U.S. farmers are increasingly turning to solar power as a means of stabilizing their incomes amid fluctuating crop prices and growing expenses. With cash receipts for crops like corn, soybeans and other commodities expected to be slightly lower this year, many farmers are seeking alternative revenue streams.
This shift toward solar energy is a significant component of the renewable energy movement in the U.S., with a substantial portion of future solar development projected to occur on agricultural land. The Inflation Reduction Act (IRA/Climate Bill), which offers tax incentives for solar developers, is expected to further accelerate this trend, with the country’s top agricultural states set to receive substantial clean power investments by 2030.
The adoption of solar energy by farmers comes in various forms, including leasing land to developers or installing their own solar panels. This trend is evident in the significant increase in the number of farms with solar installations over the past five years.
However, some farmers express concerns about the potential impact of widespread solar development on agricultural land. They fear valuable farmland will be lost, exacerbating existing challenges faced by the farming community. Despite these concerns, many farmers view solar energy as a valuable asset that complements traditional farming practices, providing a stable source of income and acting as a form of insurance against market volatility.
EDITOR’S TAKE:
Driving across the countryside there is some evidence of farmers/ranchers installing solar on their land. However, I would hesitate to call it widespread at this point in time. According to USDA, the trend is growing and farmers/ranchers can in fact earn extra income by renting land for solar installations. In other instances, they simply install units to reduce operating costs on their farm/ranch. In either case, it can help boost their bottom line. And we all recognize that improving farm/ranch profitability will likely lead to spending at least a portion on things like tractors, combines and even trucks. Be sure to include farmers/ranchers at or near the top of your customer prospect list. Collectively, they purchase approximately a million trucks every year.
