Higher commodity prices are influencing how farmers use various leasing programs.

Compeer Financial senior leasing specialist Anjie Erbsen tells Brownfield when producers are in a low-income situation, a lease fits well because it allows them to update equipment without a large cash outlay.

“But as we move into commodity prices in a higher range, farmers start to make different types of decisions. Maybe we’re not replacing things just due to need, but we’re doing some normal upgrades, expansions in our buildings, facilities, and our grain systems.”

She says those decisions are typically based off cash-flow and tax management.

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