Completed Project Report


Grid Scale Solar Energy Development in the Mid-Atlantic Region – Leasing Impacts to Ongoing Agricultural Production

  • Award Amount: $48,550
  • Regional Center: Northeast Extension Risk Management Education Center
  • Grant Program: 2021 Education Projects
  • Project Director: jon laughner
  • Email: jbl14@psu.edu
  • Organization: The Pennsylvania State University

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Project Overview

Shale energy leasing in Pennsylvania and nearby states impacted land used for agriculture in a limited fashion, as most of the follow-up development occurred below ground. Conversely, grid scale solar leasing, which is increasingly occurring throughout the mid-Atlantic region, has the potential to convert significant amounts of surface lands into energy development. Officials estimate that over 80,000 acres in Pennsylvania alone will be involved. Farmers on flatter land in proximity to electrical substations are the prime focus of leasing agents and are being offered substantial payments to transition their land to energy production. During the time period of the grant, the Covid-19 pandemic forced us to modify our original project proposal and work plan. In partnership with the West Branch Crop Management Association, and following a Penn State Extension series of associated leasing webinars, PSU Extension investigators interviewed 8 landowners in central Pennsylvania, which were or had considered this transition, and wrote a case study on each.. An in-depth review of leasing documents, financial, and residual agricultural production outcomes were assessed, looking at solar leasing as a multi-generational risk management hedge allowing for sustaining the farming enterprise over the expected 25-year life of these contracts. Lease document recommendations and this data were made available in a collective form for other farms/landowners attempting to understand the implications of this risk management tool.

Number of Participants: 240

Outcomes

Project Steps

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EDUCATIONAL MATERIALS

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DELIVERY AREA

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