Making Sense of Leasing

August 03, 2020

Farm Credit Leasing (FCL), offered by Farm Credit Associations like Capital Farm Credit, provides a range of flexible leasing options for vehicles, equipment and facilities.

What types of assets can FCL lease? Senior Relationship Manager Landon Reneau says, "ag production equipment; grain, feed, fertilizer and seed storage and handling; building bins and storage; packing and processing; transportation and renewable energy, to name a few."

Leasing makes financial and business sense for agricultural operators and businesses. Benefits include:

  • No down payments so you can retain working capital for other needs
  • Lower monthly payments to improve your cash flow
  • Lower costs as you pay for only the life of the equipment you use
  • Tax benefits with certain types of leases that allow you to deduct lease payments as expenses*
  • Improved efficiency and reduced maintenance costs through access to current equipment and technology

If traditional financing makes perfect sense, then why use leasing as a complement to existing financial solutions? "For any business," says Reneau, "the real value of equipment lies in using it, not owning it."

So how does it work? "With Farm Credit Leasing," says Reneau, "you can work with any manufacturer, negotiate the best price, and we'll step in with the financing for a wide variety of the assets you need to run your business effectively and profitably."

Interested? Contact your Capital Farm Credit office to learn more.


* Tax codes and decisions can be complex. You should follow IRS tax guidelines and consult with your accountant about the best financing alternative to lower your taxes. Always consult an accountant about which type of lease is right for you.