold.
• Ask the supplier: Capacity, foundation requirements and unloading system.

Grain dryers

• What they do: Bring wet grain to a suitable moisture level.
• Ask the supplier: Type, capacity, fuel, controls and approvals.

Augers and conveyors

• What they do: Move grain from one part of the site to another.
• Ask the supplier: Length, flow rate and installation needs.

Receiving pits and bucket elevators

• What they do: Bring grain into storage or drying systems.
• Ask the supplier: Site layout, capacity and safety systems.

Fans, aeration and monitoring

• What they do: Move air and track grain condition.
• Ask the supplier: Fans, sensors, wiring and controls.

Concrete, electrical, gas and installation

• What they do: Prepare the site and connect the equipment.
• Ask the supplier: Which costs are in the quote and who is doing the work.

A dryer may run in batches or use a continuous flow. Bins may also need different unloading systems. These details matter because they affect the price, installation plan and lender review.

Ask for one project quote, even if several companies are involved. Separate the equipment costs from the work needed to install it. Do not assume every cost will qualify for financing.

Can installation, concrete and utility work be included?

They may be, but there is no single rule for all lenders. A lender may be fine with a dryer or a conveyor. It may treat foundations, buildings and permanent utility work differently.

Show the lender:

• the equipment quote and specifications;
• the concrete and site-work estimates;
• the electrical and gas-work estimates;
• who owns the land and whether the equipment will be fixed to it;
• the supplier's payment dates and expected installation date.

A bin or dryer attached to a foundation may be treated differently from a movable machine. A lender may ask about the landowner, the existing mortgage and how the system is attached. The lender and your lawyer can confirm how the rules apply to your site. Do not rely on a general equipment loan to cover every part of a permanent structure.

If several companies will install the system, read our guide to financing installation and rigging.

How do supplier deposits and progress payments work?

Grain projects are often paid for in stages. Your supplier may ask for three payments: a deposit to hold the dryer, a payment before delivery and a final payment when the work is done.

Illustrative example (not a financing offer):

1. Order: supplier deposit

• Payment event: The supplier asks for a deposit.
• Confirm: Will the farm pay it, or is separate financing needed?

2. Before delivery: equipment ready to ship

• Payment event: The supplier needs the next payment.
• Confirm: When will approved funds be available?

3. Site and installation: concrete or utilities done

• Payment event: The contractor bills for completed work.
• Confirm: Which invoices and proof of work will the lender need?

4. Completion: system installed and accepted

• Payment event: The final balance is due.
• Confirm: What must be checked before final funds are released?

Some lenders pay a supplier after delivery or after documents are signed. Some deals may pay out in stages instead. These stage payments are sometimes called draws. Do not promise the supplier a payment date until the lender confirms when it will pay.

Read more about equipment deposits before delivery.

When should you start planning financing?

Start while you are still comparing equipment and site plans. If you wait until after you order, time can run short. Permits, utility work, the lender's review and supplier payments all take time.

A practical sequence is:

1. Define the problem. Do you need more storage, faster drying or less handling time?
2. Get a project quote. Include equipment, delivery and the work needed to install it.
3. Check the site. Ask your municipality, your installer and your power and gas companies what permits or upgrades you may need.
4. Review financing before signing. Show the lender the complete quote and payment milestones.
5. Confirm the build schedule. Match supplier payment dates with the financing documents and installation plan.

If the goal is to have a dryer ready for harvest, work backward from the expected start date. Real timelines depend on the equipment, the contractor, permits and utility hookups.

What approvals could delay installation in Ontario or Quebec?

Ontario: A gas-fired grain dryer may need approval from the Technical Standards and Safety Authority (TSSA) before it can be used. Ask the dealer or installer which approval your exact dryer needs. Check municipal building requirements early as well. TSSA explains its field-approval process.

Quebec: Ask your municipality about permits for the site. Use licensed contractors for gas and electrical work. Ask them which rules of the Régie du bâtiment du Québec (RBQ) apply. The RBQ has rules for declaring certain gas installation work. The Quebec government also publishes farm-building planning guidance.

These checks can affect when a project is ready to run. They are not financing approvals.

Can you finance just a dryer or add bins to an existing site?

Yes, a stand-alone equipment purchase can be reviewed without financing an entire new grain site. Replacing a dryer, adding a bin or upgrading an auger may be simpler than building a complete system.

The lender may still ask a few questions. Will the new machine connect to older equipment? Do you need extra electrical or gas work? Can the supplier deliver on time?

For an existing site, also explain what will stay in place and what will be replaced. A clear before-and-after plan helps the lender understand the purchase.

What about used grain dryers or bins bought privately?

Used equipment may be considered, but the review often needs more detail. Gather the serial number, age, condition, service records and photos. Add the seller's invoice and the cost to move and install it.

A used dryer may need repairs or new approvals before it can run at the new site. In Ontario, confirm the TSSA requirements with the dealer or installer before buying a used gas-fired dryer. If you buy through an auction, check the payment deadline and transportation costs before bidding.

If the seller still owes money on the equipment, ownership and existing claims need to be checked. In Ontario, liens are registered under the Personal Property Security Act (PPSA). Our guide to PPSA liens on used equipment explains how this works. Your financing partner may request documents to confirm that the equipment can be sold. In Quebec, the RDPRM, the province's public register of rights on movable property, is one place to check for registered rights. Ask a qualified professional which searches and documents your sale needs.

Can you use existing grain storage to raise cash?

Maybe. A lender can review a storage system you already own. It will look at its value, any loan still owed and how the system is fixed to the land. That last point can affect which financing choices are open to you. You can compare equipment refinancing with a sale-leaseback, where you sell the equipment to a financing company and lease it back. Not every bin or dryer will qualify.

Should you use a loan or a lease?

A loan and a lease can both be worth comparing. A loan generally means borrowing money to buy equipment. With many leases, the financing company owns the equipment. The farm uses it and makes the payments. What happens at the end depends on the contract.

For grain bins fixed to land, the financing structure may need extra review. Compare the total cost, the payment schedule, ownership and end-of-term terms. Do not look only at the monthly payment.

Start with our equipment loan versus lease guide. When our farm-specific leasing guide is published, it will cover the agriculture questions in more detail.

Can payments follow the harvest?

Some financing partners may offer seasonal payment schedules. It depends on the lender, your farm income, the equipment and the deal. Ask about this early and share how the farm receives income across the year.

Do not assume the same schedule is available for every bin or dryer project.

Can grants help pay for a grain dryer?

Government programs sometimes help pay for farm energy projects. But they open and close. A grant is not the same as a financing approval.

As of October 29, 2026, the federal Agricultural Clean Technology Adoption Stream is closed to applications. Ontario's Agricultural Stewardship Initiative is also not taking applications right now. Check the official programs before planning around a grant.

Where a current program does apply, ask about both the portion it may cover and when it pays. A lender will still review the rest of the cost and whether the farm can repay.

What documents should you prepare?

• Equipment and installation quotes: Shows the full purchase and build cost
• Equipment specifications and capacity: Shows exactly what the system will do
• Site plan and expected schedule: Identifies foundation, utility and installation needs
• Deposit and progress-payment dates: Helps plan how supplier payments will work
• Farm financial records and existing debt: Helps the lender review repayment ability
• Land ownership or lease information: Helps identify site and equipment questions
• Used-equipment records, if relevant: Helps confirm condition, seller and value

A lender may ask for more or fewer documents. Sharing the full project early can save time later.

For grain-bin and dryer dealers: can you offer customer financing?

Yes. A dealer or installer can refer a farm customer for financing without becoming a lender. Raymond Leigh can review the request and work with financing partners that fit the equipment and transaction. The financing partner makes the credit decision.

You can keep your current lender or broker relationships and use Raymond Leigh as another option. Referrals are available now. Partners who want it can have a co-branded application: an online form that shows your name and ours. It is set up after you join.

Learn about vendor financing and embedded financing.

Frequently asked questions

Can I finance grain bins and a dryer in one application?

A financing partner may review them as one project. Send one full quote. List equipment, delivery, installation, concrete and other site work on separate lines. Not every lender covers all of those costs.

Can installation and concrete be financed?

Sometimes. Some lenders will look at installation costs. Permanent site work may need another solution. Ask what is included before committing to the supplier.

Can grain bins be placed on rented land?

Possibly. The lender may ask who owns the land and what your land lease allows. The landowner may also need to agree to the work. Check these details before you buy.

Can I finance a used grain dryer?

A used dryer may qualify after review of its age, condition, value, seller and installation needs. Confirm approvals needed to operate it at the new site before the purchase.

How long does grain dryer financing take?

There is no single timeline. It depends on the farm file, equipment, lender, supplier documents and any site approvals. Start before supplier deposits or harvest deadlines become urgent.

Can I make payments after harvest?

Some lenders may offer a schedule linked to seasonal income. Ask early. The lender decides whether it is available for your transaction.

Is a grain bin treated as equipment or part of the land?

It depends on the installation and applicable rules. Fixed bins may be treated differently from movable machinery. A lender may ask about the foundation, land ownership and any existing mortgage. Ask your lawyer about your site.

Does Raymond Leigh approve the financing?

No. Raymond Leigh is an equipment-financing brokerage. We help Canadian farms explore options through suitable lenders and financing partners. They make the final financing decision.