Agriculture is one industry where what makes sense one year doesn’t the next. That’s certainly the case as we begin this season.
This year, producers are facing a number of challenges and difficult decisions. Commodity prices are down, while input costs remain high. Cash flow quickly went from strong to strained virtually overnight. Conversations with bankers, CPAs and advisors have gotten a lot more serious. Producers are asking themselves questions about forward marketing, the cost-benefit analysis of inputs, and the wisdom of expanding their operation.
In times when commodity prices are low and the overall attitude tends toward the negative, it’s important that producers look at controlling what they can control. It’s easy to get caught up in the negativity and static, but the best decisions are made in terms of what’s best for your individual operation and your cash flow.
Your ability to control variable costs and produce more bushels for the same money (or less) is key to a sustainable, viable operation. One of the most capital-intensive decisions relates to upgrading equipment—and equipment is perhaps the most important investment you make in your operation.
Up-to-date equipment in good working order is critical to your efficiency, productivity and profitability. Many producers are looking at equipment leasing as a sound strategy in getting the right equipment on their farm, without committing a lot of capital to making an equipment purchase.
Conserving cash is the obvious advantage to leasing. Cash is king. Leasing allows you to hold on to more cash to take advantage of opportunities as you navigate through these challenging times.
Leasing can help you lower your annual equipment costs, optimize depreciation and stabilize your balance sheet.
But it’s not just about conserving cash. Equipment leasing helps eliminate the worry and burden of disposing used and outdated equipment. You are able to determine your true equipment needs before committing to buy. Leasing helps you reduce risk and improve your financial flexibility.
Now that 21st Century Equipment has in-house leasing capability with Panhandle Acceptance Corporation, your leasing options are much broader and more flexible. There is no minimum purchase size and we can structure a lease on just about anything on our lot—from tractors to combines, from sprayers to tillage equipment. We’re able to lease older equipment that other lenders won’t even consider.
Bottom line: We can help you put the right equipment and technology to work in your operation—and, with leasing, we can do it in ways that make a great deal of sense for your business and your cash flow.