Buying or renewing farm equipment is often one of the biggest investments after land. Tractors, combine harvesters, milking equipment, irrigation systems, storage buildings: each purchase commits the farm for several years and must be financed in the best way given tax, self-financing capacity and the equipment's useful life.
Agricourtage helps farmers finance all their equipment investments, from a single machine to a multi-year financing line. Leasing, medium-term loans, contract hire: we analyse the available solutions and select the one that best fits your tax position and cash flow.
Why optimise your equipment financing?
How you finance a piece of farm equipment has a direct impact on your tax, your balance sheet and your cash flow. A €120,000 tractor can be financed in radically different ways depending on your French tax regime (régime réel simplifié or réel normal), or on whether you want to preserve or optimise your borrowing capacity.
Even if your bank says no, we may be able — through certain specialist lenders and after reviewing your situation — to find a way for you to get the equipment you need.
Farm equipment financing options
The standard medium-term loan
A medium-term loan is the most common way to finance farm equipment. Its term is usually aligned with the equipment's economic life. It appears on the farm's balance sheet and gives rise to tax-deductible depreciation.
Equipment leasing (crédit-bail mobilier)
Leasing lets you use equipment without owning it for the term of the contract. Lease payments are fully deductible from taxable profit, which can be a significant tax advantage depending on your tax regime. At the end of the contract, you can exercise the purchase option at a residual value set in advance, usually a nominal amount.
Contract hire (location financière)
Broadly similar to leasing, contract hire mainly applies to vehicles and some equipment. It is very flexible and lets you renew equipment regularly without a long-term commitment.
Subsidised loans for CUMAs
If you invest through a CUMA (Coopérative d'Utilisation de Matériel Agricole — a farm machinery-sharing cooperative), specific financing arrangements may apply, including subsidised rates and collective guarantees. Agricourtage knows these schemes and can help you use them.
Financing farm buildings
Building or renovating farm buildings (cattle sheds, barns, milking parlours, silos) follows a different logic from mobile equipment, with longer financing terms (15 to 20 years) and mortgage security. Agricourtage structures this financing in line with your overall investment plan.
Leasing vs buying: how to choose?
These criteria are key to your decision:
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Your tax bracket: the higher it is, the more valuable the deductibility of lease payments
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Your cash needs: leasing usually requires little or no upfront deposit
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Obsolescence: for fast-changing equipment (digital, robots), contract hire makes regular renewal easier
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Your balance sheet: leasing doesn't weigh on the balance sheet, which can make other financing easier at the same time
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The equipment's actual lifespan: equipment that lasts 20 years justifies buying; equipment replaced every 5 years favours hiring
What equipment do we finance?
We look at all types of farm equipment, including:
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Tractors and self-propelled machines (combines, forage harvesters, self-propelled hoes)
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Milking and herd-management equipment
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Tillage, drilling, fertiliser and crop-protection equipment
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Irrigation and livestock-watering systems
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Storage and drying equipment (silos, grain bins, dryers)
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Farm buildings (cattle sheds, barns, livestock housing)
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Solar PV and renewable energy installations
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Digital and precision-farming equipment