Last week, Maryland Grain Producers staff member Danielle Bauer attended an energy leasing workshop held by University of Maryland Extension. While the focus was mainly to be on solar, there was also talk about wind energy. Talbot County extension agent Shannon Dill mentioned that a local farmer had been offered up to $15,000 per acre in rent by a wind turbine company.  But, the farmer would only receive about 3% of that $15,000 because wind contracts are based on royalty payments, the amount of energy generated. The workshop focused on both the economics and legal considerations of the energy leases. 

Economically, the main takeaway was that solar is a smaller piece of the pie than wind, but there is less volatility and economic risk with solar. Legally, landowners need to understand how lease terms are going to impact them and their property. The industry average for energy lease duration is 20 to 50 years. Landowners must be comfortable with the amount of time the lease will run, and need to realize that they could be tying up the land for not only their lifetime but their children’s lifetime too. For this reason, it is important to communicate with heirs and watch out for automatic extensions. Additionally, landowners should verify their eligibility with any easements, mortgages, or state/federal programs that are associated with their land. All in all, landowners should make sure they are doing their due diligence on both the company and the lease before entering into any agreement. 

The Maryland Farm Bureau held their annual convention December 4-6 in Ocean City. Hot topics of discussion during the convention included solar energy and nutrient trading. Board member Paul Spies attended as the delegate for Maryland Grain Producers and was very active in the nutrient trading conversations. Many other board members were in attendance as well, representing their county delegation. The Maryland Grain Producers had a display in the trade show which featured a “My Maryland Farmers” photo booth. Attendees of the convention were able to stand in front of a green screen, giving them the ability to choose different backgrounds, and have their picture taken holding signs of all the best management practices they use on their farm. Pictured below are Jenny Rhodes, Queen Anne's County Extension Agent, and Eric Spates, Board Member from Montgomery County.  

More from the Delmarva Farmer

America’s Farmers Grow Ag Leaders, sponsored by the Monsanto Fund, partners with farmers to award rural youth $1,500 scholarships to support their studies in ag-related fields after high school. Farmers play a fundamental role in Grow Ag Leaders by promoting the opportunity to local students and endorsing applications. This year, more than a half-million dollars in scholarships are available to high school seniors and college students in rural communities across the country. Grow Ag Leaders scholarships are available in a variety of fields including: farming, agronomy, education, science, technology, business, communications and more. Applications are due by February 1.

Additional Information

New material is being added to the Maryland Grain Producers website all the time! We have recently added the weekly Maryland Grain Bid report, as well as archiving our bi-weekly newsletter. Both can be found under the “news” tab. Head on over and check out all the great resources our website has to offer. And don’t forget to vote for your favorite video from the Flex Fuels contest while you’re there!

www.marylandgrain.net