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Dairy Equipment Finance

Spread the cost of dairy shed equipment from £15,000 to £180,000+ with flexible finance options. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a dairy equipment?

Yes, dairy equipments are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £15,000 to £180,000, and most deals are written over 24–72 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£15k – £180k

Approval Speed

24–48 hours

Same-day for < £100k

Rates From

4.6% APR

What would a dairy equipment cost per month?

£65,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical dairy equipment price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 5.0% APR
Term
24–72 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Dairy farms wanting to own the equipment outright

Finance Lease

Rate
From 4.6% APR
Term
24–72 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Tax-efficient, spreads the cost of dairy shed infrastructure across several years

Operating Lease

Rate
From 5.4% APR
Term
36–60 months
Deposit
None required
Ownership
Return at end
Best for
Farms upgrading cooling or handling equipment as milk contracts evolve

Representative example

On a purchase price of £65,000: a 10% deposit of £6,500, then 48 monthly payments of £1,371 at 5.9% APR representative (fixed). Total amount payable £72,308, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
5,000-Litre Bulk Milk Tank £15,000 – £28,000 Refrigerated Bulk Milk Tank
10,000-Litre Bulk Milk Tank £30,000 – £50,000 Refrigerated Bulk Milk Tank
Plate Cooler and Heat Recovery System £20,000 – £40,000 Milk Cooling and Heat Recovery
Cubicle and Handling Refit Package £60,000 – £180,000 Dairy Shed Cubicles and Handling Refit

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Tax benefits

Dairy plant and equipment, including bulk tanks, coolers, and cubicle fittings, generally qualifies for Annual Investment Allowance (AIA), letting you deduct the full cost from taxable profits in year one, up to £1,000,000. HP gives access to capital allowances; lease payments are fully deductible from farming profits. Structural shed work is typically treated separately under the Structures and Buildings Allowance.

Market context

This category covers the wider dairy shed infrastructure around milking itself, bulk milk cooling, plate coolers and heat recovery, and cubicle and handling refits, which most dairy farms invest in periodically alongside, rather than instead of, their parlour or robots. Milk buyer contracts increasingly set minimum standards for milk cooling and storage, which is a common trigger for bulk tank upgrades, while cubicle and handling refits tend to follow herd growth or a move towards improved cow comfort and welfare standards. Because this equipment runs every day of the year, replacement is usually planned around reliability and contract compliance rather than a fixed number of years, and established UK dairy equipment suppliers provide ongoing servicing that supports resale value.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

What counts as dairy equipment for this type of finance, as opposed to a milking parlour or robot?
This category covers the wider dairy shed infrastructure, bulk milk tanks, plate coolers, heat recovery systems, and cubicle or handling refits, rather than the milking system itself. If you're financing a new parlour or robotic milkers, those are covered separately, but it's common to finance both together as one project.
Does my milk buyer's contract affect what equipment I need to finance?
It can. Milk buyers increasingly set minimum standards for cooling times and storage temperature as part of their supply contract, so it's worth checking your contract requirements before specifying a bulk tank or cooling upgrade to make sure the finance covers what you actually need.
Can I finance a used bulk milk tank?
Yes. Most lenders finance used bulk tanks up to around 10–15 years old, subject to condition and a check of the refrigeration unit and agitator. Bulk tanks are relatively durable, so well-maintained used tanks are often financeable at reasonable rates.
Are repayments structured around the milk cheque?
Because dairy income arrives as a fairly regular milk cheque rather than a single seasonal payment, dairy equipment finance is usually structured as a standard monthly repayment, though a lender can flex the profile if your farm has a genuinely uneven income pattern.

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