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How to Finance Your Pole Barn Renovation Project with Compeer Financial

December 18th, 2023 | 11 min. read

Cori Lane

Cori Lane

Cori grew up on her family's small grain and livestock operation in Northwest Indiana. In 2018, she graduated Summa Cum Laude with a Bachelor's degree in Business Administration & Marketing from Marian University Indianapolis. Having shown beef cattle for 12 years at the county, state, and national levels, Cori chose to pursue a career in agriculture. Today, she serves as the Marketing Content Creator on the FBi team. In her free time, Cori enjoys spending time with family and friends, watching sports, listening to live music, and traveling.

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If you’re reading this article, there’s a good chance you own an older post-frame building needing some TLC. Your pole barn is in fair condition, but it’s seen better days. You’ve thought about new post-frame construction but are still on the fence.

Unfortunately, pole barn costs have increased since the start of COVID-19. The lack of building materials amid the “Great Supply Chain Disruption” is to blame for the fluctuation in pole barn prices.

Depending on the scope of your pole barn repair and renovation project, you can give your existing post-frame building a new look for less money.

If you still need assistance, FBi Buildings has teamed up with Compeer Financial to offer capital lease financing options for pole barn repair and renovation projects. 

This innovative partnership allows customers to upgrade their original post-frame building without the burden of high upfront costs.

Let’s delve into the details of this advantageous agreement and learn how it can benefit you!

Pole Barn Financing Options with Compeer Financial

Who is Compeer Financial?

Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agricultural and rural communities. They provide loans, leases, risk management, and other financial services throughout 144 counties in Illinois, Minnesota, and Wisconsin.

Based in the Midwest, Compeer Financial supports the hopes and dreams of rural America. They offer specialized expertise and personalized service to farms of all sizes, crops grown, and livestock raised.

What is a Capital Lease?

A capital (or non-tax) lease is a type of financial agreement where the lessee obtains the use of an asset and agrees to make periodic payments.

Unlike an operating lease, a capital lease is treated as a purchase of the asset. Typically, the lessee assumes ownership of the investment at the end of the lease term. It is characterized by a $1 buyout option.

Capital leases are often used for long-term financing and offer significant advantages such as tax benefits and flexible payment plans.

The following sections discuss the terms and conditions of capital lease financing Compeer Financial provides for pole barn repair and renovation projects.

Pole Barn Repair Quote_FBi Buildings

Capital Lease $1 Buyout Option Details:

Agricultural Pole Barn Reskin_Before 21. Purchase for $1 at the End of the Capital Lease: The $1 buyout option empowers customers to take ownership of their post-frame building at the end of the lease term by acquiring it for a nominal amount.

2. Comprehensive Construction Project Scope: A capital lease agreement covers a wide range of pole barn repairs and renovations, including:

However, it’s important to note that certain exclusions apply, such as excavation (site prep), driveways, landscaping, and digging new wells or septic tanks.

Capital Lease Terms & Conditions:

Agricultural Pole Barn Reskin_After 21. First Lease Payment Due Later: The first lease payment is required upon completion for lease transactions, ensuring a seamless transition from the post-frame construction phase to the leasing arrangement.

2. Flexible Payment Terms: Customers can customize monthly, quarterly, semi-annual, or annual payment terms that align with their cash flow preferences.

3. For Agricultural Use Only: The capital lease financing option is available for agricultural use only, with borrow eligibility determined by Compeer Financial.

4. Subject to Credit Approval: Customers seeking capital lease financing are subject to credit approval and conditions set by Compeer Financial.

Ultimate Guide to Pole Barn Repairs & Renovations Blog

What Are the Advantages of Capital Lease Financing?

Farmer HandshakeAgain, a capital lease agreement through Compeer Financial offers remarkable advantages tailored to meet the financial needs of customers wanting to repair and renovate their existing post-frame building.

1. Tax Benefits: Clients are treated as asset owners for tax purposes. This treatment allows them to leverage tax deductibility determined by their accountant’s recommendation.

2. No Down Payment Required: A notable benefit of capital lease financing is the absence of a down payment. The initial lease payment is due upon the completion of the pole barn renovation project.

3. Collateral Flexibility: Most transactions under the capital lease agreement offer collateral flexibility. This adaptability makes it easier for customers to get their dream post-frame building without spending large amounts of capital.

Why Should You Repair and Renovate Your Existing Pole Barn?

As you read this article, do you still find yourself at the crossroads of deciding between repairing and renovating your existing post-frame building or pulling the trigger on constructing a new pole barn?

Sure, Compeer Financial also offers agricultural loans for new post-frame buildings. You can easily sign a capital lease agreement for this reason. But that original pole barn in the backyard may still be full of life.

Here are two key indicators to know if your current post-frame building is a worthwhile investment or if starting anew is the better option.

1) Pole Barn Structural Integrity

Agricultural Pole Barn Reskin_BeforeFirst, structural integrity refers to a pole barn withstanding anticipated loads without breaking. Any post-frame building must resist vertical and lateral loads regardless of size and geographical location.

Your older pole barn may be salvageable if no structural components are bowing, sagging, or uplifting.

We recommend having a post-frame builder inspect your pole barn for structural damage. Some signs are more evident than others. A trained eye will scan every inch for weak links that may cause post-frame building collapse.

Pole Barn Repair Quote_FBi Buildings

2) Extend the Pole Barn's Useful Life

Agricultural Pole Barn Reskin_AfterSecond, you can extend your pole barn’s useful life if the structural integrity is intact. Your post-frame building may look different from what it did in [insert year built], but simple pole barn repairs and renovations can make it look as good as new.

Moreover, you can repurpose your post-frame building. For example, you can repair and renovate your existing agriculture building by framing a portion for living quarters and adding an interior finish like drywall. You can also install a deck system or build a pole barn addition if more storage space is needed.

Editor’s Note: A post-frame builder with an in-house engineering team will tell you which structural upgrades must be made to extend your pole barn’s lifecycle while being code-compliant.

Get Started on Your Pole Barn Repair and Renovation Project!

Pole Barn Renovation Construction CrewFBi Buildings is committed to delivering exceptional pole barn repair and renovation services, including but not limited to:

Our dedicated team of experts has the knowledge, resources, and workforce to extend any post-frame building’s useful life or reconfigure it for a new purpose. Best of all, it does not matter who built the original structure!

In partnership with Compeer Financial, FBi Buildings is prepared to bring your vision to life. Please call (800) 552-2981 to see if you qualify for this exclusive financing option and take the first steps toward renovating your existing pole barn.

Additional Resources:

The Ultimate Guide to Pole Barn Repairs & Renovations

How Much Does it Cost to Reskin a 30’ x 40’ Pole Barn?

How Much Does it Cost to Reskin a 40’ x 60’ Pole Barn?
How Much Does it Cost to Repair Rotted Pole Barn Columns?

Pole Barn Financing Options with Compeer Financial

Do you have more questions about pole barn financing that aren’t covered in this article? If you need help designing and planning, please contact FBi Buildings at 800.552.2981 or click here to email us. If you’re ready for a price, click here to request a quote, and a member of our Customer Engagement Team will help you determine the next steps.