Leasing as an Alternative Method of Financing for Agricultural Cooperatives

Glenn D. Pederson and Eric E. Gill

No 279807, Research Reports from United States Department of Agriculture, Rural Development

Abstract: Economic incentives for agricultural cooperatives to lease capital assets such as structures, machinery, equipment, and other depreciable items are explored and illustrated. Selected aspects of lease contracts are reviewed. The lease or purchase problem is analyzed using capital budgeting (discounted cash flow) and wholefirm financial simulation methods. Results for a case farmer cooperative situation are compared under pre- and post-1986 Tax Reform Act rules and various interest rate and lease rate conditions. The analyses suggest that the attractiveness of facility leasing for cooperatives has declined in the post-1986 period. However, leasing will likely continue to be used selectively by farmer cooperatives.

Keywords: Agricultural and Food Policy; Agricultural Finance (search for similar items in EconPapers)
Pages: 64
Date: 1990-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/279807/files/rr83.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:urdbrr:279807

DOI: 10.22004/ag.econ.279807

Access Statistics for this paper

More papers in Research Reports from United States Department of Agriculture, Rural Development Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().