Signing a contract to put wind turbines on your property can bring in some significant money. However, there are things to keep in mind as a landowner before picking up that pen.
“That lease that you are agreeing to with that wind tower company is really going to set the structure for the terms of that contract,: the length of time, the payment schedule, if there’s damages, and the access points. There are a lot of things that need to be negotiated. Educating yourself, doing your due diligence as a landowner to familiarize yourself. Keeping your farm operator in the loop as well is going to be very important as you start thinking about entering into these contracts. We’ve certainly seen a flurry of them here in the Midwest. It’s very important to understand how that wind tower and that lease is going to affect your land value and your land asset for years to come,” said Spencer Smith.
Smith says he has seen contracts pay out anywhere from $2,000-$5,000 per megawatt per tower, with a typical lease running upwards of 30 years.
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