Land Financing
20-year terms. Lower rates. Expand your farm without draining cash.
- Overview
- How It Works
- Interest Rates
- Down Payment Requirements
- Comparison: Land vs Vehicle Financing
- Strategic Expansion
- Debt Management
- Tips & Best Practices
- Troubleshooting
Land financing allows you to purchase farmland over 1-20 years with monthly payments, just like financing vehicles. Unlike vanilla FS25 where you must pay cash upfront, UsedPlus lets you build your farm incrementally.
The Old Way:
- Save $500,000 cash
- Buy field outright
- Drain your working capital
- Wait months to expand again
The New Way:
- Put down 10-35% ($50,000-$175,000)
- Finance the rest over 20 years
- Keep cash for equipment and operations
- Expand strategically as revenue grows
- Select Field - Click on any purchasable field in the map
- Choose Financing - Instead of buying outright, select "Finance"
-
Configure Loan:
- Down Payment: 10-35% (credit-dependent)
- Term: 5, 10, 15, or 20 years
- Interest Rate: 6-12% APY (credit-dependent)
- Review & Approve - See monthly payment before committing
- Start Farming - Field is yours immediately
Choose between cash, finance, or lease when purchasing farmland
Configure down payment and term for land financing - up to 20 years available
Lease farmland with lower monthly payments and balloon payment at end of term
| Term | Monthly Payment (on $500k field, 7% rate) | Total Interest Paid |
|---|---|---|
| 5 years | $9,900 | $94,000 |
| 10 years | $5,807 | $196,840 |
| 15 years | $4,492 | $308,560 |
| 20 years | $3,867 | $428,080 |
| 20 years | $4,824 | $657,760 |
Key Insight: Longer terms mean lower monthly payments but MUCH higher total cost.
Land financing uses the same credit-based interest rates as vehicle financing, but typically 1% lower because land is more stable collateral.
| Credit Score | Vehicle Rate | Land Rate | Spread |
|---|---|---|---|
| 750+ (Excellent) | 8% | 7% | -1% |
| 700-749 (Good) | 9% | 8% | -1% |
| 650-699 (Fair) | 11% | 10% | -1% |
| 600-649 (Poor) | 14% | 13% | -1% |
| Below 600 (Bad) | 18% | 17% | -1% |
- Land doesn't depreciate (unlike vehicles at 80% year 1)
- Can't be destroyed (unlike equipment breakdowns)
- Easy to repossess (field just reverts to seller)
Down payment percentage depends on your Credit-Scoring:
| Credit Tier | Down Payment | Example ($500k field) |
|---|---|---|
| 750+ (Excellent) | 10% | $50,000 |
| 700-749 (Good) | 15% | $75,000 |
| 650-699 (Fair) | 20% | $100,000 |
| 600-649 (Poor) | 25% | $125,000 |
| Below 600 (Bad) | 35% | $175,000 |
Building Credit Pays Off: A 750 credit score saves you $125,000 in down payment vs a 550 score on a $500k field.
- Credit-Scoring - How your score affects land rates and down payment
- Vehicle-Financing - Finance tractors and equipment
- Settings-and-Configuration - Enable/disable land financing
Next: Learn about Trade-In-System for instant cash.