Valuing Agrivoltaics: Farmer Preferences and Policy Implications for Dual Land Use in the U.S. Midwest

Paul Mwebaze, Madhu Khanna, Fahd Majeed, Bijesh Mishra and Ruiqing Miao

No 404508, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: Utility-scale solar expansion across U.S. croplands is intensifying food–energy land-use conflicts, particularly in the Midwest. Agrivoltaics (AV), the co-location of photovoltaic systems with agricultural production, offers a potential land-use solution, but its scalability depends on farmer adoption. This study examines how financial incentives, operational requirements, and behavioral factors shape AV adoption decisions using a discrete choice experiment with 177 farmers across 12 Midwestern states (708 choice observations). The experiment evaluates attributes that directly affect farm profitability, risk exposure, and management complexity, including lease payments, income variability, land share under panels, and requirements for new equipment or crop switching. We model adoption as a joint discrete–continuous decision, capturing both the likelihood of adoption and the extent of land allocation to AV. Results show that higher lease payments significantly increase both the probability of adoption and land allocation, highlighting the importance of stable and attractive compensation. In contrast, operational complexity, particularly requirements for new equipment, reduces adoption and generates substantial implicit costs in willingness-to-accept (WTA) estimates. Behavioral characteristics also matter: farmers with higher discount rates are less likely to adopt, whereas risk-tolerant farmers are more willing to participate. Latent class analysis further reveals substantial heterogeneity, distinguishing a majority of cautious “moderate adopters” from a smaller group of “high-intensity adopters” that is more responsive to stable income streams and higher lease compensation. Overall, the findings suggest that financially attractive and operationally simple AV contracts will be critical for scaling adoption while preserving agricultural production.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 46
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404508

DOI: 10.22004/ag.econ.404508

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