Leasing is a loan in which the lender buys and owns the equipment and then rents it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value, continue leasing, lease new equipment, or return it. Leasing is a loan in which the lender buys and owns the equipment and then rents it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value, continue leasing, lease new equipment, or return it. Very often, a farm’s equipment clearly defines it – the classic image of a tractor or hay baling machine is unmistakably recognizable. The equipment is vast in scope – a dairy farm may have large machines meant for milking hundreds of cows, whereas a farm growing mostly grain will need equipment specialized for that task.

Regardless of the equipment needed, it is all an investment. The better the equipment, the better the farm runs, and the more profitable the operation becomes. So, it’s prudent to get the best farm equipment financing possible. Which is what Prafton Finance can offer!


  1. Read and comply with the manual: Always thoroughly read the manual for each piece of equipment. Your new tractor may function differently than your old one, for example. Then, comply with the instructions and rules.
  2. Follow and keep up with the federal and state laws: These laws are in place to protect both you and the citizens around you, and it’s best to make sure you’re keeping up with changes to avoid fine.
  3. Always keep your slow-moving-emblem clean, visible, and properly mounted: This is an important law. Following it can prevent rear-end collisions while transporting and potentially save a life.
  4. Dress appropriately: An untied shoelace, flowing long hair and stray threads from an old shirt have, in the past, led to horrendous injuries when operating farm equipment. Dress appropriately can mean reducing the risk of such injuries.
  5. Ensure you’re well-rested: Feeling fatigued when operating machinery can be dangerous. Make sure you’re taking breaks from work when you need rest.
  6. Avoid alcohol: Even one drink can affect your ability to operate machinery. Keep alcohol out of the picture until you’re done for the day.
  7. Maintain awareness: Stay focused. Be aware of what you are doing and where you are going.
  8. Adjust equipment accordingly: This means keeping all guards, shields, and access doors in place when operating equipment, and making necessary alterations to equipment to fit operational conditions.
  9. Keep children and animals away from working areas: Farms offer a world of adventure for curious kids. To avoid disastrous accidents, keep your child’s play area separate from your working area.
  10. Read up about planter equipment safety: Although operators should bear in mind similar safety precautions when using planter equipment, it’s good to read about the specifies.


The logic seems obvious: as with any business, purchasing the tools of your trade puts you in the position of owning valuable assets that you can sell in the future. Among other perceived advantages, it also provides you with an asset value that not only looks good on a balance sheet but can be used as collateral against future loans.

While this is all true, leasing equipment offers a variety of advantages that are well worthy of consideration for many independent farmers.

  1. Improved cash flow: Maintaining a steady, comfortable cash flow is a common struggle among many smaller farms. The problem is that crops tend to be erratic, unpredictable commodities, and given that a farm’s cash flow is typically generated from its latest crop, one bad season can place a heavy burden on the entire operation. Agricultural equipment leasing enables farmers to keep more working capital on land. This capital can be then applied to other projects, growing the business in different ways. Plus, leasing utilizes operating capital as opposed to investment capital, and in many instances, payment schedules to the lessor can be arranged to coincide with periods of higher cash flow.
    In terms of low-interest rates, in particular, lease payments are more malleable and better suited to meet the genuine business needs of farm operations than conventional loans.
  2. Lower monthly payments: Prafton Finance is a leader in farm equipment finance with low monthly payments and multiple loans and lease options. Connecting clients to capital for full-line fab acquisitions, project funding, and equipment. In most cases, your payments are going to be less with a lease than a loan. Rather than the take it attitude of many traditional lenders, leases are generally negotiable to a certain extent, allowing you to broker the best deal for yourself as possible. This can help further your annual expenses while improving your monthly cash flow.
  3. Latest technology: Consistent with technology in general, farm equipment also continues to improve and grow more advanced as the years go on, with every indication that the pace of agricultural innovations will only hasten in upgrades the future.
    Agricultural farm equipment leasing gives you the ability to upgrade pretty well any time you want: you simply release your current equipment – a tractor, for instance – to lease a newer, upgraded model. Lease terms are typically short, between two and five years in most cases, so you’ll never fall too far behind the latest innovations no matter how you choose to pay. Not only does this keep business moving right along, but it enables farmers to get hands-on-experience with the most recent advancements in their chosen field.
  4. Minimizing repair cost: Farming is a powerful force, but that doesn’t mean there aren’t obstacles to continue growth, changing global demand and economic conditions have created challenges. Farmers rely upon the full functionality of their equipment daily, it’s critical to the overall success of the business that it constantly be well-maintained, with repairs performed as soon as any given problem arises. This is a particularly relevant advantage to leasing if you cannot repair your machinery. Plus, leasing ensures that the equipment you need is always available and in good condition.
  5. Financing that feels like home: Prafton Finance team is available to assist farmers to accommodate your expansion or renovation needs. Working with local to national brands, our financing options are tailored to fit expansions, equipment upgrades, and more including combine equipment, tractors, cotton bailers, stump grinders, hay bailers, plowing equipment, cotton gin machines and more.
  6. Tax deductions: Equipment that is leased can be written off on annual tax returns under a section. By reducing tax burdens, farmers have more money to be used elsewhere. And while equipment owners can also utilize the section those who can lease equipment stand to gain just as well because they don’t have to pay much on the principle balance.