Commitments and Contingencies Operating Leases The Company has operating leases for agricultural land, packinghouse equipment, and photovoltaic generators. Total lease expense for fiscal years 2018 , 2017 and 2016 was $2,028,000 , $1,878,000 and $2,049,000 , respectively, which is included in agribusiness costs and expenses in the Companys consolidated statements of operations. 20. Commitments and Contingencies (continued) Operating Leases (continued) During fiscal year 2008, the Company entered into a contract with Perpetual Power, LLC (Perpetual) to install a 1,000 KW photovoltaic generator in order to provide electrical power for the Companys lemon packinghouse operations. The facility became operational in October 2008. Farm Credit West provided financing for the generator and upon completion of the construction Perpetual sold the generator to Farm Credit West. The Company then signed a 10 -year operating lease agreement with Farm Credit West. In October 2018, the Company purchased the generator from Farm Credit West for $1,125,000 . Additionally, in fiscal year 2008, the Company entered into a contract with Perpetual to install a second 1,000 KW photovoltaic generator in order to provide electrical power for the Companys farming operations in Ducor, California. Farm Credit West provided the financing for the generator and when construction was completed, Perpetual sold the generator to Farm Credit West. The Company then signed a 10 -year operating lease agreement with Farm Credit West for this facility. In December 2018, the Company purchased the generator from Farm Credit West for $1,275,000 . The generator in Ducor, California became operational in December 2008. Included in prepaid expenses and other current assets in the Companys consolidated balance sheets is $17,000 and $220,000 at October 31, 2018 and 2017 , respectively of deferred rent assets related to the Companys Ducor solar lease as the minimum lease payments exceed the straight-line rent expense during the earlier terms of the lease. In January 2012, the Company entered into a series of operating leases for approximately 1,000 acres of lemon, orange, specialty citrus and other crop orchards in Lindsay, California. Each of the leases is for ten -year terms and provides for four 5 -year renewal options with an aggregate base rent of approximately $500 per acre. The leases also contain profit share arrangements with the landowners as additional rent on each of the properties and a provision for the potential purchase of the properties by the Company in the future. The Company purchased substantially all of the leased acreage in September and December 2015. The Company incurred lease expense of $201,000 , $152,000 and $202,000 in fiscal years 2018 , 2017 and 2016 . On July 1, 2013, the Company and Cadiz, entered into a long-term lease agreement for a minimum of 320 acres, with an option to lease up to an additional 960 acres, located within 9,600 zoned agricultural acres owned by Cadiz in eastern San Bernardino County, California. The initial term of the lease runs for 20 years and the annual base rental will be equal to the sum of $200 per planted acre and 20% of gross revenues from the sale of harvested lemons (less operating expenses) and will not exceed $1,200 per acre per year. On February 5, 2015, the Company entered into a Modification of Lease Agreement (the Amendment) with Cadiz. The Amendment, among other things, increased by 200 acres the amount of property leased by the Company under the lease agreement dated July 1, 2013. In connection with the Amendment, the Company paid a total of $1,212,000 to acquire existing lemon trees and irrigations systems from Cadiz and a Cadiz tenant. In February 2016, Cadiz assigned this lease to Fenner Valley Farms, LLC (Fenner), a subsidiary of Water Asset Management, LLC (WAM). An entity affiliated with WAM is the holder of 9,300 shares of Limoneira Company Series B-2 convertible preferred stock. The Company incurred lease expenses of $129,000 , $123,000 and $92,000 in fiscal years 2018 , 2017 and 2016 . Payments due to Fenner were $100,000 and $61,000 at October 31, 2018 and 2017 , respectively. Minimum future lease payments are as follows (in thousands): 2019 $ 522 2020 495 2021 496 2022 438 2023 156 Thereafter 2,092 $ 4,199 Letters of Credit The Company utilizes standby letters of credit to satisfy workers compensation insurance security deposit requirements. At October 31, 2018 , there was one outstanding letter of credit for $85,000 . 20. Commitments and Contingencies (continued) Litigation and Legal Proceedings The Company is from time to time involved in various lawsuits and legal proceedings that arise in the ordinary course of business. At this time, the Company is not aware of any pending or threatened litigation against it that it expects will have a material adverse effect on its business, financial condition, liquidity, or operating results. Legal claims are inherently uncertain, however, and it is possible that the Companys business, financial condition, liquidity and/or operating results could be adversely affected in the future by legal proceedings.