For farmers and ag producers, there are essentially two types of ag equipment leasing programs to consider when acquiring or refinancing equipment for your operation.
The first type of lease is an operating lease that requires you to make monthly payments, but at the end of the lease term, you return the asset to the lessor with no further obligations. This can be great for heavy use equipment where the real depreciation rate equals the monthly payment.
The second type is a capital lease where you agree to purchase the equipment at the end of the lease term for a predefined payout amount agreed by both parties.