When farming is your business, you need to keep going when conditions are optimal. Being down for repairs at a crucial time during planting or harvesting can cost you part or all of your crop and profits. Older machinery has a propensity for breaking down at critical times, as you are pushing hard to get the job done.

Consider agricultural equipment leasing when you need new machinery to stay competitive, but don’t have the cash needed for down payments and sales tax. Agriculture leasing frees up cash for other purposes and helps you budget your costs better. Set up lease payments to coincide with expected sales of crops, for even greater budgeting flexibility. At the end of the lease, you have options of extending the lease, buying the equipment at the residual value or simply returning the equipment. Read the fine print in your lease agreements and be sure you understand each clause before signing. The following advantages may convince you to lease your agricultural equipment:

1. Greater access to technological advances in machinery.

2. Less down time for repair work.

3. Increased productivity resulting in higher profits.

4. Reduced repair costs.

5. Entire lease expense may be tax-deductible.

Action Steps
The best contacts and resources to help you get it done

Decide if you should lease or buy your farm equipment

There are many useful sites on the Internet to help you decide whether you should lease or buy.

I recommend: John Deere has a comprehensive manual to help you decide on farm equipment financing methods. Deere & Co. is also an ag leasing company. Go to All Options for great information on ag equipment leasing versus buying.

Get quotes for agriculture equipment leasing from several online sites

Choose reputable companies that have been in the agriculture equipment leasing and farm equipment financing business for a number of years.

I recommend: Find the equipment you need, then fill out an online application at Allison Leasing Company. Use the equipment lease calculator at Tiger Leasing to decide if leasing is the right option for your farm equipment financing. In addition, try Leasource.com for competitive quotes for agricultural equipment leasing.

Consider available payment options

Set up your payments to coincide with seasonal inflows to free up your company's cash and credit.

I recommend: View payment options for agricultural leasing at Capital Funds Leasing. KISCO Leasing offers flexible payment options for agriculture leasing.

Look for used equipment and compare financing

You may decide you would rather own the farm equipment you are using. Consider used equipment and agricultural equipment finance sources.

I recommend: C.H. Brown Co. has a selection of used farm machinery and offers financing to qualified candidates from all over the United States. Tractor House offers used equipment and agricultural equipment financing in cooperation with Wells Fargo Equipment Finance, Inc.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Put together a balance sheet and business plan before filling out loan or lease applications for farm equipment leasing or purchasing purposes.
• •  Ask for customer references from each agriculture leasing company you are considering and check them before leasing.