Machinery Leasing And Custom Services By Cooperatives And Other Dealers

When earnings decline in the face of rising production costs, farmers may find leasing and renting more attractive than owning their equipment. This-study provides information to cooperative machinery dealers and production credit associations on the benefits, drawbacks, and potential of leasing and custom service programs 'J. The farmer' who stands to pay 25 percent of total production outlay in direct machinery costs could save through a nonmembership program, depending on acreage, type of equipment, and time of usage. For example, it would be cheaper to lease than own a 120-horsepower tractor when used no more than 500 hours annually. At less than 250 hours of annual use, it is more economical to lease than own any farm tractor.