Farm4Profit Podcast

The Real ROI of Renewable Energy and Agriculture Coexistence

Episode Summary

We talk about the scary world of large-scale solar and wind projects. Discover how these utility-scale renewable energy ventures get started, what it's like for farmers to lease their land, and how these projects can coexist with agriculture. We'll also explore the pros and cons, ask hard questions, and offer advice for landowners

Episode Notes

How do “Large Scale” Solar and Wind projects get started?

1. What defines a utility-scale renewable energy project and how it works (quick definition of wind/solar projects and how they work)

2. What it’s like for a farmer to lease land to a renewable energy project (speaking with developers, signing a lease, etc)

3. How renewable energy projects can (and should) coexist with agriculture: (i.e. how wind turbines take very little space from farming land so farmers can continue to work the land. Not the same for solar projects, but farmers can grow crops next to solar sites, herd sheep within solar sites, and how the land will be fertile for agriculture once the solar site is decommissioned).

4. Pros and cons of leasing land to a renewable energy project

✅Pros of leasing land to a renewable energy project:

• Steady Income Stream (how much on average can a farmer earn from leasing land to a renewable energy project?)
• Minimal Impact on Land (especially wind)
• Local Economic Benefits (local tax revenue that can go to schools, infrastructure, emergency services, etc)
• Energy Security and Grid Resilience (enhancing national energy security)
• Contribution to Renewable Energy (reducing reliance on imported fossil fuels and increase energy independence)
• Save American family farms (additional income has been a lifesaver and helped keep family farms from being sold to developers and maintain that agricultural profile of a county)

❎Cons of leasing land to a renewable energy project:

• Long-term Commitment (leases typically lasting 20 to 30 years)
• Land Use Restrictions (specifically for solar farms, usable farmland is often taken out of production)
• Need to provide access to company staff ( i.e. tech to service the turbines or panels)
• Potential Environmental Impact (how the installation and decommissioning processes can have environmental impacts)
• Sale of leased land can be complicated (if the land is already generating revenue from the lease then selling is easier. The lease can be transferred as long as it is covered in the lease agreement. Consult a lawyer for that)

5. How generating solar/wind energy is a form of harvesting in itself

6. Things to consider if you’re a farmer considering leasing land to a renewable energy project.

• Discuss potential impacts during construction
• Decommissioning process and responsibilities at the end of 20-30 years (so people remember grandpa/ grandma fondly :)
• Supporting  your local community with many benefits that pay for essential public services for your county

7. Opportunity to answer commonly asked questions/misconceptions of renewable energy projects: 

• Whether renewable energy projects affect property value
• Whether solar panels render land infertile
• Whether wind turbines are loud (in general wind turbines generate about 30- 45 decibels at 300 ft while the limit is 55 decibel. With proper setback in places where wind turbines are built, people are more likely to hear traffic from a distant highway than the turbine itself)
• Do wind turbines kill birds? (yes about 300K in the US but that is nothing compared to cats, buildings, pesticides, and cars that kill millions of birds per year)
• Whether renewable energy projects are funded by taxpayer money or by private investments (private investments. In fact a lot of fossil fuel companies are now making investments in renewable energy because the margins are better than generating power from gas or coal. Additionally like most energy projects clean energy companies make annual payment to the county tax revenues and support  community benefits)
• Whether wind and solar energy are more expensive than coal or gas (see Lazard’s levelized cost of energy 2023 report)
• Supposedly 7-10% of the electricity generated is lost so where does that go?  Ground water? Livestock, family?

8. Advice to farm landowners considering leasing land to a solar or wind project.

*It goes without saying but it’s important for landowners considering leasing land to a clean energy project to consult with relevant legal and financial experts for their unique situation before finalizing any agreements. There are resources like the Center for Rural Opportunity and Power (CROP) that provide good, unbiased information on how to get access to these resources as a landowner. CROP’s mission is to educate audiences about the benefits of energy independence.You can visit their website cropamerica.com or drop them an email contact@cropamerica.com for more info.