Farmers’ outlooks on the U.S. agriculture economy dropped in April, according to the latest Ag Economy Barometer, which was released this week.
The index fell 15 points, the weakest reading on the barometer since June of 2022. James Mintert, the director of Purdue University’s Center for Commercial Agriculture, said many farmers were concerned about income levels in 2024.
“If you look at it from a longer-term historical perspective, ‘23 was still a reasonably good year,” Mintert said. “Twenty-four is going to be a much, much tougher year for most ag producers, especially crop producers here in the Corn Belt.”
The April survey also asked farmers if they had been approached by solar panel developers about leasing their land. Nineteen percent of those surveyed said they had had discussions with developers in the last six months, up from 12% in March.
Read more: As solar developments continue, land leasers stand to lose the most
Of those who’ve been approached, 58% reported that they were offered $1,000 or more per acre to host solar panels on their property.
“We suspect that most of the higher end of the rates that we're picking up are probably in the Corn Belt,” Mintert said. “Many of them potentially in the eastern part of the Corn Belt but certainly in the Corn Belt, where farmland lease rates are higher to start with.”
Additionally, 28% of those approached said they were offered more than $1,200 per acre.
The high price increase is catching producers’ attentions. Mintert believes the price is demand-driven, meaning farmers are interested in using farmland to host panels.
“When you compare the lease rates being offered relative to returns from growing crops like corn and soybeans, for example, they're already operating (in) an environment that is, at least here in the eastern Corn Belt, several multiples higher than what typical farmland lease rates would be,” he said.
The report noted that the increase in the price that developers are willing to pay farmers to host panels could cause the price of cash rental rates on land to increase.
Read more: Ag producers optimistic about possible interest rate decrease
