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August 9, 2024

Is Renewable Energy Good for U.S. Agriculture?

According to the latest ag census, the number of U.S. farms integrating renewable energy systems on their operation increased 15 percent from 2017 to 2022. Solar energy, specifically, was the biggest contributor to this jump.  

Bar chart showing the number of farms in U.S. agriculture adopting renewable energy systems in 2022 compared to 2017. Notable changes: solar panels +30%, small hydro systems +50%, geothermal -6%. Data by USDA.

When it comes to solar energy, California is leading the way, with more than double the output of any other state. Texas comes in second, followed by Florida, North Carolina, and Arizona.  

The Future of Renewable Energy in Agriculture

Renewable energy seems to be an inevitable part of agriculture’s future, but there’s debate among the community on if that’s a good thing. 

Risk

As this trend gains momentum, critics are concerned about how it could affect the use of highly productive farmland and if measures should be made to prevent significant loss of arable land. In fact, according to American Farmland Trust data, as much as 83 percent of new solar projects are installed on agricultural land, with nearly half placed on what the USDA classifies as highly productive farmland.  

Chart illustrating the conversion of 2.5 million acres to renewable energy use: Cropland 1,075,000; Pastureland 358,500; Rangeland 652,000; Woodland 70,500; Forestland 340,900; Other 95,300—transforming the face of U.S. agriculture.

Reward

On the other hand, renewable energy producing systems, like solar and wind turbines, provide an opportunity for landowners to generate additional income from their land that isn’t dependent on the historically volatile commodity market.  

With the proliferation of land-intensive renewable energy sources like wind and solar power, the competition for land will become even more pronounced and will likely support appreciation of land values in the years ahead.  

Bottom Line: Not all renewable energy options are equally efficient in land utilization. When it comes to the renewable energy discussion, it’s imperative to prioritize land use efficiency and safeguard the bedrock of our nation’s farmland and food security. 

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