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WHAT ARE PEOPLE DOING ABOUT SHARING COST OF LIME BETWEEN LANDLORD AND CASH RENTER RENTER RAISES CORN

 
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3 Replies
Senior Advisor

Re: WHAT ARE PEOPLE DOING ABOUT SHARING COST OF LIME BETWEEN LANDLORD AND CASH RENTER RENTER RAISES

It's difficult to see any benefit to the landlowner if he has no interest in the crop. On share rented ground I split the cost with the landowner with it prorated over  5 years should I not retain the lease.

 

I assume you could invest in the lime if you have along term lease or a guarantee that future tenants would reimburse you for the unused portion of the lime. Assuming a five year life of the lime, the new tenant would assume responsibiity for the unused portion.

 

In a cash rent lease, the investment in lime would be a capital investment for the landlord  just like drainage tile and he would not have the ability to deduct the investment.

 

 

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Senior Contributor

Re: WHAT ARE PEOPLE DOING ABOUT SHARING COST OF LIME BETWEEN LANDLORD AND CASH RENTER RENTER RAISES

Cash rent.  I split lime and spreading cost 50/50 with tenant and he hauls it free from the quarry.

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Senior Advisor

Sharing lime costs

On the ground I cash rent, I pay all the lime.  It's family land and I'm comfortable I'll have it long enough to repay the liming investment.

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