Leasing can give you tax and purchase price advantages for facilities, operations and equipment. If equipment is used for agricultural production, it’s probably available for lease. Additionally, as older producers approach retirements and work through the process of transition their farming operation to the next generation, leasing is becoming a more popular option. Leasing provides 100% financing and low payments to preserve cash flow.
Leasing in relation to succession planning?
In addition, to leasing the operation during the transition of a farming operation, an older generation farmer can transition equipment to the next generation by having them purchase the equipment at the end of the lease, thereby transferring ownership of the equipment at the residual value.
If you use it for agricultural production, it’s probably available for lease. This includes tractors, farm implements, above-ground irrigation systems, farm trucks, processing and packaging equipment and material handling equipment.
Tailored to meet your business needs, flexible lease structures allow you to take advantage of the great benefits of leasing can provide on facilities of all types and sizes including:
- Machine sheds and modular buildings
- Grain storage and handling equipment
- Climate controlled buildings
- Livestock facilities
- Pole barns
- Farm shops
Leasing, a smart approach to financing. Benefits include:
- No down payment
- Fixed Rates
- Tax advantages
- Capital preservation
- Customized payment structures
- No appraisal fees
- Sale-leaseback options available
* Disclaimer - If you purchase equipment in the 4th quarter of the year, your eligible depreciation may be negatively affected. To avoid potential depreciation deduction issues, considering leasing the equipment--lease payments are generally 100 percent tax deductible. See your accountant to determine if a lease is better for your tax situation.