Farm Equipment Leasing

AgDirect® offers flexible lease options to grow your business. Built for agriculture, AgDirect has a lease structure to fit your needs.

Why lease with AgDirect?

Typically lease payments are 100% deductible on your taxes, as long as your lease meets IRS qualifications.

Most leases require only the first payment at close; there's no down payment.

Keep your farming equipment and technology up to date, and likely experience lower maintenance costs.

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Capture your true cost per hour. A lease has a constant cost of use with equal payments - depreciation does not vary from year to year.

AgDirect is an equipment financing program offered by Farm Credit Services of America and other participating Farm Credit System Institutions and lenders with lease financing provided by Farm Credit Leasing Services Corporation.

Farm Equipment Lease Rates

Fixed lease rates for new and used farm equipment start at 6.95%!

Agricultural Equipment Leasing Options and Advantages

Our ag equipment leasing options offer a variety of benefits and flexibility.
And since AgDirect is built for agriculture, we can develop a custom finance solution to fit your individual situation.

  • New farm equipment or used farm equipment
  • Equipment purchased through a dealer, auction and private party are eligible
  • Fixed rates
  • Monthly, quarterly, semiannual or annual payments to fit cash flow needs
  • Flexible terms from two to seven years on most equipment*
  • Alternative lease structures available* including harvest pay and half-year leases
  • No prepayment penalties on payoffs under $500,000
  • Available for tractors, combines, forage harvesters, self-propelled sprayers and applicators/floaters, planters and more
  • Available for many popular equipment brands

Please consult a tax professional and consult an attorney with any legal questions.
*Subject to credit approval

AgDirect® Lease Structures

Fixed Purchase (FPO) True Lease Structure

This lease option allows you to write off lease payments as an operating expense, rather than a depreciating asset. At lease termination, you’ll have the option to purchase at a fixed amount stated upfront or return the equipment.

Key benefits: Deduct your lease payments from taxable income.

Purchase or Renew Only (PRO) True Lease Structure

A PRO lease option will allow you to write off lease payments as an operating expense, rather than depreciating the asset. At lease termination, you can either purchase the equipment at a fixed amount stated upfront or renew your lease; there is no option to surrender the equipment.

Key benefits: Higher residuals, lower payments and better cash flow.

Purchase Upon Termination (PUT) Conditional Sale Lease Structure

A conditional sale lease has the same tax treatment as a loan. You’ll take depreciation just like a loan, rather than writing off the lease payment. At lease termination, you'll purchase the equipment at a fixed amount stated upfront.

Key benefits: Lessee takes depreciation and Section 179 benefits; higher residuals, lower payments and better cash flow.

$1 Buyout Conditional Sale Lease Structure

With this type of conditional sale lease, monthly payments are higher when compared to a traditional lease. At lease termination, ownership of the equipment is transferred to you.

Key benefits: 100% financing, take depreciation and/or Section 179 write-off.

AgDirect does not guarantee the tax treatment of a lease. Please consult a tax professional and consult an attorney with any legal questions.

Looking for an AgDirect dealer near you?

Enter your zip code into AgDirect’s Dealer Locator to find a participating equipment dealer in your area.

Farm Equipment Lease Deals

Boost your bottom line with AgDirect's special residuals for new and used equipment.

Tractors | Planters | Sprayers

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Purchase Leaseback (PLB)

Lease equipment you have already paid cash or taken out a loan for with a Purchase Leaseback (PLB), you can replenish working capital and increase tax deductions. The equipment is bought from you and then leased back to you, or your current loan is paid off and the equity is applied to the lease. A PLB can also be used to refinance manufacturer leases or loans at the end of an interest-free waiver.

Farm Equipment Leasing FAQs

Questions about leasing a tractor, combine or other farm machinery with AgDirect? Check out our FAQs on these common topics:

Why would I want to lease equipment?

Equipment leasing brings many benefits to your business – it’s an excellent way to reduce costs, improve cash flow, stay current with farming technology, free up capital and gain tax advantages.

What types of leases are available?

Leases are classified as either true leases or conditional sale leases for tax purposes. With a true lease, you can deduct your full lease rental payment as an operating expense, rather than depreciating the asset. With a conditional sale lease, you take depreciation just as you would with a loan, while still benefiting from the traditional flexible financing offered in a lease.

What is a lease residual?

With a lease, you only pay for the portion of the equipment that will be used during the lease term. The remaining portion of the equipment at the end of the lease term is called the residual. By amortizing only the portion of the equipment that will be used during the lease, you can often benefit from lower payments than with a loan.

Higher residuals result in lower lease payments as less of the equipment cost is amortized during the lease.

Lower residuals amortize more of the equipment during the lease term to build equity faster.

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Learning Center

Agriculture is constantly evolving, which is why AgDirect® works to help you make the right decision for your operation when it comes to financing your next tractor, combine or other ag equipment.


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Financial Lease Inquiry

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