Farmers are well aware that the business is much about managing cash flow and cost of production.
Natalee Pollard, Account Manager at National Leasing says many producers are now looking at different strategies to prevent expensive farm equipment from becoming a burden.
"We do what's called sale-leaseback. So if a producer does a preliminary tax review today, their accountant might tell them their in a position to pay tax," says the Account Manager.
"Maybe they wrote a cheque for equipment they shouldn't have. They can actually sell it back to us and we'll lease it back to them before the end of the year as a strategy to work with their accountant to get that righted."
Pollard says when she joined the Tillsonburg company 14 years ago, people were hesitant at the idea of leasing, but now that margins are tight many tax advisors are now coming to her with questions.
She feels farmers should look at all the options to make the best decision for them both immediately and over the next five years.
