American farmers have long diversified their income by leasing land for energy infrastructure, and over the past 15 years, utility-scale wind and solar have become meaningful sources of revenue. RMI analysis finds that revenue from rural solar and wind energy has become significant in some states, and at the national level is approaching the scale of major agricultural commodities.

Revenues from wind and solar are concentrated in a relatively small number of states, many of which are also among the country’s biggest agricultural producers. In 2024, nine states had wind and solar revenue that exceeded $1 billion; combined, they accounted for $23 billion or 63% of the national total. By comparison, cash receipts from cattle and calves, corn, and soybeans exceeded $5 billion in 15 states. Seven of these leading agricultural states were also among the leaders in wind and solar revenue, and four of the remaining eight states (Indiana, Minnesota, Noth Dakota, and South Dakota) had revenues of more than $500 million.

For farmers, wind and solar projects can provide predictable revenue that supports long-term financial resilience. At the same time, wind and solar projects create new revenue streams for their host counties, supporting rural communities. These revenues complement agricultural economies and provide additional income diversity, making them more resilient to economic shocks in one sector. As more energy infrastructure is built, counties that are intentional about land use and that embrace leading practices will be best positioned to capture these benefits.

Solar and wind can work alongside agriculture to support farmer income

New energy infrastructure is likely to be sited primarily on rural and agricultural lands. Of the rural solar and wind projects installed between 2012 and 2020, 70% and more than 90% respectively are located on cropland or pasture. And 90% of projected solar infrastructure through 2050 is estimated to be sited on rural lands.

Research institutions such as Lawrence Berkeley National Laboratory and Columbia’s Sabin Center, which track public views on energy development, find that rural residents are optimistic about economic opportunities from solar and wind. However, they are also concerned about farmland loss, visual impacts on the landscape, and potential effects on property values. As farmers, rural communities, developers, and local governments make decisions about future projects, they can draw on a growing body of research and practical experience.

Solar and wind affect agricultural land differently, and need not directly compete with agricultural practices. Large wind projects mostly leave surrounding farm activity intact. In fact, a US Department of Agriculture study found that between 2012 and 2017, less than 1% of wind sites located on cropland or pasture shifted out of agriculture after installation. Solar arrays have a larger direct footprint, and the same study found that 15% of solar sites shifted away from agricultural use. In response, farmers, developers, and researchers are exploring agrivoltaics practices as one approach to integrating solar development with agricultural activity. While these practices show promise, outcomes vary by site and design. The land use implications of solar development are an important factor for local governments and stakeholders to consider.

A key benefit of solar and wind development is the stable income they can provide to farmers. Income from agricultural production can fluctuate as commodity prices, production levels, and input costs change. Farmers who choose to host energy projects typically receive annual land lease or royalty payments that can help offset that volatility. For some farms, the additional revenue from a solar or wind facility can provide the stability needed to remain in operation during challenging years.

Energy projects can support broader benefits to rural communities

Although farmers and other landowners may be the most visible local beneficiaries of wind and solar projects, meaningful economic gains extend to broader communities. Rural municipalities and counties receive tax payments that help fund road maintenance, schools, and other public infrastructure and services. Energy projects also create construction jobs and long-term local employment opportunities. In addition to tax payments and jobs, some energy projects use community benefits agreements and other negotiated commitments to align projects with local priorities and deliver benefits that meet local needs.

The chart below illustrates the approximate direct economic benefits that a 100 MW wind project can generate for farmers and rural communities over a 25-year operating life. The benefits of a solar project are comparable.

• Land lease payments provide farmers with predictable annual revenue that supplements earnings from agriculture and other land use. Some farmers structure contracts with royalty payments, which are tied to energy production.

• Tax payments from energy projects give town and county governments more capacity to invest in public services. In Howard County, Iowa, three wind projects totaling 244 MW paid $2.7 million in taxes in 2024, equal to 14.5% of the county’s total tax revenue. The scale and visibility of these benefits depend on state and local tax design, revenue-sharing rules, and whether funds translate into improvements residents can clearly see.

• Operations and maintenance wages from jobs that provide steady employment over the lifetime of energy projects keep skilled workers in the community year-round and long after construction is complete.

• Construction wages paid during a project’s build phase bring money into rural communities.

Wind and solar projects are increasingly contributing to economies in rural America. These projects support financial stability and resilience for farmers and contribute to local tax revenue and employment. As development continues in many rural areas, farmers, counties, and other stakeholders that are intentional about land use and structuring community benefits will position themselves well to capture this local economic value.