Higher Farmer Interest in Solar Leases Than Carbon Contracts

Increased revenue potential and no labor requirement are the main reported reasons landowners are choosing solar electricity production leases over carbon sequestration contracts, according to Purdue University. Farmers have reported leasing offers upwards of $1,000/acre annually for solar versus $10-15/ton for a carbon sequestration contract. The possibility of needing to change production practices to meet the carbon sequestration contract terms also has contributed to the preference of solar. This month’s Ag Economy Barometer, found that of the farmers surveyed twice the amount of people (2.6%) had signed solar contracts in comparison to those who had signed agreements for carbon capture (1%). Find out more reasons why farmers are favoring solar contracts.