Cadiz Inc. recently announced that it has entered into a 20-year lease agreement with Limoneira Company to develop new lemon orchards on the Cadiz property in eastern San Bernardino County, California {Daily Finance, 2013). Under the terms of this agreement, Limoneira can plant up to 1,280 acres of lemons over the next five years at the Cadiz Ranch. Cadiz will also provide Limoneira access to water on the property to irrigate its farmed acreage. In return, Limoneira will pay Cadiz an annual rental payment and water supply payment. The rental payment will include a base rent of $200 per planted acre and a lease payment equal to 20% of net cash flow from the harvested crops for up to $1,200 per acre.
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