Agricultural leasing tends to involve more of which type of assets?

• A. Fixed assets
• B. Intangible assets
• C. Inventory
• D. Cash equivalents

Answer: (A)

Agricultural leasing centers on long-lived, tangible property that supports ongoing production. These are fixed assets. In farming, leases typically cover land, buildings (like barns and storage facilities), and durable equipment (tractors, combines, irrigation systems) that are used for many years. These assets are capital-intensive and have a long useful life, which is why they fall under fixed assets. Intangible assets such as patents or goodwill aren’t the usual focus in farm leases, since farming operations rely on physical property rather than IP. Inventory refers to items held for sale or use in production and is typically managed within operations, not leased for long periods. Cash equivalents are short-term, liquid investments and don’t describe the asset type being leased.