Leasing

Why & When to Lease

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 transitioning 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.

Succession Planning Lease

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.

Equipment Lease

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.

Facilities Lease

Tailored to meet your business needs, flexible lease structures allow you to take advantage of the great benefits 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
  • Greenhouses

Learn more about the benefits and considerations of facilities leases

Reasons to Lease

Here's how leasing can be a smart approach to financing:

  • 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.

Resources

Benefits of Facility Leasing

Leasing an agriculture facility has many benefits and may be the smartest approach you can take toward your financing and securing the future of your farm for future generations.

Ready to get started?

Interested in leasing? Contact us to learn more about your options.