Financial leasing and operational leasing in Turkey: Agriculture sector case

The purpose of this study is to assess which one among purchasing and leasing methods has lower cost for the investor when a new investment decision is made by a person and company operating in agricultural industry. In this context, options of purchasing, purchasing with bank loan, financial leasing and operating lease have been examined on a sample case in terms of the investor. In order to determine the advantageous choice for the investor, cash flow charts of the investor were created for each situation and assessment was made by using net current value method. As the result of the study, it was determined that leasing costed lower than purchasing. When a comparison is made in terms of leasing methods, it was determined that operating lease would be more advantageous than financial leasing for the investor. Although it was determined as the result of mathematical calculations that operating lease would be more advantageous, it was assessed that mathematical calculation was not the only decision making mechanism and other variables also took important part in decision making process. It was assessed that investors in agriculture industry would find more low-cost funds as the result of increase in applicability of operating lease in our country and this would make a contribution to the development of all industries, especially agriculture.