Quick answer
Grain storage and silo finance is a loan or lease that pays for on-farm storage such as silos, sealed bins, grain sheds, aeration, augers and handling equipment. Having your own storage lets you choose when to sell rather than selling at harvest. Ownright Custom Finance arranges grain storage finance for growers Australia-wide.
Key points
- Silos, sealed storage, aeration and handling gear can be financed
- Fixed structures may be security or may sit within a farm facility
- Repayments can follow harvest and sales rather than the calendar month
- Good storage supports marketing choices and reduces cartage pressure
- Suits
- Cropping farmers, mixed farms and grain marketers
- Security
- Equipment, the farm property, or both
- Structures
- Asset finance, farm loan top-up or construction-style funding
- Australia-wide
- Yes
What is grain storage and silo finance?
Grain storage finance pays for the structures and equipment that let a grower hold the crop on the farm: silos, sealed storage, flat-bottom sheds, aeration and cooling, augers, conveyors, monitoring systems and weighing gear. The loan or lease is repaid from future crop income, and in the meantime the grower gains choice. Instead of delivering everything at harvest, grain can be stored and sold when the price, the buyer or the logistics suit.
That choice has real value. The Grains Research and Development Corporation publishes extensive guidance on storing grain, covering hygiene, aeration, monitoring and pest control, because the grain’s quality in storage affects what it earns. Good storage is a business tool, and finance should be structured with the same care as any other.
Who needs it?
- Broadacre growers wanting to avoid harvest-time bottlenecks
- Mixed farmers storing feed grain for their own stock
- Growers aiming to sell into premium or forward contracts
- Farms expanding after buying or leasing more country
- Producers replacing ageing silos or upgrading hygiene and aeration
- Contract marketers and small grain handlers
What do lenders look at?
The purpose and payback. A lender asks how the storage pays for itself: better marketing, less cartage, lower handling charges or reduced grain loss.
The structure. Fixed silos poured on a concrete pad are different from portable bins and bagging systems. Fixed items can be hard to repossess, so lenders may prefer to treat them as part of a farm facility.
The farm’s cash flow. Repayments must sit comfortably in a poor season as well as a good one. Lenders review tax returns, BAS, production records and existing debt.
The supplier and quote. A reputable supplier with a detailed quote gives the lender confidence about cost and delivery. Site works, concrete and electrical should be itemised.
The borrower’s position. Equity in the farm, credit history and the borrowing entity.
Asset loan or farm loan: which suits storage?
| Route | How it works | Suits |
|---|---|---|
| Asset finance | Equipment is the security; fixed term | Portable or separable equipment, strong cash flow |
| Farm loan top-up | Added to an existing property-secured facility | Fixed silos and sheds, lower cost of funds |
| Operating line | Flexible working capital | Seasonal items and temporary storage |
| Staged development funding | Drawn as work is completed | Larger builds with multiple stages |
Our pages on farm equipment finance and farm development loans cover the first and last options in more detail. The guide to chattel mortgages explains a common asset finance structure.
How Ownright approaches grain storage
Trevor Scott’s long experience with farm lending has taught us that storage is rarely just a purchase. It is a decision about marketing, cash flow and risk. We begin by asking what you are trying to achieve: hold grain for a better price, process feed for stock, or ease harvest logistics. Then we look at your finances and existing debt, because the cleanest answer is sometimes to add storage to a facility you already have rather than to start a new one.
We approach lenders who finance farm infrastructure and, where the asset is separable, specialist equipment lenders. We also consider timing: it may be smarter to have finance approved before the quote expires or before the next harvest. If a bank has declined, there are other routes, such as structuring part as asset finance and part as a secured top-up. We arrange this finance in every state and territory.
An illustration
Illustrative scenario only. A cropping family has been selling most of its wheat and barley at harvest because of limited storage. They plan to add silos, aeration and an auger. Equipment would be financed as assets, with site works added through a small top-up to the farm loan. Repayments are set annually after harvest, and the family aims to hold part of each crop for forward sales.
What storage-related costs are easy to miss?
The silo quote is only part of the picture. Allow for concrete pads, power supply, electrical work, earthworks, access roads, council or planning requirements, monitoring systems and the ongoing cost of fumigation and maintenance. Fumigants and grain protectants are regulated, so check current label and APVMA requirements. A financed budget that includes only the headline price can leave you short when the invoices start arriving. We ask for a complete quote so the loan covers the real project.
Mistakes to avoid
- Ordering before finance is approved or at least discussed
- Leaving site works and electrical off the budget
- Choosing repayments that assume a good harvest every year
- Ignoring how a new loan affects other applications
- Buying more capacity than the farm needs
- Overlooking insurance for stored grain and structures
Documents to have ready
- Supplier quote showing capacity and installed cost
- Tax returns, BAS and recent financial statements
- Cropping history and expected production
- Asset and liability schedule
- Details of marketing or forward contracts, if any
The documents checklist and our guide to drought and farm cash flow help you plan for the lean years too. If you are expanding generally, see broadacre cropping loans and farm shed and infrastructure loans.
How do state and seasonal conditions affect storage finance?
The case for storage differs between regions. In the Wheatbelt and parts of South Australia, long hauls to receival points and harvest queues make on-farm storage attractive. In the northern grain belt, summer crops and winter crops can both need space. In wetter regions, moisture management matters more. Lenders understand these patterns, and they know that a poor season can leave a new silo half empty. They will ask whether repayments still work if a crop fails. A multi-year view of yields and income, rather than a single good season, is the most convincing evidence. Our guide to drought and farm cash flow shows how to plan for the lean years.
Should I lease storage instead of buying?
Some growers prefer to rent capacity, use a contractor or buy a smaller portable system first. Leasing keeps balance sheet debt lower and can suit a farm still working out how much storage it needs. Buying makes sense where storage will be used for many years and the farm wants control. A finance lease or hire purchase can offer a middle path for separable equipment. Compare the options in our guide to farm machinery lease versus loan, which applies equally to many items of storage and handling equipment.
Ready to store the crop on your own terms?
Sounds like you’re looking for silo or grain storage finance. We’re the lending experts in funding farm storage that pays its way, so click the button below and see if you qualify, or call 03 7043 7233 to talk through your quote.
How it works, step by step
- 1
Step 1
Send us the storage quote, capacity and your cropping and marketing plan.
- 2
Step 2
We decide whether an asset loan, a farm facility or a mix is the better fit.
- 3
Step 3
We approach lenders comfortable with fixed farm infrastructure.
- 4
Step 4
Funds are released against the supplier or builder, with repayments timed to your income.
Frequently asked questions
Can I finance a silo that is fixed to my land?
Yes, though it may be treated differently from movable equipment. Some lenders finance silos as assets, others add them to a farm loan secured by the property. The right choice depends on the structure, the supplier and your existing debt. Send the quote and we will work out which route fits.
Can I finance grain bags and temporary storage?
Lenders are less likely to take bags as security, but you may be able to fund them through working capital or an operating facility. For larger purchases, ask about equipment finance for the bagging machinery. Tell us how often you use temporary storage and we can suggest options.
Do I need a deposit for grain storage finance?
It depends on the lender, the asset and your position. Strong borrowers with equity in the farm may need little or none, while others may need a deposit. Installation costs and site works can affect how much is financed. We confirm the deposit position before you commit to the supplier.
Can I include augers, aeration and conveyors in the same loan?
Often yes, if they appear on the supplier's quote or invoice. Bundling means one facility and one repayment. Some lenders restrict how much of the total can be installation or site work. Provide a detailed quote and we will check what is allowed.
Can repayments follow harvest and sale timing?
Sometimes. Seasonal, annual or half-yearly repayments are available from some lenders and match farm income better than monthly plans. Deferred payments usually increase the total cost, so we model different structures with you before you choose.
Is storage worth financing for a smaller farm?
It can be, but the numbers need to work. Storage must pay its way through marketing flexibility, lower handling costs or reduced losses. A lender wants to see that repayments are affordable even in a poor year. We talk through the practicalities before you borrow.