Farm Leasing

When it comes time to finance a piece of farm equipment, a facility improvement or a building project, know that you have options. Everyone's farming operation is different and so are their financing needs. At Farm Credit Services of Mid America we have a variety of financing options to fit your individual needs.

Leasing is one of the fastest growing methods of financing farm equipment and facilities today. More and more, producers are turning to Farm Credit for a full range of lease alternatives that provide wise business solutions.

Most business owners are aware of the low capital outlay with leasing compared to other financing. But, what may be more important are the tax advantages. You should consult your CPA or tax accountant, but in most cases, lease payments are 100% deductible as business expenses. That's a big advantage over a traditional loan, where interest deductions and depreciation represent only a portion of your total expenses.

It's very easy to predict and budget for lease payments because they're the same each period. What's more, from the very first payment to the last, you usually pay less than you would with other kinds of financing, which helps preserve working capital.

Another important reason for the appeal of leasing is its flexibility. Businesses can use leases for everything from equipment, to structures, to vehicles.

Assuming you've made the decision to lease, you have many options. The terms of your lease can be structured to suit individual needs. On equipment, for example, terms of up to 7 years are available, with longer terms of up to 15 years for buildings and medical facilities.

You even have the option to match your lease terms to the use earning life of the equipment or facility. You can choose the type of payment plans that match your unique needs, ranging from monthly to annually.