The Purdue University Ag Economy Barometer indicates farmers are being offered more than $1,000 per by solar companies for leasing. This could have a side effect of driving up cash rental rates.

Of the 400 surveyed farmers, 19% have actively engaged in discussions with companies about leasing farmland for solar installation. Of these respondents, 58% were offered over $1,000 per acre, 30% were offered from $1,000 to $1,250 per acre and 28% were offered more than $1,200 per acre. This could have long-term implications for long-term land values.

Michael Langemeier, an agricultural economist with Purdue University, predicts that high leasing rates for solar will spill over to other cash rents. With a price tag of more than $1,000 per acre, farmers looking at commodity prices below their cost of production may be tempted.

Read more about solar leasing rates driving farm values here.