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Senior Contributor
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Registered: ‎04-09-2013
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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?