As reported in the Ag Economy Barometer, there was a 15-point decrease in April compared to March. This reflects farmers’ growing concerns about financial performance and farmland values. Despite this, interest in using farmland for solar energy production is on the rise, with 19% of farmers having talked to a company about this possibility.
Farmers are less optimistic about the future value of farmland than they were a year ago, with only 8% attributing their belief in an increase in farmland values to energy production on farmland. However, demand for solar leases is increasing, with 58% of farmers receiving lease rate offers exceeding $1,000 per acre – up from 54% in March.
The potential impact of these rising lease rates on farmland values should be carefully considered by farmers looking to invest in energy production on their land. For more detailed information on this topic, you can access the complete report at https://tinyurl.com/ykmj9x5w.