Lime cost

Anonymous-0 · Mar 19, 2013

What is customary practice for a landlord who is cash renting land when lime is applied to the crop land. Does landlord pay for all cost or just lime and renter is responsible for spreading cost?

Frankmn · Mar 19, 2013

I would think the tenant would benefit from the lime therefore he would bear the costs. Everything is always negotiable, so whatever you agree to.

Anonymous-0 · Mar 19, 2013

Here the landlord pays for cost of lime and the trucking charge to get the lime to the farm. Then the renter pays for the cost of spreading the material. Thought being the landlord may realize the benefits of lime 4-5 yrs out where the renter may have a shorter lease than that and not get the full benefit of ag lime. This custom would vary from state to state.Many times all this is spelled out in the land lease.

Don L. · Mar 19, 2013

My renter pays all lime costs, as stated in rental contract. I don't get big rent either. So you can see it works both ways.
Don L.

Harold Hubbard · Mar 19, 2013

Landlord pays the cost up front, tenant spreads it, pays the cost back over 4-5 years. That way if the lease is cut short, the tenant hasn't paid for lime he didn't use, but if the lease continues the landlord isn't paying for something that benefits the tenant. Although, if the lease payment is dependent on yield, the landlord does benefit anyway.

showcrop · Mar 19, 2013

The key thing to remember in setting up the arrangement is that as has been said, unlike fertilizer, which is pretty much an annual cost, the benefit of lime is 3-5 years so someone who may nor be there in two years should not have to pay it, or there should be guarantees that he will be there, or will be able to recoup his investment if not.

Anonymous-0 · Mar 19, 2013

It is a negotiated issue. Some landlords pay all the cost and get a higher rent and tenant is assured of only one year to rent. Often see a 50/50 split which is what I use. No hauling cost because this tenant provides the trucks. It is assumed the lime is good for five years and if tenant changes before that time, he gets back 1/5 of his $ spent for every year less than five.

aFORDable · Mar 19, 2013

Around my area in cash rent contracts the renter pays for all lime needs acccording to soil test. The land owner is out nothing. Average rent per acre is $125 and growing.

JD Seller · Mar 20, 2013

Around me the tenant pays the entire cost. That cost is then prorated over three years. If he does not get the farm for the full three years he gets paid back prated amount for the cost of the lime/application.

If you are raising 150-200 bushel corn you are not going to get 4-5 years without needing lime.

Lime cost

Anonymous-0

Well-known Member

Frankmn

Member

Anonymous-0

Well-known Member

Don L.

Well-known Member

Harold Hubbard

Member

showcrop

Well-known Member

Anonymous-0

Well-known Member

aFORDable

Member

JD Seller

Well-known Member

Similar threads