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Leasing Vs Buying Ag Machinery: Weighing the Economics

Summary

When assessing whether to buy or lease ag machinery for your operation, you'll want to understand the factors affecting the economics as well as compare the financial aspects of each option. Evaluating these two options begs the question, does leasing offer enough value per acre over purchasing? Answering this question requires understanding the real cost of equipment purchases versus the cost of making a lease payment. We will first look at the characteristics of an equipment purchase, then the characteristics of a lease payment. We also will do a side-by-side comparison of the two options.