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Solar farm lease
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HeadAcres
Posted 5/22/2022 13:36 (#9670874 - in reply to #9665157)
Subject: RE: Solar farm lease


WC Wisconsin

barnhome86 - 5/18/2022 09:40 $900-$1000/acre here in ECIL. Don’t walk away…run. Corn is $8, land is $20k….yeah let’s cover up our nations most productive land with panels for the next 25 years. Absolutely absurd. I was approached about adding to the 1,600 acre solar farm near me and told them absolutely not. No one knows what the long term deal or effects on the land that these projects bring. They promise to a have a removal plan after 25 years…..I question that. I wonder what the local landowners around here think after signing their life away for a measly $900/acre for the next 25 years? I netted over $900/acre last year on some of my crops alone. Land prices have increased by 50% since this local solar farm had began construction 18 months ago. You have to ask yourself what a deal like this would look like today, if a lease like this had started 25 years ago. An absolute joke! They pay a 2% inflation increase every year. Inflation just in 2021 was 7 1/2%. So they are already behind by 3-4 years. I can’t imagine what inflation is this year. I’m a proponent of solar energy, just not for permanently covering up our food source in the heartland of our nation. I love the land and love to farm. I’m trying to preserve it for my children and grandchildren, so they too can farm.


Sound like your reply is coming mostly from an emotional angle, nothing wrong with that. You mention the importance of covering up the nations "food source",  this mean you also dislike ethanol for fuel?

I'm guessing you haven't been involved in a project or even seen a lease agreement.  The decomission is governed by language in the contract.  Usually there is an escrow or some type of bonding taken out at the start and held by an independent party.

Tell me honestly that you thing grain profits will stay at this level for the next 25 years.  Please.

I'd really like to see where you netted $900 an acre after paying all costs including your own labor and an opportunity cost of what you could have earned with the time spend on your crops.  Your neighbors just rented their land for $900 an acre and can go farm more land somewhere else.  Very simple concept.

The inflation from 2021 has blown up a lot of long term investments for a lot of people.  The solar contracts I've seen definitely suffer under 8% inflation, just like a lot of things. 

Its perfectly fine to have an opinion to dislike solar or ethanol or GMO crops. Just don't confuse opinion with facts. 

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