Farm Leases

Leasing is one of the fastest growing methods of financing new and used equipment, vehicles, machinery and facilities today. It provides you the flexibility to add new equipment, upgrade your current equipment and capitalize on tax and other benefits.

Terms of up to 7 years are available on equipment. Longer lease terms (up to 10 years) are offered for facilities. You can match your lease terms to the useful and earning life of the equipment or facility. And you can match your payment plans to your operation’s needs – monthly, quarterly, semi-annual or annual payments.

What is a lease?

A lease is an alternative financing arrangement that allows you to pay for the use of new or used equipment or facilities. You’ll only pay for the use versus the ownership of the capital item. Typically, this means making an up-front payment, then making periodic payments over the course of the lease period. Leasing permits you to closely match your rental payments to the revenue produced by using the equipment.

Why should I consider leasing from FCS?

• Flexibility. All farm operations have different needs, different cash flow patterns and different income streams. FCS lets your individual business situation define the lease terms. You’ll get the use of an asset for a specific period of time, and have the flexibility of either fixed or variable rental payments.
• Tax Benefits. Rather than deal with depreciation schedules and tax complexities, you simply make the lease payment and deduct it as a business expense. Lease payments can be 100% tax deductible (consult a CPA or tax specialist).
• Conserve Working Capital. You’ll get 100% financing to keep your lines of credit open to meet short-term requirements. Lease payments can also provide improved cash flow when compared to loan payments or cash purchases. Your first lease payment is usually less than a loan down payment, and in some states sales tax is collected over the life of the lease, not paid in advance.
• Less risk of Holding Old Equipment. When a new generation of equipment becomes available, you’ll have the flexibility to upgrade or add on. The choice is yours. You’ll never be faced with the burden of owning old or obsolete equipment.

What can I lease?

Virtually anything! New and used equipment, new farm buildings and special purpose structures, such as confinement feeding facilities or grain bins.

What are my lease-end options?

At the end of the lease you can:

• Purchase the equipment for a residual value established at the beginning of the lease - residual value is commonly 10%, 20%, 30% or 40% of the original value of the equipment
• Return the equipment to FCS without further obligations
• Re-lease the equipment or facility

To request a Leasing Brochure, please click here.