Agricultural Lime is a compound made up of calcium and is used to reduce the damaging effects of acidic soils. Lime also reduces the toxicity of elements in the soil, such as aluminum, manganese and iron, which can adversely affect plant growth. Lime also adds desirable nutrients, such as calcium. In addition, lime increases bacterial activity, which helps improve soil structure. The two most common types of lime used in agriculture are calcitic lime and dolomitic lime.