Farm Equipment Leasing
Today's operations require a significant investment in farm machinery and ag equipment. Ag Equipment Leasing is a viable way for producers to conserve capital and leverage advances in technology at the same time. Premier Farm Credit offers farm credit leasing on a wide variety of items, such as bins, sprinklers, equipment, buildings, vehicles, etc.
Here are some possible advantages to leasing:
- Pay Nothing Down - Typically, down payments aren’t necessary - just the first payment is due when the lease begins. Often, leasing can provide 100% financing.
- Maximize Tax Benefits - Lease payments may be fully tax deductible under a True Lease, lowering taxable income and allowing faster expensing of equipment compared to traditional depreciation. A Conditional Sale Lease allows the lessee to take advantage of deductions available as tax owner of the equipment.
- Control Cash Flow - Fixed rates and flexible payment schedules allow us to match payments to cash flow and the profits generated by the leased equipment.
- Preserve Capital - By leasing, you can preserve cash, working capital and other credit lines for expansions and day-to-day expenses.
- Standardize Replacement Cycle - A planned replacement cycle ensures access to reliable, low maintenance equipment at all times.
- Retain Future Flexibility - When the lease ends, the lessee can purchase and continue using the equipment or return it and get a newer model.
- Estate Planning Tool - Use leasing as a simple way to transition equipment to the next generation at the end of the lease term.
Please note: You should consult with your accounting, tax, or legal advisor to choose the right type of lease for your situation.