Farmers' Willingness to Accept Solar Leasing on CRP or Marginal Lands in the Southern Great Plains: A Discrete Land Use Approach

Eliyasu Y. Osman, Jason S. Bergtold, Jackson Lindamood and Marcellus M. Caldas

No 404750, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: Expanding solar energy production requires access to land; however, relying on productive farmland raises concerns about competing with food production. Identifying alternative sites, such as Conservation Reserve Program (CRP) lands or marginal lands, offers an alternative sustainable solution. Yet, little is known about how much compensation landowners require to lease such lands for small-scale solar installations. This study examines the determinants of farmers' willingness to accept (WTA) payments for solar leases on CRP or marginal lands in the U.S. Southern Great Plains. Using survey data and a heteroskedastic interval regression model, results show a mean WTA of $665 per acre per year, with significant heterogeneity across states and farmer characteristics. Rangeland area and livestock ownership increase WTA, while CRP participation lowers it. Higher pastureland rental rates also significantly reduce WTA, and state fixed effects indicate notably lower WTA in Colorado and New Mexico. Perceptions of renewable technologies and land-use intensity further shape compensation demands. These findings offer guidance for policymakers and solar developers in structuring lease offers tailored to land type, regional context, and market conditions.

Keywords: Resource; /Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 40
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404750

DOI: 10.22004/ag.econ.404750

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