by Hannah Dahlman
As another harvest season comes to a close, many of us are reviewing our year-end finances and asking ourselves where to invest, what to upgrade, and how to maximize every dollar before the end of the year. It’s a familiar balancing act — spend wisely today to strengthen the business for tomorrow.
One option drawing attention again this year is the Section 179 tax deduction, which allows qualifying equipment purchases to be written off in the same year they’re bought and placed into service. With recent tax updates, now may be an ideal time to invest in equipment that works hard for your farm throughout the year.
Understanding Section 179
Section 179 lets farmers and business owners deduct the full purchase price of qualifying new or used equipment in the year it’s purchased, rather than depreciating it over several years. For 2025, lawmakers restored 100% bonus depreciation, which means a piece of equipment bought and put into service this year can be fully deducted upfront.
That can make a big difference in managing cash flow and planning ahead. For example, a $50,000 skid steer could be fully deducted in the first year — potentially saving thousands in taxes, depending on your situation.
While Section 179 and bonus depreciation are powerful tools, every farm’s finances are different. Always talk with your financial adviser to determine what makes the most sense for your business goals.
Smaller equipment with big impact
When it comes to utilizing Section 179 savings, compact equipment has become an increasingly popular option. Skid steers, compact track loaders, compact wheel loaders and mini excavators are no longer just for construction sites. They’re practical and efficient tools that fit seamlessly into agricultural operations.
These smaller machines are appreciated for their versatility. They can handle chores like cleaning feedlots, grading driveways, digging trenches or clearing snow. Their smaller footprint makes them ideal for working around barns and tight areas, while their fuel efficiency helps keep costs manageable. Because they can be used year-round, from winter cleanup to spring planting prep, they deliver consistent value throughout the seasons.
Compact equipment can take on a surprising range of jobs across a variety of operations:
- Row crop farms. Ditch cleaning, tile prep, material handling and yard maintenance.
- Livestock operations. Pen cleanout, manure handling, moving feed or setting posts.
- Farmland management. Landscaping, brush removal, gravel spreading or snow removal.
Compact machines also help fill labor gaps or take the pressure off larger tractors and loaders. Many farmers find that a single compact machine can do the work of several tools, all while being easy to transport and maintain.
Plan before you buy
With Section 179 and bonus depreciation restored, 2025 brings a unique opportunity to reinvest in your farm while managing taxable income. Combine those benefits with the versatility of compact equipment, and you’ve got a smart pairing that boosts both productivity and your bottom line.
At Ziegler CAT, we’ve seen how compact machines transform everyday farm work. They’re reliable, adaptable and built for the long haul. Section 179 is a great chance to invest into your farm, and we’re here to help you make confident, informed decisions that best support your goals.
Sit down with your financial adviser to understand how Section 179 applies to your farm and then connect with your local dealer to explore how compact equipment can fit into your workflow and budget.
Smart investments today can pay dividends for years to come — both in the field and on your bottom line.
Dahlman is product manager of BCP at Ziegler CAT.