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Equipment sale-leasebacks helping farmers improve cash flow

The business development manager with LSI Equipment Leasing says some farmers are helping their cash flow through equipment sale-leaseback programs.

Reed Hawkins says it’s a way for farmers to access the equity they’ve built up in their equipment.

“A piece of equipment you own that’s maybe depreciated out a little bit, we’ll do an appraisal on it and give you a fair market value.”  He says, “We would let you lease up to 65% of that. We buy the equipment from you and lease it back to you. So, you have a lot of working capital in your pocket and lower upfront costs.”

He tells Brownfield the sluggish ag economy has made sale-leasebacks more attractive.

“After that first payment, you have all that working capital you can invest in something like seed, or inputs, or invest into another piece of equipment.”  He says, “Do whatever you want with it.”

Hawkins says leasing, in general, is becoming more popular in the ag sector as machinery expenses continue to rise.

Brownfield spoke with Hawkins at the 2025 Greater Peoria Farm Show in Peoria, IL.

AUDIO: Reed Hawkins – LSI Equipment Leasing