Solar energy is gaining traction across the country, and Farm Journal says it’s surprising how much solar companies pay farmers to lease their ground.
A survey of farmers shows the majority are being offered more than $1,000 per acre by companies for solar leasing, and that possibly could drive up the price of future cash rental rates.
The Purdue University Ag Economy Barometer recently asked how many farmers had engaged with companies about leasing land for solar installation.
“It was 19% who said they’ve had discussions, which is a big percentage of respondents who’ve had those conversations,” says Purdue economist Michael Langemeier.
“That doesn’t mean they’ve signed up, but they’ve actually been approached about it.”
The bigger surprise may be the rates companies offered farmers, including 58% who say the rates were over $1,000 per acre.
30% say they were offered between $1,000 to $1,250 an acre.
