After land costs, farm machinery is the largest single production expense for many farms. The new publication Purchasing and Leasing Farm Equipment, NCR-615, explains a variety of choices that you face in determining how to obtain farm machinery or related services. It explains the typical plans that financial institutions and equipment manufacturers offer for financing the purchase. It also discusses rental and lease agreements, including explanations of terms, contracts and the leasing process.

One section discusses tax and financial considerations; another compares purchasing and leasing advantages and presents a plan for comparing financing plans. The final section of the 10-page booklet offers a detailed example comparing a lease contract and a loan/purchase agreement.

Raymond Massey, University of Missouri, and William Edwards, Iowa State University, authored the brochure, published by MidWest Plan Service.

Purchasing and Leasing Farm Equipment, NCR-615, costs $4 per copy, plus postage. To order this or other MWPS publications, call (800) 562-3618; e-mail mwps@iastate.edu, or visit the catalog section of the MWPS Web site at www.mwpshq.org. Visa and MasterCard are accepted; make checks payable to MWPS. A description of other MWPS publications also is available on the MWPS Web site.