Over Half of Large U.S. Farmers Offered $1,000+/acre for Solar Leases

A recent Purdue University poll revealed that over half of large U.S. farmers have been offered at least $1,000 an acre to lease their farmland for solar panels instead of crops. This marks a significant increase from previous years. Interest in leasing land for solar energy development remains strong, with one in 10 farmers engaging in discussions about solar leases in the past six months. Payment rates offered varied widely, but more than half of respondents were offered $1,000 an acre or more. The conversion of farmland to solar power has, however, stirred controversy in rural America, but utility companies like Dominion Energy are actively seeking land for solar projects, offering long-term leases and specific land requirements. Compared to carbon contracts, solar leases are more lucrative for farmers, with solar capacity installations reaching a record high of 33 gigawatts last year. The Purdue survey targets large-scale farmers with production worth at least $500,000 annually.

EDITOR’S TAKE:

USDA Secretary, Tom Vilsack, was recently quoted as saying solar should be put on the less productive land. It is not clear from this article whether the leases being discussed meet that standard or are aimed at very productive farmland. Still, no matter the situation, earning $1,000/acre for some farm/ranch operations can be very tempting. Depending on how much land they are willing to commit, solar projects could be a very significant source of additional income. That additional income can be the motivation to purchase that new truck or SUV. Be sure to put your inventory on AgTruckTrader.com®.