Farmers predict renewable energy will have future impact on land values

An ag economist says renewable energy is a driving factor in future farmland values.

Jim Mintert with Purdue’s Center for Commercial Agriculture says in the latest Purdue University/CME Group Ag Economy Barometer, farmers expect energy production to have a larger impact in the next five years.

“In the last two months, we added the category of energy production from solar or wind,” he says. “In April, 8% of the producers in the survey who think farm land values are going to increase pointed to energy production this month, 12%.”

He tells Brownfield the survey indicates there are more farmers having conversations with solar companies.

“In April and again in May 19 and 20% of the people in the survey, one out of five are telling us that they’ve at least engaged in some kind of a discussion talking about the possibility of leasing family and for solar energy production,” he says.

He says there’s likely some spillover impacts from the energy market into farmland values. 

The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy and surveys 400 agricultural producers on economic sentiment each month.

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