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Grain Silo Finance

Compare finance for grain silos from £8,000 to £400,000, HP for freestanding steel silos, or a secured loan or agricultural mortgage for a permanent grain store.

Can you finance a grain silo?

Yes, grain silos 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 £8,000 to £400,000, and most deals are written over 24-84 months with a deposit of around 15-25%. Decisions typically take 24–48 hours for hp. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£8k – £400k

Approval Speed

24–48 hours for HP

Several weeks for a mortgage-funded grain store

Rates From

5.5% APR

What would a grain silo 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 grain silo price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 7.0% APR
Term
24-84 months
Deposit
15-25%
Ownership
Yours at the end
Best for
Best suited to a freestanding, bolted steel silo mounted on legs, which is closer to a piece of moveable plant than a fixed structure and is generally the easier of the two to finance this way

Secured Business Loan

Rate
From 7.5% APR
Term
3-10 years
Deposit
Varies with security offered
Ownership
Fixed monthly repayments
Best for
Usable for either a freestanding silo or a grain store, secured against farm assets rather than treated as a straightforward equipment purchase

Commercial or Agricultural Mortgage

Rate
From 5.5% APR (variable/tracker options available)
Term
5-25 years
Deposit
Typically 20-35% or existing land equity
Ownership
Long-term secured borrowing
Best for
The usual route for a silo built into a permanent, poured-concrete grain store as part of a farm building project

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
Collinson County S1 Galvanised Steel Silo, 4-37 tonne £8,000 - £35,000 (specification class, price not independently verified) Freestanding Bolted Steel Silo
Collinson County HS5 Silo, 7-32 tonne £12,000 - £40,000 (specification class, price not independently verified) Freestanding Bolted Steel Silo
Freestanding Flat-Bottom Bolted Silo, Large Capacity £20,000 - £90,000 (specification class, price not independently verified) Freestanding Bolted Steel Silo
Steel-Framed Grain Store Building with Integrated Silo Bays £150,000 - £400,000 (specification class, price not independently verified) Permanent Grain Store Building

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Tax benefits

Grain silos sit in a genuine grey area, and the right tax treatment depends on the type of silo you are buying rather than the fact that it stores grain. A freestanding, galvanised steel silo bolted to a concrete base and mounted on legs is generally the easier case, since it functions much like a piece of equipment performing a specific job and can, in principle, be unbolted and moved to another site. A large silo built into a permanent, poured-concrete grain store as part of a new farm building is a different matter, and is more likely to be treated as part of the building structure rather than as plant. This distinction affects both the capital allowances treatment and which type of finance is realistic, so it is worth discussing your specific silo and how it will be fixed with your accountant before assuming either treatment applies.

Market context

Grain silos are typically bought by arable farms and grain merchants wanting to hold grain on-farm through the season rather than selling everything at harvest, when the market is often more crowded with sellers. Feed compounders and combinable crop contractors also invest in silo capacity to secure their own supply. Replacement or expansion is usually driven by growing acreage, a new combine with higher output needing somewhere to put the extra volume quickly, or a new contract growing agreement that specifies on-farm storage. Freestanding bolted steel silos have a reasonably active secondhand market, since they can be dismantled, moved and re-erected on another site, which is not something that applies to a silo built into a permanent poured-concrete grain store.

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

Is a grain silo financed like a machine or like a building?
It depends on how the silo is constructed. A freestanding galvanised steel silo, bolted together and standing on legs on a concrete base, is generally treated as moveable plant and can often be financed with hire purchase in a similar way to farm machinery. A silo that forms part of a permanent, poured-concrete grain store built as a farm building project is more likely to be treated as part of the building, and is usually funded through an agricultural mortgage or a secured loan against the farm rather than equipment finance. It is worth confirming which category your specific silo falls into with your supplier and your accountant before you apply.
Can I get hire purchase for a grain silo?
Hire purchase is realistic for a freestanding, bolted steel silo that could, in principle, be dismantled and relocated, since lenders are generally more comfortable financing something with clear resale and relocation value. It is much less likely to be offered for a silo integrated into permanent grain store construction, since that is closer to a building project. If your quote combines a freestanding silo with significant groundworks or a purpose-built store around it, it is worth asking your finance broker to look at the whole project rather than assuming the silo element alone determines the answer.
What is the difference between financing a silo and financing a whole grain store building?
A silo on its own, particularly a smaller freestanding steel unit, is a single piece of equipment that can be quoted, delivered and installed relatively quickly. A grain store building, by contrast, is a construction project involving groundworks, a steel or portal frame, cladding, and often several silos or bulk storage bays within it, typically costing considerably more and taking months rather than weeks to complete. The building element of that project is generally financed as a commercial or agricultural mortgage or a secured loan, separate from any freestanding equipment within it, such as conveying or drying machinery.
Does grain storage capacity need to match a specific requirement?
There is no fixed legal minimum for on-farm grain storage capacity, but lenders will generally want to see that the size of silo or store you are financing is reasonably matched to your acreage and typical yield, since an oversized installation can be harder to justify from an affordability perspective. Most farms specify capacity against a normal harvest with some headroom for a good year, rather than the maximum theoretical yield.
How quickly can I get grain silo finance?
A straightforward freestanding steel silo financed on hire purchase can often be approved within 24 to 48 hours once a supplier quote is available. A secured loan or agricultural mortgage for a larger grain store building typically takes considerably longer, often several weeks, since the lender will want a fuller picture of the farm's finances, existing security and the building specification before approving borrowing of that scale.

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