Investment in machinery remains one of the largest financial decisions for a farm. According to Eurostat, mechanization costs account for between 20% and 30% of total expenditures in commercial farms, and the trend for 2026 points upward, driven by high equipment prices and the cost of capital.

Ownership offers control and predictability, but ties up significant capital. Data from the National Institute of Statistics show that agricultural machinery prices have increased by more than 25% compared to 2019, while depreciation periods frequently extend over 7–10 years. In a volatile market environment, this financial rigidity reduces a farm’s ability to adapt.

Leasing has become an increasingly used alternative. According to data from the National Bank of Romania, leasing-based financing in agriculture expanded in 2024–2025 in response to difficulties in accessing traditional bank credit. The main advantage lies in lowering the initial investment and aligning payments with cash flow.

For 2026, the choice between ownership and leasing is not a technical one, but a financial one. Machinery should be assessed based on its utilization rate and its impact on cash flow, not solely on the purchase price.

(Photo: Freepik)