Machines & Maintenance
may be structured around revenue cycles. For producers facing variable weather, market conditions or seasonal workload spikes, this flexibility can help smooth out expenses. Leasing can also help preserve borrowing capacity for other on-farm investments and operational needs.
• Buying either with cash or through loans requires higher initial capital outlay but eliminates ongoing lease payments once the asset is paid off. Ownership can be attractive for organizations with strong cash reserves or those seeking to minimize long-term financing costs.
From a financial reporting standpoint, leasing can sometimes shift expenses from capital expenditures( CapEx) to operating expenditures( OpEx), depending on accounting treatment. This can improve certain financial ratios and make budgeting more predictable.
Resale Value
One of the strongest arguments for purchasing equipment is the potential to recover value at resale. Equipment that is wellmaintained can command significant prices on the secondary market, particularly during times of limited new equipment availability.
However, resale value also introduces market risk. Equipment values fluctuate with demand, fuel prices, emissions regulations and technology shifts. A machine that seems like a solid investment today may lose value rapidly if regulations or customer requirements change.
Leasing transfers much of that risk to the lessor, avoiding concerns about market conditions or obsolescence. This can be particularly important for assets subject to rapid innovation, such as newer-generation tractors, precision agriculture equipment and emerging alternative-fuel farm machinery.
Equipment Availability
Recent years have shown how supply chain disruptions can limit equipment availability and extend delivery times. For farmers and agricultural operations working within tight planting and harvest windows, waiting for new equipment is often not an option.
Leasing can provide faster access to equipment. This can be especially valuable for farmers dealing with seasonal demand, short-term needs or unexpected equipment breakdowns.
Buying ensures long-term availability. Once equipment is owned, it can be used whenever needed without concerns about lease terms, expiration or renewal. That reliability can be important for mission-critical farm assets such as tractors, combines, loaders and other core machinery.
Maintenance
Maintenance is a decisive factor in the lease-versusbuy equation. With ownership, the operation assumes full responsibility for:
• Preventive maintenance schedules
• Repairs and component replacements
• Compliance with safety standards and applicable emissions requirements
16 | 800-247-2000 | 515-955-1600 | May 2026