Buy or lease farm equipment - how to choose the best option for you

Farm equipment is the most expensive investment after land. But is it better to buy or lease?

Farmer and veteran accountant Lance Stockbrugger says producers should weigh both options carefully before deciding how to make equipment investments.

The comfort of buying

Most Canadian farmers still prefer to buy rather than lease equipment, Stockbrugger says, because it’s familiar. There’s security in the tradition of bringing longevity of ownership and comfort in avoiding the possibility of contract-related surprises back to the farm.

"After farmland, equipment is the most expensive investment. But is it better to buy or lease?"

Leasing, by comparison, is a relatively new business model that usually comes with conditions. Of course, all the conditions are included in the leasing contract. But the concerns for complications — say, if a leaseholder wants to run a machine for longer than detailed in the lease — gives some producers pause.