Leasing Agricultural Machinery: Tractors and Equipment

Which agricultural machines can you lease?

The leasing options for the agricultural sector are very diverse. You can consider tractors, harvesters, feed mixers, and automatic milking systems.

Trailed equipment and specific machines for soil cultivation are also eligible for a suitable lease agreement. This allows you to modernise your entire fleet of machinery.

Seasonal patterns and flexible terms

In the agricultural sector, income is often seasonal. Many leasing companies therefore offer the possibility to adjust the repayment schedule to your company's cash flow. Through business equipment leasing, you can agree on lower instalments during quiet months and higher payments during peak season.

Ownership and maintenance of tractors

If you opt for financial lease, you immediately become the economic owner of the tractor and are responsible for maintenance and insurance yourself.

With operational lease, the company remains the owner, and management can be fully outsourced. Consider what best suits the intensity of your activities.

Which lease types are available for agricultural machinery?

For leasing agricultural machinery, there are basically two main types of lease forms: financial lease and operational lease. With financial lease, you become the economic owner of the machine and bear the responsibility for maintenance, insurance, and depreciation yourself. This form is often attractive for entrepreneurs who ultimately want to own the machine and benefit from the tax advantages of investing. It suits companies with a long-term vision for their machinery fleet and who use the machines intensively.

Operational lease, on the other hand, is more comparable to renting. In this case, the leasing company remains the legal and economic owner of the machine. You pay a fixed monthly amount and, after the lease period, you return the machine or opt for a new one. This can be advantageous for companies that want flexibility, are looking for a carefree solution, or want to quickly adapt to the latest technologies without high investments. Maintenance, insurance, and repairs can often be included in the lease agreement.

• Financial lease: economic ownership with you, legal with the leasing company.
• Operational lease: full ownership and risk with the leasing company.
• Full operational lease: including maintenance and insurance possible.

Why do farmers choose to lease agricultural machinery?

Farmers choose to lease agricultural machinery for various reasons, primarily to maintain liquidity for other business activities. By not having to make a large immediate investment, working capital remains available for, for example, crop investments, inventories, or personnel. Leasing offers the opportunity to work with the latest and most efficient machines without heavily burdening the balance sheet. This can contribute to higher productivity and lower operating costs in the long term, which is essential in a competitive market.

Another important consideration is flexibility. The agricultural sector experiences seasonal peaks and troughs, and the need for specific machines can vary. Leasing offers the option to deploy machines for a certain period, for example, only during the harvest season, without having to permanently own the machine. The ability to easily switch to a new, more advanced model after the contract ends is also a driving force for many agricultural entrepreneurs.

Frequently asked questions