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Buy, Lease or Hire? When it comes to farm equipment, there is no easy answer. This Management Moment video explores some of the advantages and drawbacks of each. Video highlights: Leasing equipment means lower payments for easier cash flow. Lease payments are also often 100% tax deductible When you buy equipment you can write off the interest costs on a purchase loan and eventually write off the purchase amount too -- just not on a monthly basis like a lease. Hiring a custom operator is the third option. To assess this option, you need to know what your cost per acre is for both ownership and leasing the equipment. Sitting down with your accountant and understanding the implications of each choice for your farm is a good place to start making an informed decision. http://www.fcc.ca/multimedia