American farmers are facing a brutal combination of erratic weather, climbing input costs, and margins so thin that one bad season can erase a year’s profit. New RMI research shows wind and solar income rivaling major farm commodities in some states, a development with real implications for cash-strapped farming communities.
Unusually violent temperature swings over the past few months have devastated wheat crops across Kansas, Oklahoma, Texas, Colorado, and Nebraska. Where 40 to 50 bushels per acre was once typical, some fields are now producing fewer than two. USDA assessments classified 44% of the Kansas crop and 49% of Oklahoma’s in the poor to very poor range. The country’s planted wheat area is on course for its smallest footprint since 1919.
Kansas farmer Merrill Nielsen, whose family has worked the same land since 1871, calls this among the toughest years he has seen. Dairy farmer Blake Gendebien in Lisbon, New York, uses 20,000 gallons of diesel a year. Over the past year, the price has nearly doubled, from $2.65 to close to $5.00 per gallon, adding about $50,000 to his annual bill. Most U.S. farms are modest operations with annual revenue below $350,000 and margins that rarely exceed 10%.
Wind and solar brought in more than $23 billion for rural America in 2024, with nine states each clearing $1 billion, according to RMI. Between them, those nine states represented 63% of all clean energy land payments recorded across the country. Most of those states also rank among the country’s biggest agricultural producers, meaning both revenue streams often concentrate in the same communities.
For individual farmers, the main draw is income that doesn’t hinge on the harvest. Contracted payments from energy developers arrive on a fixed schedule regardless of conditions. A USDA study covering 2012 to 2017 found wind installations displaced farming on fewer than 1% of sites. For solar, that figure rose to 15%, though the two activities can often share the same land.
Hosting such a project channels money into county budgets and generates construction work and local jobs. Howard County, Iowa saw three local wind projects deliver $2.7 million in tax revenue in 2024, equal to 14.5% of the county’s entire intake. Studies find that people in farming communities broadly welcome the economic upside, though concerns about losing agricultural land and nearby property values persist.
About 90% of the solar capacity planned by 2050 is set for rural areas, meaning payments to farming communities will only grow. RMI says communities that think carefully about land use and negotiate structured agreements with developers will be in the strongest position to benefit. States like Indiana and North Dakota have already cleared $500 million in wind and solar income.
As the energy mix of the country continues to evolve with companies like Frontieras North America Inc. pioneering novel forms of existing energy sources like coal, income opportunities could spread beyond farming communities to other segments of society.
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