There's been a recent uptick in farmers/landowners asking about these contracts:
• Solar panel farms
• Carbon contracts
• Wind energy farms
• Data center leases
While the $ might be attractive, the devil is in the details.
Each type of contract has unique issues, but here's some general risks to consider when approached:
→ Long term commitments
These contracts often span decades, potentially limiting future land use, succession planning, or adaptation to new technologies.
→ Assignment of rights
Many contracts allow unlimited assignment which means future companies aren't the ones you made the deal with.
→ Environmental compliance
The installation may lead to environmental concerns bumping up against federal or state regulations.
→ Impact on property value & marketability
This could negatively affect future sales or even the ability to get loans against the land.
→ Removal & restoration
Who is responsible and able to remove installations and restore the land at contract's end?
→ Maintenance
Is the company obligated to keep the structures in good repair and how can you hold them to it?
→ Interference with ag operations
Equipment & structures may hinder farming activities and reduce usable land area.
→ Tax implications
Changes in land use can affect property taxes and eligibility for ag tax benefits.
→ Liability for accidents or damages
Added infrastructure and workers increases the risk of the landowner potentially being implicated if people or property are harmed.
→ Energy production restrictions
Contracts may restrict the landowner's ability to develop or benefit from their own renewable energy projects.
→ Data ownership & privacy
Who owns and can access data generated on the land?
→ Stacking/multiple use restrictions
Some contracts prohibit engaging in other revenue generating activities on the same land.
→ Bankruptcy of company
What is the remedy if the company goes bankrupt? Or the third or fourth assigned company (see above risk)
→ Impact on neighbors
Large projects can strain relationships with neighbors due to landscape change, noise, and increased traffic.
This isn't an exhaustive list.
But, they're some issues of concern when wading through the 20+ page boilerplate agreements the companies are providing.
So, before signing on the dotted line... please have your attorney review the contract and advocate for you.
See more and more charts like this, implying that #corn will rally from here. A good chart to have at hand, but as we know well (ie thanks to a permanently beaten commodity that starts with "w" and ends with "heat") huge funds' shorts could easily get even bigger...while the market could wait for a short-covering rally for months....
Personally, I think that there is a good chance that #corn has bottomed out / close to that but the funds' short is just part of the equation
#oatt #sizovreport #wheat #tothemoon
Thanks for the chart @RichNelsonMkts
One of the best slides of the ICM conference. Soil from snirt was collected and contained SCN when soybeans were grown in it. No wonder SCN is everywhere.
Recent rains while beneficial, have hardly put a dent into the ongoing drought across NW Wisconsin and NE Minnesota. With little rain expected over the next week, drought conditions will persist and may even worsen in the foreseeable future. #mnwx#wiwx
"Creation of New Soybean Varieties with High Levels of Resistance to White Mold" from Extension at https://t.co/QpjSGewL7b
@W_Webster74 @MN_Soil_Fungi @drsinghak@febina_m@badgercropdoc +more #agtwitter
The cooling off period for the rail unions has been extended to Dec. 4, meaning that a strike would not be expected prior to that date if it were to happen. #oatt
Today’s #corn prices down sharply, we actually closed below the 20-day moving average.
👉This is the first time we have closed below that average since early August.
🔻Todays big down move pushes prices close to the upward trending line. #oatt
Just a reminder why Ethanol is lowering the price of fuel.
The ingredients in gasoline that ethanol replace are aromatics. Not only are they toxic cancerous etc. they are also more expensive.