Leasing has been the hot topic in the ag equipment market in recent months. Some dealers have expressed concerns about the potential impact on used equipment values down the road when equipment comes off lease.

A Deere & Co. spokesperson addressed the subject during the conference call with analysts on Nov. 25. As of Oct. 31, 2015, operating leases made up 13% of Deere’s lending portfolio, which is up two points vs. a year earlier. In terms of dollars, the value of operating leases was about $4.4 billion in 2014 vs. nearly $5 billion for the same period in 2015.

“JD Financial has not been encouraging customers to utilize leases in general or short-term leases specifically through pricing or residual values,” said the spokesperson.

“Leasing, however, is becoming more attractive to many of our customers. That’s because of an uncertain business environment, coupled with the lack of confidence and clarity in tax incentives.”