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Lease Alternatives

Our farm manager negotiates the lease terms for our clients, building a lease around our clients specific farm and priorities. Leases include custom farming, crop share, custom/crop share, bushel lease and cash rent. 

Custom Farming

Custom farming can provide the highest and best return on investment and maximizes control over the land. The land owner pays all crop inputs and custom-hired machinery costs and receives 100% of the crop and government payments. This alternative requires intensive on-site management and knowledge of farming practices provided by CFNB farm managers.

Crop Share Lease 

Under this arrangement the land owner pays a share of the input costs and receives a share of the crop. Typically, the land owner shares in 50% of the cost of the seed, fertilizer, and chemicals, and then receives 50% of the crop and 50% of the government payments. With changing farming methods and increasing land values, this lease may not be as competitive as it once was. To address this issue, many leases are now being tailored to each farm situation, and new percentages, such as 60% land owner - 40% operator, are becoming common. A more common alternative is to adjust the percentage of input costs paid by the land owner.

Custom/Crop Share

The land owner receives 75% to 85% of the crop depending on the yield potential of the farm and pays 100% of the big 3 crop expenses - seed, fertilizer, and chemical. The land owner does not pay for machine hire. The farm operator receives 15% to 25% of the crop for their contribution of equipment and labor. The government payments are split by the same percentage.

Bushel Lease 

This lease specifies a set number of bushels of a particular commodity to be delivered to a specified elevator by a certain date without cost to the land owner. The number of bushels is determined by negotiation, but in most cases is approximately 1/3 of normal production. No government payments are paid to the land owner with a bushel lease.

Cash Rent

Cash rent leases provide a consistent and predictable income. The only expenses paid by the land owner are real estate taxes, farm liability and property insurance, land and building improvements, and repairs. Finding a tenant who is financially sound and uses good land stewardship practices are some of the considerations when cash renting a farm. No government payments are paid to the land owner with a cash rent lease.


Leasing through Citizens First National Bank comes with real advantages. We know you, and we know your business. We have an established, trusted relationship, and we understand your objectives. Unlike traditional leasing companies, we never charge termination or prepayment penalties should you need flexibility during the term of your lease. Coordinating all your banking and equipment financing activity with one bank is convenient, saving you time. Talk with a commercial lender at Citizens First National Bank to find out how we can meet your leasing needs.

Leasing Options
• 100% financing available - no down payment required
• New or used equipment
• Variable payment for seasonal customers
• Fixed rate for the lease term
• Most leases can be structured to meet tax objectives

Accordion Feature
With Citizens First National Bank: Commercial businesses and ag producers have an accordion feature in each lease allowing them to increase or decrease their payment during the lease term depending on need for tax shelter.

Commonly Leased Equipment
• Agriculture
• Manufacturing
• Restaurant & Hospitality
• Commercial Vehicles
• Medical & Laboratory
• Construction
• Municipal & Schools
Apply for a standard equipment lease application here

For more information, check out this lease document


A growing number of municipalities and school districts use leasing to acquire assets of all types and classifications. Leasing is easy, avoids the costs associated with referendums or bonding, and only the annual payments are included in annual budgets. Essential equipment is acquired today without the costly delays due to capital appropriations.

At Citizens First National Bank, we are ready to serve any leasing needs you have. With effective and
competitive tax-exempt rates, we have a clear economic and community interest in making sure your transaction is properly structured and best serves our community. Rest assured The Citizens First National Bank has the resources and expertise to assist you with any complex municipal leasing project. It also provides you with the flexibility you need when budgets and resources change.
Contact The Citizens First National Bank when you need a municipal lease and experience the difference of working with a bank you already know. Working together, it’s all about trust, economic growth, simplicity, and community reinvestment. More to read in this municipal leasing flyer. 

Click here to access a municipal equipment lease application
Lease servicing is provided through our partnership with BB Community Leasing Services, Inc. - Madison, WI

Contact Us for assistance.