To Lease or Not to Lease?

Today, there are many financial options to purchase equipment, buildings and land to expand a farming operation. Each option offers different pros and cons. Leasing to own has it’s own set of advantages, let’s take a look at what a lease to own program provides.

Minimal Initial Cash Requirement

  • Preserve your working capital
  • Avoid down payment


Exceptional Flexibility

  • Monthly, quarterly, semi-annual and annual payment options
  • Harvest pay options


Simple Collateral

  • No real estate mortgage
  • Fixture filing at the county level


Tax Advantages

  • Lease payments may be fully deductible
  • Write off expense more quickly


What types of equipment can be put on a lease to own program? It does depend on the institution you are going through, but here is a brief list of typical items: machine sheds and modular buildings, grain storage and handling equipment, diary facilities, climate controlled buildings, livestock facilities, pole barns, farm shops, and greenhouses.

Here is an example of the write off benefits of a true lease:


Here are a few business’s that offer farm leasing programs:

Frontier Farm Credit

FCS Financial

Farm Credit of Western KS

Oklahoma AgCredit


With many options available today to expand a producer’s operation, it is important to review, research and consult with trusted professionals before making decisions.


Comment below and share experiences you have with leasing!