patrick branick รีทวีตแล้ว
There's been a recent uptick in farmers/landowners asking about these contracts:
• Solar panel farms
• Carbon contracts
• Wind energy farms
• Data center leases
While the $ might be attractive, the devil is in the details.
Each type of contract has unique issues, but here's some general risks to consider when approached:
→ Long term commitments
These contracts often span decades, potentially limiting future land use, succession planning, or adaptation to new technologies.
→ Assignment of rights
Many contracts allow unlimited assignment which means future companies aren't the ones you made the deal with.
→ Environmental compliance
The installation may lead to environmental concerns bumping up against federal or state regulations.
→ Impact on property value & marketability
This could negatively affect future sales or even the ability to get loans against the land.
→ Removal & restoration
Who is responsible and able to remove installations and restore the land at contract's end?
→ Maintenance
Is the company obligated to keep the structures in good repair and how can you hold them to it?
→ Interference with ag operations
Equipment & structures may hinder farming activities and reduce usable land area.
→ Tax implications
Changes in land use can affect property taxes and eligibility for ag tax benefits.
→ Liability for accidents or damages
Added infrastructure and workers increases the risk of the landowner potentially being implicated if people or property are harmed.
→ Energy production restrictions
Contracts may restrict the landowner's ability to develop or benefit from their own renewable energy projects.
→ Data ownership & privacy
Who owns and can access data generated on the land?
→ Stacking/multiple use restrictions
Some contracts prohibit engaging in other revenue generating activities on the same land.
→ Bankruptcy of company
What is the remedy if the company goes bankrupt? Or the third or fourth assigned company (see above risk)
→ Impact on neighbors
Large projects can strain relationships with neighbors due to landscape change, noise, and increased traffic.
This isn't an exhaustive list.
But, they're some issues of concern when wading through the 20+ page boilerplate agreements the companies are providing.
So, before signing on the dotted line... please have your attorney review the contract and advocate for you.
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