Planning Your Renewable Project in the Midwest
Many factors influence the success or failure of a renewable energy project. From initial ideation through completion, renewable project developers must consider everything from weather patterns to zoning requirements and landowner engagement.
Lease acquisition is usually one of the first challenges to solve, but doing so can be time-consuming and fairly nuanced. Working with a company like New Era Land Services LLC can simplify the process, especially if you’re planning a renewable project in Indiana (we’re based here), Illinois, Kentucky, Michigan, Ohio, Missouri, Nebraska, Iowa, and other parts of the Midwest.
Here are some important things to think about as you refine your lease acquisition strategy.
Understanding The Midwest’s Strong Agricultural Ties
The Midwest accounts for more than 127 million acres of agricultural land according to the U.S. Department of Agriculture. The vast majority of this land (about 75%) is used for growing corn and soybeans, but other crops like wheat, melons, and pumpkins are also grown here. With so much of the Midwest’s land being used for agriculture, it’s no wonder why renewable project developers routinely find themselves seeking land leases from farmers.
Unfortunately for developers, it’s not as easy as showing up at the farm and asking for a signature. Successfully acquiring land leases from farmers involves a relationship—one that’s built on respect, empathy, and trust.
Cultivating Healthy Relationships with Farmers
Deciding whether or not to lease ground for a renewable project goes far beyond financial considerations. For most farmers, it comes down to:
Time of the Year: Getting a crop in the ground—at exactly the right time—can be incredibly stressful. Too much rain can cause planting delays, or worse, wash out the farmer’s hard work. Harvest time can be stressful, too, especially if there’s too much rain that prevents the farmer from getting into the field. That’s why experienced land management companies try to approach farmers when they’re in the right mindframe to explore opportunities. In our part of the country, that usually means interacting with farmers between November and March. There’s also a window between planting and harvest seasons (i.e., June, July, and August).
Weather: Farmers will occasionally tell us, “Catch me the next time it rains.” That’s difficult to do, however, when the farmer owns thousands of acres across multiple counties. Although it’s raining in one township, the weather could be perfectly clear in another. Having an on-the-ground presence with local knowledge is vital.
Soil Moisture: Dry weather during planting season does not necessarily mean that farmers will be busy in the fields. Farmers pay close attention to the soil moisture, too, and use this as a guide for informing their activities. Understanding local ground conditions is a key factor for ensuring effective outreach to farmers.
Emotional Connections: Ask a farmer about a piece of his land, and he’ll likely have a story to share. Maybe his great-grandfather bought it in the 19th century and handed it down to multiple generations. Or, perhaps the farmer outbid another farmer in a friendly bidding war. Each piece of land has a story, and each story is likely to bring about a series of emotions.
Family Dynamics: Finally, the farm’s succession plan plays a role in the farmer’s willingness to entertain renewable energy projects. The farmer whose children show no interest in continuing the family farm may be more receptive than one whose son is actively engaged in the operations.
Looking for Help with Lease Acquisition in the Midwest?
Connect with New Era Land Services LLC to discuss your renewable energy project and explore our lease acquisition services. We’re headquartered in Indiana and have experience supporting clients’ land management needs in the Midwest and beyond.
Contact us to start a conversation and tell us about your project.
