Farmland surrounds a homestead in Vermilion County. A recent farmland owners conference in Oglesby provided key tips for owners interested in new opportunities. (Photo by Catrina Rawson
By PHYLLIS COULTER
FarmWeek
Allan Delphi, a LaSalle County farmer and landowner, felt the heat of the sun shining on him when making decisions that would affect him, his children, grandchildren and possibly others who work his land in the future.
“I have had five solar companies approach me. Each one told me what they would do for me. I even had one more today,” he said while attending a recent farmland owners conference in Oglesby.
At the event, sponsored by the University of Illinois Extension at Illinois Valley Community College, he gathered more information. Delphi said he is thankful that the responsibility of making the decision isn’t his alone. He has involved family members, a lawyer and his support team.
Delphi told FarmWeek he’s learned a lot during the process, studying the easements, learning about equipment and construction and details about decommissioning.
“I’m in my 70s. This project will last at least 40 years,” he said of the care he is taking for his three sons and five grandchildren.
The company they have chosen practices agrivoltaics, the dual use of land for solar energy production and agriculture. They will likely graze sheep initially, but more research is being done on short corn varieties and other crops that might be compatible with the solar system, said Delphi, who likes the idea of the contracted land still being used for farming.
During his presentation, Garrett Thalgott, assistant general counsel for Illinois Farm Bureau, emphasized the importance of asking questions and having a good team when considering signing a solar project contract.
Insurance is something to consider. It is important to discuss a solar contract with your insurance company and attorney and see what is covered by the energy company and what changes might need to be made to the farmer’s or landowner’s policy.
Also, be sure to look at the acreage guarantees. It’s important to know if five or 50 acres are guaranteed to be involved in the contract.
In terms of compensation for land rented, it is important for landowners to have an escalation provision, so the rental price keeps up with rising rates of rent over the next 50 years, the IFB attorney told FarmWeek.
Thalgott agreed it is important to be clear on the details of decommissioning when in some cases it won’t happen for as many as 60 years. The energy company might be sold by then and other generations might be farming.
Some landowners may be against putting solar farms on agricultural land, but eminent domain is not available to solar developers. The landowner has the right to choose what is right for his farming operation for the future and how to use his or her property rights, Thalgott told FarmWeek.
Mary Ludwig, an attorney and partner with Johnson & Taylor in Pontiac, compared property rights to a “bundle of sticks.” That bundle includes air, water and mineral rights in the present and future, she told landowners at the conference.
As for solar and wind contracts, Ludwig offered many of the same cautions as the IFB counsel. She said to make sure attorney fees are considered in the contract costs to understand the contract length and provisions of decommissioning.
“About one-third of landowners receive a letter from an energy company,” Elizabeth Strom, an Accredited Farm Manager and vice president of Murray Wise Associates LLC in Champaign told landowners in attendance.
“Before you sign, make sure you fully understand the contract,” Strom said.
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