Farmland Partners, a real estate investment trust managing farm properties, announced that a new energy tenant intends to construct a new solar power project in Clark County, Illinois that will be spread across six Farmland Partners properties, spanning 1,542 acres.
The power plant construction is expected to start by the end of August 2022. The development is expected to increase rental income for Farmland Partners as the tenant will pay about 50% higher rent than the current farm rents after construction completes.
Farmland Partners’ current renewable power portfolio can produce over 110 MW of electricity – enough to power 20,900 U.S. homes. The electricity is produced from three wind projects and five solar projects. The solar projects replace farm rents and wind projects supplement existing farm rents.
The firm has another 13,700 acres of renewable energy projects at various stages of planning and development or under option. These option payments generate $45 per acre in additional annual income for the company.
“Including the Clark County project, energy tenants account for nearly $1.5 million in revenue a year,” Pittman explained. “Given the long-term nature of solar and wind leases – ranging from 15 to 40 years – these projects reduce risk for the Company and provide long-term inflation protection.”
