If the agricultural world's recent trends are to be followed, people will notice that the rates of farming machinery have been increasing without any stoppage.

According to reports, it has been reported that the prices of farming machinery have increased by over ten percent in the past years.

The conditions surrounding agricultural machinery finance are damaging to the overall operations ran by farmers.

With such steep fuel and machinery prices, earning meaningful profits from farming operations is an impossible task. The only way to get healthy returns from crop production is by managing finances efficiently. 

There are two ways through which farmers can get the opportunity of integrating modern machinery into their operations.

The first option is direct purchasing of the equipment and the second option is of machinery leas. To get a better understanding of both methods, below are the advantages that they provide.

Benefits of leasing machinery

The first benefit that leasing provides is that the initial price that the farmers must pay for machinery is significantly less as compared to direct purchasing.

When put against loans, people would find leases easier to handle as the payments that people must make using them are lower.

The machinery can be used for the desired amount of time or until it is needed. Leasing machinery also gives farmers the opportunity of using and experiencing the latest technologies, such as forestry machine lease, without having to pay hefty prices.

Finally, the amount going into leased machinery's payments are viewed as production costs by tax authorities. 

Benefits of direct purchasing

When farmers buy machinery, they have total control over it. Farmers can choose to sell or replace the machinery according to their liking.

Farmers also have the comfort of using purchased machinery for however long they want, unlike leased machinery, which involves time restrictions. In the case of leased machinery, the replacing procedure is a bit complex.

Farmers can show their equipment as assets and, through it, can gain leverage in acquiring loans from banks. The direct purchasing method does not involve any security deposits, which are not valid in leasing machinery. 


Many factors go into deciding which method is more suitable for an individual. Before making the decision, people should check out some key factors such as machinery repair costs.

People who can maintain and bear repair costs can smoothly go with direct purchasing. Still, for the individuals who find repair jobs as unnecessary money wastage, the option of leasing is more suitable. Things such as tax and operational costs should also be considered.