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May 10, 2024
by Tyne Morgan, Farm Journal The push to add solar energy is gaining traction across the U.S., and it's coming with sticker shock on just how much solar companies are willing to pay farmers to lease their ground. A survey of farmers shows the majority of farmers are being offered more than $1,000 per acre by companies for solar leasing, and that could also drive up the price of cash rental rates. The Biden administration has a goal of a net-zero electric grid by 2035, with solar and battery-powered energy as three vehicles to get there. As the administration works to accelerate their "clean energy" plan across the U.S., land is in high demand, especially for future solar projects. Michael Langemeier, an agricultural economist with Purdue University, says the Ag Economy Barometer is revealing the sticker shock of solar leasing rates. The survey of 400 agricultural producers, is now asking farmers how many had actively engaged in discussions with any companies about leasing farmland you own for solar installation, and the response was surprising. "It was 19% who said they have engaged in discussions, and so think about that, that's a huge percentage of the survey respondents have actually engaged in someone about leases. That doesn't mean they've signed a thing, but that means that they've actually been approached," says Langemeier. The April survey showed a noticeable uptick in the percentage of farmers who reported having a discussion with a company about it in the last 6 months. In April, 19% of farmers said they've had discussions, up from 12% in March. The bigger surprise may be in the high rates solar companies are offering farmers. *58% say the rates were over $1,000 per acre *30% say the rates they were offered ranged from $1,000 to $1,250 per acre *28% say rates were more than $1,200 per acre. To read the entire report click here. Tweet |
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