News Energy
Americans see more in solar parks than CO2
American farmers are more interested in solar panels than in selling CO2 allowances. About 2,6% of the farmers surveyed have an agreement for solar panels, while 1% participate in the newly established CO2 rights system
This is shown by the so-called Ag Economy Barometer of Purdue University in West Lafayette, Indiana. The compensation for storing CO2 in agricultural land is too low for many farmers. Amounts mentioned are a maximum of $20 per acre (approximately €42 per hectare). In many cases, farmers have to adapt their current working methods for this. A small drop in the yield of important crops such as maize and soya causes the profit of CO2 rights to evaporate. Moreover, many entrepreneurs are hesitant to commit themselves for a longer period of time.
Solar park versus crop
The amounts paid for renting land for solar panels are more attractive. Of the survey participants, 32% can rent the land for up to $500 per acre (approximately $1.050 per hectare). 27% even received an offer of $1.000 per acre (about $2.100 per acre) or more. The fees for solar parks are in many cases above the expected balance of the important arable crops.
In the Netherlands the situation is somewhat comparable to the US, only here there are hardly any commercial parties that offer CO2 rights. One of the major obstacles to a large-scale introduction is the earning model for the farmer† And just like in the US, solar park developers offer rents that can compete with the balances of many arable crops. Prices are significantly higher in the Netherlands, varying from approximately €5.000 to €7.500 per hectare.
Jurphaas Lugtenburg
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