Why would a farmland owner care about wind energy grants entailed in the Stimulus Package? Simple, their property and income will increase in value from it. 

According to the February 13th article from RenewableEnergyWorld.com, “House Passes Final Version of Stimulus Package,” the new Stimulus Package offers tax breaks and benefits for people who develop or use renewable energy. Presently wind developers have a difficult time arranging financing due to the lack of credit available in the banking system. To solve the lack of financing available, the US Government is offering grants to renewable energy developers for 30% of the facility cost.

Renewable energy developers must apply by September 20, 2011 to qualify for the 30% grants. The US Government has not said how much money they have made available for these grants. 

The bill will also extend the wind facilities tax credit for three years to December 31, 2012.

What does this mean for farmland owners? The new Stimulus package should provide the incentive for renewable energy companies to start new operations in the near-term in order to capitalize on the tax credits and grants. As we have said before, wind development is very valuable to the landowner. Annual leases can be between $4,000-$6,000 per turbine per year.

Now is a great time to invest in farmland, and with the new Stimulus Plan being passed, these grants will raise the value of farmland by finally making wind power economical and a reality. 

- Colvin