As technology advances and we focus on renewable energy sources, decisions today will likely play a role in land values down the road. As turbines and solar panels go up across farm acres, analysts say the true impact is still largely unknown.
Paul Neiffer recently talked with David Mooth of People’s Company Capital Markets. He says investors are still trying to grasp how land uses for renewable energy will affect long-term values. In Illinois, some land is leasing at $1,400 an acre for solar panels, but Mooth says it is unclear what the future appreciation rate will be. He says growth in the biofuel industry could also impact land values as more demand comes for corn and soybeans.
A Georgia farm will soon have solar panels covering a portion of its land. Just this week, USDA announced more spending as part of its Rural Partners Network communities. The facility in Blakely, Georgia will get more than $300,000 for a 330 kilowatt solar array. It is expected to save the company $41,000 each year for cold storage of peanuts and other foods.
