When Should You Lease vs. Buy Farm Equipment?
19 January 2023, US: Financing farm equipment for your operation involves a lot of decision making. Having the right equipment can make a huge impact on your operation.
Obtaining farm equipment and machinery for your operation can represent a significant cost in your budget. But having the right equipment can help you more effectively manage your bottom line whether you’re growing your own crops, or offering professional services like custom application, spraying, aerial imagery, consulting and more.
When it’s time for financing, you’ll want to weigh the options of buying versus leasing equipment.
Buying Farm Equipment
Here are some reasons why you may want to purchase your own equipment:
- Buying is a good option if you plan to keep the machine long-term
- If you have a preference for ownership
- New equipment can be very expensive so buying is a good alternative if you’re looking for an older piece of equipment
Leasing Farm Equipment
Here are some reasons why you may want to lease equipment:
- Want to have the newest equipment with the latest technology
- Are looking to lower your fixed costs
- Don’t want to be locked into a long-term contract. A typical lease lasts from 24-36 months
- Want to reduce the repair costs and potential downtime of using older equipment
- Want to know your specific cost per acre
Ready to apply for a farm equipment loan?
No matter which approach you take, we’re here to help your operation grow with flexible financing solutions on most ag-related products. Connect with a Loan Advisor today to get a quote.
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