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Farmers increasingly lease fertile cropland for solar to shore up income

The USDA projects 2026 net farm income will fall to about $48 billion, 24% below 2022 record highs, pushing some producers toward solar leasing.

Reported · Written up by our desk · Industry

LandThink reports that an increasing number of farmers are exploring solar energy development by leasing private, productive farmland to solar developers, with the outlet citing an informal audience poll where 53% of respondents backed allowing landowners to decide how to use their land.

The article says the shift is partly driven by financial strain from volatile crop prices and rising expenses, including production costs that have averaged about 111% of farm income over the past five years, leaving many producers spending more than they earn just to continue operating.

LandThink highlights the USDA forecast that net farm income will slip lower in 2026 and remain roughly $48 billion, 24% below the record highs reached in 2022. It also notes that corn, soybean, and wheat growers have lost an average of about $300 per acre over the past three years, while cotton producers have averaged roughly $1,000 per acre in losses over the same period.

The outlet adds that solar leasing can be an alternative to selling farmland to developers, and points to USDA census data showing that more than 116,000 U.S. farm operations have solar panels installed and about 1.25 million acres have been converted for solar use. LandThink also says prime farmland is attractive for solar installations because it is often open, dry, and relatively flat, with generally lower conversion construction costs than other ground types.

Latest closeWheat $658.00 ▼3.0%|Corn $473.25 ▲1.9%

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