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Reuters: U.S. Farmers Turning to Equipment Leases Due to Profit Slump

February 24, 2015, 07:04 AM
Filed Under: Agriculture

According to a Reuters report,  U.S. farmers nervous that slumping grain prices will crimp profits are increasingly leasing equipment instead of buying it, creating new risks for manufacturers like Deere & Co that could suffer from declining values for leased machinery.

According to Reuters, farmers, facing weak markets after years of cashing in on soaring crop prices, are readjusting to a new normal in which they scrutinize every expense, particularly high-ticket items like massive shiny tractors and planters.The shift toward leases is the latest ripple effect from the downturn in the farming economy, which the Agriculture Department predicts will cut net farm income by more than 30 percent this year to $73.6 billion, the lowest since 2007.

To read the full Reuters report, click here.

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