Today's operations require a significant investment in machinery and equipment. Leasing is a viable way for producers to conserve capital and leverage advances in technology at the same time. Premier Farm Credit offers leases 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.


Dan Firme

Dan Firme farms and ranches near Haxtun, Colorado with his wife Steffany and their two sons. Premier Farm Credit is a proud supporter of their future.