Should You Buy or Lease Farm Equipment?

One of the biggest financial decisions business owners face is whether to buy or lease equipment. This decision becomes even more complex when dealing with expensive machinery and variable income streams.

The Case for Buying

Purchasing equipment outright offers several advantages:

• Long-term cost savings - no ongoing lease payments
• Tax benefits through depreciation deductions
• Complete ownership and control
• Potential resale value

The Case for Leasing

Leasing can be attractive for several reasons:

• Lower upfront costs preserve cash flow
• Predictable monthly payments
• Access to newer technology
• Maintenance often included

Making the Right Choice

The decision ultimately depends on your specific situation, including cash flow, tax position, and long-term business plans. Consider consulting with a financial advisor to evaluate your options.