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Landowners Decide Between Agriculture and Clean Energy Leasing

America's coasts are jam packed with metropolitan populations, but the Midwest consists of plains and rolling hills as far as the eye can see.

Those plains and hills make great ground for clean energy projects like wind and solar panel farms. Much of this prime land is owned by America's backbone: farmers and ranchers.

As clean energy projects make their way across the plains, rural landowners are facing decisions on whether or not to rent their land out for a clean energy project, or to continue to utilize the land for agriculture. For many, the decision comes down to choosing the option that is most profitable. Leasing land for clean energy projects can be a win-win: it provides income for the landowner who has little to manage and operate, and it provides America with much needed energy.

But, there is a rub. The leases are not run-of-the-mill agreements: they often include complex payment terms and varying degrees of the amount of money distributed to the landowner, the local community, government, utility, and the initial investors/owner of the project. Requiring an attorney adds to the cost and complexity of leasing valuable land to clean energy projects.

Sure, clean energy is great for the environment, but is it the superior choice? Windmills can have impacts on birds and add metals and plastics to what would have been farm or ranch land. On the other hand, if leasing land for clean energy is the alternative to using the land for agriculture, and spraying pesticides, or for caging livestock (rather than free range), then perhaps from an environmental perspective, leasing the land is more worthwhile.

What does this mean for other energy or infrastructure projects that inherently work toward a safer relationship with the environment? Once again, the environment is second to profitability. Whether it is installing windmills, a transit project from one metro to another that passes through the countryside, or a green farm building, while doing something favorable for the environment is at the heart of the project, what matters first is whether or not that project will reap financial income or significant cost savings for the landowner. Landowners must read the fine print of these lease agreements to clearly understand if they can profit. If landowners find lease agreements more troubling than farming or ranching that land, the nation might see slower clean energy infrastructure development than currently expected having many implications for the green economy and America's dependence on oil.

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