Wind Opportunities
 
There are many opportunities in the wind industry for landowners and communities interested in clean energy and economic development:
 
    * Wind Energy Project Types
    * Economic Development: The rural benefits of wind power.
    * Wind Energy Markets
    * Hosting Wind Projects:
 
          * Wind Energy Easements: Legal Issues
          * What does a farmer need to know about wind energy?
 
 
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What does a farmer need to know about wind energy?
 
Wind energy is a significant economic opportunity for many rural communities. Farmers and windy landowners need to understand their options in order to reap the benefits.
 
What are the different types for wind projects?
 
Wind turbines and wind projects come in many shapes and sizes. There are small turbines designed to supply electricity to a single house or farm. There are also large turbines that can provide energy for hundreds of houses. Wind projects can consist of a single large wind turbine, small clusters of large wind turbines, or even a hundred or more large wind turbines. These projects can be owned by utilities, wind development companies, farmers, local investors, or community entities like schools.
 
How much do farmers get paid to host wind turbines?
The most common way for a farmer to participate in a wind project is through leasing land, but there are other options. Wind lease terms vary quite a bit, but general rules of thumb are: $2,500 to $5,000 per turbine, $3,000 to $4,000 per megawatt of capacity, or 2-4% of gross revenues. Larger turbines should translate to larger payments. Compensation packages typically are offered as fixed yearly payments, as percentages of gross revenues, or some combination. If you are offered fixed annual payment, you should check whether a regular cost of living adjustment is included. If you are offered a percentage of gross revenues, you should make sure that you would have good access to the information used to calculate your payments.
 
What questions should I ask before signing a wind agreement?
Wind agreements are long term and legally binding, making it crucial for you to review them carefully and investigate anything you don’t clearly understand. You should always consult an attorney before signing anything. There are many questions you should ask before signing on the dotted line. Here are a few to start with: How much of my land will be tied up and for how long? How much will I be paid and how will I receive payments? How will this contract affect my ability to use my land for other purposes? Are there any adverse tax consequences for me? Are the payments adequate now and will they be adequate in the future? Is signing this contract compatible with my family’s and my goals for our land?
 
Windustry offers more detailed information on questions landowners should ask in Wind Easements: Legal Issues.
 
How will wind turbines affect my farm?  How much space do the towers take up?
Wind energy and farming are very compatible. Very little land is actually taken out of production, just enough space for the footprint of the tower and access roads, that is, about ½ an acre per turbine. However, multiple towers need to be spaces some distance apart to ensure that they all have good access to the wind. Landowners should stay involved with the siting of the turbines in order to minimize disruptions to normal farming operations. For example, access roads can often be routed along fence lines or ways to avoid isolating small pieces of land. Before signing a contract with a developer, you should get of sense of how they will be to work with on minimizing impacts on your farm.
How big are wind turbines?
Modern utility-scale wind turbines are usually between 50 and 100 meters (164 to 328 feet) tall. The blades can be 100 feet long, which means at their highest point they might reach more than 400 feet in the air.
 
Are wind turbines noisy?
Wind turbines produce some sound, but modern machines are not noisy. From a distance of 750 to 1,000 feet (the typical setback required from a residence) a wind turbine is no louder than a refrigerator.
 
How do wind turbines affect property values?
A comprehensive study of wind development and property values by the Renewable Energy Policy Project in 2003 showed that wind development usually as either no effect or a small positive impact on property values.
 
Is there enough wind on my land to make a wind project profitable?
Iowa is fortunate to have a good wind resources in much of the state, but not every location is going to be favorable for wind development. High, clear land that is well exposed to the wind is ideal. You can get a rough estimate of wind speeds in your area from the Iowa wind map available from the Iowa Energy Center at www.energy.iastate.edu. However, for most wind projects, a more detailed analysis will be necessary.
 
Will wind turbines affect my property taxes?
The owner of a wind project should be responsible for any property taxes associated with the wind development. This should be clearly stated in any contract with a developer.
 
Are wind turbines good for my community?
Wind projects bring significant economic development to their host communities through property taxes, new jobs, and work for local contractors. Every megawatt of wind represents $1,000,000 of investment. Wind provides these opportunities while producing clean and efficient power from a local natural resource.
 
 
       
 
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What does a farmer need to know about wind energy?       
 
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Originally prepared by Windustry for the Iowa Farm Bureau Spokesman in October 2004.
 
Wind energy is a significant economic opportunity for many rural communities. Farmers and windy landowners need to understand their options in order to reap the benefits.
 
What are the different types for wind projects?
Wind turbines and wind projects come in many shapes and sizes. There are small turbines designed to supply electricity to a single house or farm. There are also large turbines that can provide energy for hundreds of houses. Wind projects can consist of a single large wind turbine, small clusters of large wind turbines, or even a hundred or more large wind turbines. These projects can be owned by utilities, wind development companies, farmers, local investors, or community entities like schools.
 
How much do farmers get paid to host wind turbines?
The most common way for a farmer to participate in a wind project is through leasing land, but there are other options. Wind lease terms vary quite a bit, but general rules of thumb are: $2,500 to $5,000 per turbine, $3,000 to $4,000 per megawatt of capacity, or 2-4% of gross revenues. Larger turbines should translate to larger payments. Compensation packages typically are offered as fixed yearly payments, as percentages of gross revenues, or some combination. If you are offered fixed annual payment, you should check whether a regular cost of living adjustment is included. If you are offered a percentage of gross revenues, you should make sure that you would have good access to the information used to calculate your payments.
 
What questions should I ask before signing a wind agreement?
Wind agreements are long term and legally binding, making it crucial for you to review them carefully and investigate anything you don’t clearly understand. You should always consult an attorney before signing anything. There are many questions you should ask before signing on the dotted line. Here are a few to start with: How much of my land will be tied up and for how long? How much will I be paid and how will I receive payments? How will this contract affect my ability to use my land for other purposes? Are there any adverse tax consequences for me? Are the payments adequate now and will they be adequate in the future? Is signing this contract compatible with my family’s and my goals for our land?
 
Windustry offers more detailed information on questions landowners should ask in Wind Easements: Legal Issues.
 
How will wind turbines affect my farm?  How much space do the towers take up?Farming Close, Photo courtesy of Tom Wind.
Wind energy and farming are very compatible. Very little land is actually taken out of production, just enough space for the footprint of the tower and access roads, that is, about ½ an acre per turbine. However, multiple towers need to be spaces some distance apart to ensure that they all have good access to the wind. Landowners should stay involved with the siting of the turbines in order to minimize disruptions to normal farming operations. For example, access roads can often be routed along fence lines or ways to avoid isolating small pieces of land. Before signing a contract with a developer, you should get of sense of how they will be to work with on minimizing impacts on your farm.
 
How big are wind turbines?
Modern utility-scale wind turbines are usually between 50 and 100 meters (164 to 328 feet) tall. The blades can be 100 feet long, which means at their highest point they might reach more than 400 feet in the air.
 
Are wind turbines noisy?
Wind turbines produce some sound, but modern machines are not noisy. From a distance of 750 to 1,000 feet (the typical setback required from a residence) a wind turbine is no louder than a refrigerator.
 
How do wind turbines affect property values?
A comprehensive study of wind development and property values by the Renewable Energy Policy Project in 2003 showed that wind development usually as either no effect or a small positive impact on property values.
 
Is there enough wind on my land to make a wind project profitable?
Iowa is fortunate to have a good wind resources in much of the state, but not every location is going to be favorable for wind development. High, clear land that is well exposed to the wind is ideal. You can get a rough estimate of wind speeds in your area from the Iowa wind map available from the Iowa Energy Center at www.energy.iastate.edu. However, for most wind projects, a more detailed analysis will be necessary.
 
Will wind turbines affect my property taxes?
The owner of a wind project should be responsible for any property taxes associated with the wind development. This should be clearly stated in any contract with a developer.
 
Are wind turbines good for my community?
Wind projects bring significant economic development to their host communities through property taxes, new jobs, and work for local contractors. Every megawatt of wind represents $1,000,000 of investment. Wind provides these opportunities while producing clean and efficient power from a local natural resource.
 
Is hosting wind turbines my only option?
 
No. More and more farmers are exploring options for owning utility-scale wind turbinesthemselves. There are several successful farmer owned wind projects in Minnesota and many more in development around the Midwest, including Iowa. Some of these projects are owned by individual farmers, others involve larger groups of farmers working together. These projects keep significantly more of the economic benefits of wind development in the local community. However, developing and owning a project yourself involves quite a bit more time and research as well as financial risk. You have to balance risk and reward.
 
Other community owned projects are also gaining popularity. For example, Iowa leads the nation in school and municipal utility owned wind installations.
 
Where can I get more information?
The more you know about wind energy the better able you’ll be to benefit from it. You can find lots more information right here on the Windustry website as well as extensive links to resources from other organizations.
 
You can also join our new Wind Farmers Network online at www.windfarmersnetwork.org or visit other websites such as the American Wind Energy Association (www.awea.org) and the US Department of Energy’s Wind Powering America Initiative (www.windpoweringamerica.gov).