Wind Energy Basics for Farmers

Wind energy and agriculture are a natural mix. Windmills, usually used to power wells, have been used for centuries by farmers in America and Europe, and they are a common sight throughout rural America. Today, wind power is becoming even more important. With a growing determination in the United States and around the world to achieve energy independence, fight air pollution and global climate change, and improve local economies, renewable energy has become one of the fastest growing sectors of the national and world economies.

Modern wind turbines can provide an extra source of income for farmers in several ways.

One option is to lease your land to a wind developer. These can be paid either as a set rental fee or by receiving a percentage of gross annual revenue. The U.S. Government Accountability Office reports that farmers who lease their land earn an average of $3,000-15,000 per turbine per year in lease payments, depending on factors such as the size and capacity of turbines, the quality of the wind resource, and the amount of electricity produced. Turbines typically require one half acre to one acre each, but depending on the terms of the lease, you may be able to continue some agricultural activities under or around them.

Another option is to install your own turbines, privately or through a cooperative. Although this typically has higher upfront costs, the return is also higher, and you may be eligible for federal subsidies, tax breaks, or cost-share programs to help offset installation costs.

Privately owned small wind systems can create income for you in one of two main ways. Net metering allows you, as the consumer, to offset the cost of the electricity you buy from your local utility by selling the renewable electricity you generate back to the utility. It generally makes the most sense for smaller, primarily residential, installations. When you produce excess energy, your meter will run backwards. If, at the end of the month, you have produced more energy than you have used, your utility company will pay you for the difference. Currently, 34 states offer some sort of net metering program.

Another option is to sell power directly to utility companies. Electric companies are increasingly buying power from independent producers instead of, or in addition to, producing their own.

Whether you plan to lease your land, start a wind cooperative, or install a private small wind system or wind farm, wind energy will strengthen your local community. The Renewable Northwest Project reports that 7 new wind farms were built in the Northwest between October 2005 and October 2006. In addition to providing 954 megawatts (MW) of new wind power to the region, the farms brought $1.38 billion in new capital investment, between $2 million and $3 million in annual royalty payments to rural landowners, between $5.8 million and $6.8 million each year in local property tax revenues, nearly 1,400 construction jobs during peak construction periods, and roughly 80 new permanent family-wage jobs for operation and maintenance. Texas farmers are also benefitting from wind energy investment in their rural communities, as have farmers from the farmer-owned Minnesota wind cooperative MinWind and other communities across the state.

The US Department of Energy offers free PDF documents entitled Small Wind for Homeowners, Ranchers, and Small Businesses that offers information about evaluating your wind resource, choosing the right turbine for your needs, connecting your system to your local utility grid, and more.

The American Wind Energy Association also offers a number of informative publications pertaining to small wind.

The Union of Concerned Scientists offers a good general overview of the symbiosis of wind power and agriculture.

The National Sustainable Agriculture Information Service hosts a list of resources for farmers and ranchers interested in wind energy.

Windustry offers an extensive collection of information on all aspects of the wind industry, and hosts the Wind Farmer's Network, a forum for landowners interested in small wind.