Unlike tractors or trailers, commercial drones:

• Require FAA registration

• Have serialized components (fuselage, batteries, generators)

• May require specialized insurance coverage

• Can present collateral identification challenges

Because of this, financing agriculture drones requires additional documentation and verification to properly secure the lender’s collateral interest.

agGRO understands these nuances and structures financing accordingly.

Loan Terms

• Term Length: 3 years (36 months)

• Downpayment: 20% of total purchase price (required upfront)

• Current Interest Rate: 5.75%

• Loan Amount: Based on purchase price of qualifying drones, robotics, and agricultural technology equipment listed on the purchase order

Eligible Equipment

• Commercial agriculture drones (UAVs)

• Spray drones

• Mapping & precision agriculture drones

We focus on commercial-use drones used in agricultural production.

A 20% downpayment is required to secure financing.

The downpayment may be made:

• In cash

• Through trade-in equipment of equal or greater value

• Repayment Schedule: Fixed monthly payments over 36 months

• First Payment: Begins 30–45 days after loan disbursement

• Payment Method: Electronic payments required

• Prepayment: No prepayment penalties

Security First Bank will provide an ACH Authorization form to set up automatic loan payments.

Applicants should be prepared to provide:

• Equipment purchase order or invoice

• Photo of equipment and serial numbers (for all components over $3,000 in value, if available)

• Prior year tax return

• Current financial statements (may be required)

  • agGRO can provide a balance template, if requested.

Loan approval is based on:

• Personal and/or business creditworthiness

• Farm/ranch or business financial health

• Ability to repay

Loans are typically approved and funded within 1-2 business days if all requested documentation is received in a timely manner.

Proper collateral identification is critical in drone financing.

Fuselage Serial Number

Each commercial drone has a unique fuselage serial number that identifies the aircraft. This serial number must be documented to properly secure the lender’s interest in the equipment.

Without verified serial identification, collateral perfection may not be possible.

FAA Registration

Commercial drone operators are required to register aircraft with the Federal Aviation Administration (FAA).

FAA registration:

• Confirms lawful commercial operation

• Associates the drone with a specific owner

• Supports proper collateral documentation

Registration is a key step in ensuring the lender can perfect its security interest in the equipment.

Insurance is required on all financed equipment. Minimum requirements by the lender typically include:

• Hull coverage (covers physical damage to the drone itself)

Coverage requirements may vary based on borrower creditworthiness, collateral equity, and underwriting review.

Understanding Hull vs. Liability Coverage

• Hull Insurance: Covers physical damage to the drone. This is typically required by the lender to protect the financed collateral.

• Liability Insurance: Covers third-party bodily injury or property damage resulting from drone operation.

  For spray drone operators, additional endorsements or pesticide liability coverage may be required to address chemical application and drift exposure.

  Liability coverage is separate from hull insurance and does not replace required collateral protection.

Commercial Drone Insurance Providers

Commercial drone insurance policies are typically available through agencies specializing in UAV hull and liability coverage. Borrowers are encouraged to work with licensed insurance professionals familiar with commercial agricultural drone operations.

Examples of agencies specializing in drone insurance may include:

• VT Insurance Agency, LLC. – Drone Insurance Experts

• Home - FlightLine Assurance

agGRO does not endorse specific providers and encourages borrowers to evaluate coverage options that best meet their operational needs.

Once approved:

• Loan funds are wired directly to the equipment vendor or dealer

• Equipment is released to the borrower

• Repayment begins within 45 days

agGRO provides ongoing support throughout the life of the loan, including:

• Application assistance

• Payment support

• Questions regarding terms

• Potential refinancing discussions