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Ag Leases

Discover the benefits of leasing for farm storage buildings, grain bins, cattle and hog barns, farm equipment, vehicles and more.

Key Benefits of Leasing with Us

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Tax Advantages

Lease payments are typically 100% deductible.

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Improve Cash Flow

Allows you to gain the grain, equipment or livestock storage you need, while keeping other credit sources available.

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Ownership Transition

Leasing can help you transition ownership to the next generation at the end of the lease.

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Local Service

Our knowledgeable local financial team serves you for the life of your lease.

Farm Equipment Leasing

For farm equipment leases, we offer AgDirect® equipment financing available through equipment dealers, at auctions and for private party sales. AgDirect can develop a custom finance solution to fit your individual situation.

AgDirect® is an equipment financing program offered by Farm Credit Services of America and other lenders, including participating Farm Credit System Institutions.

Ag Leasing Terms

Fixed Costs

Leasing offers attractive fixed costs with lower payments, which in most cases, are tax deductible.

Convenience Options

Conserve your cash with low or no down payment, up to 100% financing.

Flexible Terms

Flexible lease structures, payment schedules, end-of-lease options and maturity dates let you tailor the lease to your needs.


Leases are subject to eligibility and credit approval. 

Available rates and terms, including the annual percentage rate (APR) are subject to change without notice.

Purchase vs. Lease Comparison

To demonstrate the potential benefit of a leasing program, we’ve provided a purchase vs. lease comparison, illustrating different ways to expense a farm building. Leasing allows a balanced tax management strategy as compared to a traditional depreciation or bonus depreciation.

Depreciation vs. True Lease: 7-Year Term

A customer is constructing a new farm building. Assume a cost of $300,000 and first rental payment at close with a 20% purchase option.



60% Bonus Depreciation Plus Interest


Non-Bonus Depreciation Plus Interest



Year 1$184,500$11,250$47,600
Year 2$28,183$41,177$47,600
Year 3$26,146$38,164$47,600
Year 4$24,100$35,218$47,600
Year 5$22,021$32,304$47,600
Year 6$19,779$29,292$47,600
Year 7$17,476$26,274$47,600
Total Expensed at Year 7$322,204$213,681$333,203

Calculations based on 8% effective loan/lease rate comparison. Implied rates stated herein are for illustrative purposes only to assist in comparing lease payments to the cost of a loan. They are not intended as, and should not be relied on for, tax, legal, or accounting advice. Parties should consult their professional advisors regarding appropriate treatment of any lease transaction.

Additional Benefits

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Maximize Tax Benefits

For tax purposes, we offer both true leases and conditional sales leases. True leases can be treated as a business expense and the entire lease payment may be tax deductible. Alternatively, a conditional sales lease can provide tax benefits that mirror those for owned equipment, such as depreciation and other eligible deductions.

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Capital Preservation

Maintain financial flexibility and stability by preserving working capital. Leasing can provide 100% financing, including soft costs, with no down payment required so you can keep more cash on hand. Benefit from fixed rate financing and mitigate rising rates in the future. Leasing can also help manage loan covenants and be another source of financing.

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Control Cash Flow

Fixed rates and flexible payment schedules allow matching payments to cash flow and the profits generated by the leased equipment. Lease payments can be tailored to the cash flow of your business. Monthly, quarterly, semi-annual, and annual, as well as seasonal, harvest pay, and step up or step down payments are available.

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Planned Replacement

With lease financing, you can replace equipment regularly. A planned replacement cycle ensures access to reliable, low maintenance equipment at all times and avoids equipment obsolescence. 

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Flexible Financing

Leasing offers flexible financing options either before or after facility construction or equipment acquisition. New projects can be financed during construction and placed into a fixed-term lease at completion. If construction has already been completed or equipment has already been acquired, we offer a purchase leaseback to replenish working capital and leverage the tax benefits of leasing.

Farm Credit Services of America customer

Ag-friendly Land Loans.

Finance or refinance farmland, pasture or acreages with long-term fixed rates and flexible payment structures built for agriculture. Work with a local financial officer or apply online. 

Customized Leasing Options

Leasing can help save costs, improve cash flow and gain tax advantages. It can also help transition ownership of a facility to the next generation at lease end. 

Lease options include: 

  • Livestock facilities
  • Machine sheds
  • Grain bins
  • Commercial buildings
  • Farm equipment

We welcome the opportunity to talk about the leases we offer and to determine the best type of financing for you. For more information on leasing, contact your local FCSAmerica office.


Get Started

Connect with a local office or contact us for more information.