Sanilac Co. Michigan | Orfarmer - 1/5/2019 20:24
Thanks for the above replies.
Does your banker recognize long term investments such as lime, build rates of fertilizer, or tile on long term rented ground?
For instance, if you spend $100/ac on lime last year and expect a 3 year payback, do they count $33 as a current asset and $33 as intermediate or is the whole $100 up in smoke as crop expense like herbicide, N fertilizer, etc?
Well, a lot of that would depend on the legal language included in the rental agreement. For instance, the proration of tile expense should there be a change in ownership prior to the end of the lease.
Again, it's going to depend on the specific language in the lease. |