DW and I have been negotiating with a wind farm company to install wind turbines on some land we own. We've done all the necessary due diligence with professional help and we understand the upsides and the downsides.
We've also worked out the numbers, which are favorable. Basically, we would net a low six-figure payment annually for the life of the lease (with vendor option to renew one more term), with periodic fixed % payment "escalators". We would also net an one-time low six-figure sum for granting underground powerline easement. Impact to current farming operation (rented out) would be minimal, so we would continue to receive rental income from farming.
So the upside is essentially risk-free income for a fixed number of years. Downside is we would tie up our land for the life of the lease. Also, many of our neighboring owners who live on proposed site are against it, citing potentially adverse health effects and impact to their quality of life. While as absentee owners, we won't be impacted by such concerns, we also want to be good neighbors. Lease payments are nice, but they won't move our financial needle, so we would be fine not going through with the project. As there's currently no majority consensus among all the landowners of the proposed site, we're kind of on the fence and undecided as to how best to proceed.
I am interested in hearing from folks on this forum who have done/are doing wind farming on their land. Are your experiences positive or negative? Any downsides or gotchas? How do your neighbors feel about it and are there strong community opposition or support?
Thanks!
We've also worked out the numbers, which are favorable. Basically, we would net a low six-figure payment annually for the life of the lease (with vendor option to renew one more term), with periodic fixed % payment "escalators". We would also net an one-time low six-figure sum for granting underground powerline easement. Impact to current farming operation (rented out) would be minimal, so we would continue to receive rental income from farming.
So the upside is essentially risk-free income for a fixed number of years. Downside is we would tie up our land for the life of the lease. Also, many of our neighboring owners who live on proposed site are against it, citing potentially adverse health effects and impact to their quality of life. While as absentee owners, we won't be impacted by such concerns, we also want to be good neighbors. Lease payments are nice, but they won't move our financial needle, so we would be fine not going through with the project. As there's currently no majority consensus among all the landowners of the proposed site, we're kind of on the fence and undecided as to how best to proceed.
I am interested in hearing from folks on this forum who have done/are doing wind farming on their land. Are your experiences positive or negative? Any downsides or gotchas? How do your neighbors feel about it and are there strong community opposition or support?
Thanks!
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