Farmers turn to leased equipment

Record interest rates are changing the way farmers are buying tractors and combines. Many now prefer to lease or pay straight cash rather than pay 14 percent to 17 percent interest or higher.

As a result, farm machinery manufacturers are seeing an upswing in their leasing business. "Our leasing volume has almost tripled over this time last year," says E. W. Muehlhausen, vice-president, marketing, Steiger Tractor Inc., a manufacturer of high- horsepower four-wheel-drive tractors in Fargo, N.D.

Even though the annual payment for the lease might be greater than an annual loan payment for the same equipment, a lease makes good business sense for farmers. This is because the entire lease payment can be deducted from taxable income, while only the interest expense can be deducted for a loan.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK