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Tuesday, July 29, 2025

Opinion: As the Trump administration puts the brakes on clean energy support, many rural farmers will feel the loss

Solar panels can help cut energy costs for farm operations like dairies. 
(Photo by S. Patrick, Portland Herald, Getty via The Conversation CC)
Wind and solar power add grid support and help farmers maintain steady incomes when weather, bugs or market upheavals make farming less profitable. Particularly for rural communities, taxes generated by renewable energy help local budgets pay for schools, roads and health care. "But some of that opportunity is now at risk as the Trump administration cuts federal support for renewable energy," writes Paul Mwebaze in his opinion for The Conversation.

In areas with wind turbines, farmers lease their land in return for payments. "Those historically were around $3,000 to $5,000 per turbine per year, with some modern agreements $5,000 to $10,000 annually, secured through 20- to 30-year contracts," Mwebaze explains. Roughly a third of the $3.5 billion paid out on wind turbine leases goes to rural landowners.

Solar energy adds to a farmer's bottom line by providing cheaper electricity throughout an agricultural operation. "Farmers use rooftop panels on barns and ground-mounted systems to power irrigation pumps, grain dryers and cold storage facilities, cutting their power costs," Mwebaze writes. 

In some rural communities, renewable energy is the "largest new source of economic activity, helping stabilize local economies otherwise reliant on agriculture’s unpredictable income streams," Mwebaze adds. The Iowa turbine blade factory, TPI Composites, serves as an example of how clean energy stimulates rural manufacturing. TPI "just reopened its plant in Newton, Iowa. Tax benefits in the 2022 Inflation Reduction Act helped boost [the industry] and the jobs and local tax revenue they bring in."

The Trump administration has "rolled back many clean energy incentives. It phased down tax credits for distributed solar projects, particularly those under 1 megawatt, which include many farm‑scale installations, and sunsets them entirely by 2028," Mwebaze explains. "It also eliminates bonus credits that previously supported rural and low‑income areas."

Renewable energy is one way the federal government could continue to invest in rural America, providing energy for communities and generating a reliable income source for farmers and smaller municipal budgets. "I believe homegrown renewable energy offers a practical path forward," Mwebaze writes. "Wind and solar aren’t just fueling the grid; they’re helping keep farms and rural towns alive."

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