Senior Contributor
Posts: 433
Registered: ‎04-09-2013

Another Farm Tiling/Rental Question

Okay Farm Bubbas & Babes,


Here is my stupid non-farm amateur question of the day.


In round numbers, assume 100 acres of prime NE Iowa farmland renting at $250/acre on a year to year lease. The long term, but aging (69 years old) renter has recently asked, and the owner has tentatively agreed to tile 10 acres of this property for a total cost of $5000.00 ($500/acre) to the owner.


The owner, however, would like to eventually recover his capital improvements investment. 


Question: What, if anything, seems like an equitable way for the owner to recover the $5000 tiling costs? Any thoughts on this subject?