Hobby farm loans  - Rivendell Finance 
                     Things to Consider Before Taking     
Hobby Farm Loans for Equipment
Since the outbreak of the COVID-19 pandemic, the hobby 
farm equipment market has cramped and caused 
considerable inconvenience for farmers and ranchers in 
Australia. This situation led to skyrocketing demand for both 
new and used hobby farm equipment, costs have increased 
while supply has been hampered. 

According to studies, over 40 per cent of manufacturers are 
feeling the impacts of hobby farm machinery shortages after 
the pandemic. Along with that, 27 per cent of manufacturers 
are struggling to get spare parts for repairs. Having decent 
and well-maintained farm equipment is necessary for the 
success of daily farm activities and is critical during the 
harvest season. Even when farmers have placed an order for 
equipment, they usually face extended waiting periods that 
can hand out a strain on production.
Understanding Hobby Farm Loans for Equipment
Hobby farm loans backed by land equity can help ease the financial stress of 
paying cash when purchasing farm equipment, but it is crucial to figure out when 
and how they should be used responsibly to avoid love utilising yourself. 
Before buying machinery, you should carry out a cost-benefit analysis and look at 
the following aspects to make sure it is the best option for your activity: 
 
● Annual ownership expenses and operation charges 
● Price and availability of renting or leasing machinery 
● Convenience charge of using capital that could be allotted elsewhere 
When buying farm equipment, it is crucial to secure financing 
with your most favourable interests in mind. Oftentimes, 
people will earn loans at the dealership. Land lenders could 
be a good choice for borrowers exploring a different option. 
Yet, when looking at taking out a hobby farm loan backed by 
the value of your land, it is essential to ensure terms do not 
reach out past the economic life of your farm machinery. 
Because the economic life of farm machinery is usually seven 
to 10 years, getting a short-term loan is mostly the best route. 
 
Another critical consideration is making sure that the 
consolidation of your farm loan has beneficial terms to avoid 
overleveraged. Consolidating different equipment loans into an 
interest-only loan can be an adequate way of facilitating debt 
payments and boosting immediate liquidity. However, this loan 
structure usually serves as an interim solution to push 
operating capital and should be reassessed once a more 
robust farm cash flow is in place.
 
Thank You
Presented By , Hobby Farm 
Finance