The Advantages of Leasing Building Projects: Grain Bins, Buildings, and Irrigation Equipment
When it comes to agricultural construction projects, financing plays a pivotal role in turning ideas into reality. Leasing has emerged as a highly attractive option for farmers and agribusinesses aiming to expand or upgrade their operations. Whether you’re looking to invest in grain bins, buildings, or irrigation equipment, leasing offers a host of benefits that can simplify the process and make it more financially feasible.
One of the most compelling advantages of leasing is 100% Financing Available. AgriFinancial Regional Sales Officer, Mike Reed, says, “You can finance your entire project with a lease. For instance, if you’re putting up some grain bins, you can include the leg(s), dryer, even concrete work into the lease. This simplifies your financing into one package and payment.”
Mike continues, “You can even finance your down payment, meaning there’s no money out of your pocket until the construction is complete. And then, we can structure your repayments to meet your cash flow. Like with the grain bin project I mentioned before, you can select Harvest Plan payments, which is once a year, when you know you’ll have money coming in.”
With low commodity prices, high inputs, and volatile interest rates, it’s no secret that the farm economy has been challenging in recent months. John Witt, National Director of Leasing at AgriFinancial says that his conversations with farmers have recently centered around the difficulty in making decisions for growth in an unstable economy. He offered, “Many are drawn to leasing farm assets because there is no mortgage required with the lease.” He added, “It wasn’t that long ago that many farmers were able to lock in a lower interest rate on their land. They don’t want to disrupt that. If they want, or need, to put up new bins or a new building, they don’t have to with the lease option.”
Leasing grain bins, buildings, and irrigation equipment is not just about affordability – it’s about flexibility, convenience, and peace of mind. By leveraging the advantages of leasing, you can focus on growing your operation while managing costs effectively.