Texas farmers are increasingly leasing agricultural land to solar developers, providing some families with long-term income as drought, extreme weather, and rising farming costs put pressure on their operations. The shift is happening as Texas becomes the largest US producer of utility-scale solar electricity while electricity demand continues to climb.
Steve Cargil, 67, whose family has farmed near Uvalde since 1953, leased 600 acres, about a quarter of his land, to OCI Energy for a solar project. The agreement pays him $200,000 a year and has allowed him to continue farming during drought while concentrating limited irrigation water on his remaining crops.
Solar Leases Offer Farmers Long-Term Income
Cargil had expected one of his three children to eventually take over the farm. That became less certain after a 2018 hailstorm destroyed months of work on cabbage and onion crops overnight, leaving his son questioning whether farming was financially sustainable.
Cargil now describes the solar lease as transformative for the farm’s finances. OCI Energy, which features the Cargil family among its participating landowners, says it has agreements with more than 150 land hosts for solar and battery storage projects.
Solar developers typically need large areas of relatively flat land, making farms attractive locations. Mark Stover, executive director of the Texas Solar and Storage Association, said leases can run for 25 to 30 years and provide income that rises over time.
Texas has rapidly expanded solar generation as its population and electricity needs increase. The US Energy Information Administration expects utility-scale solar generation within the ERCOT power grid to reach 78 billion kilowatt-hours in 2026, compared with 60 billion kilowatt-hours from coal.
Some Rural Communities Push Back
Solar development has also drawn opposition in parts of rural Texas. Residents in Franklin County have raised concerns about tree clearing, changes to landscapes, water runoff, and large lithium-ion battery installations built alongside some solar farms.
Local lawyer BF Hicks said opposition grew after nearby projects cleared mature trees and one solar farm was built beside his family cemetery. Franklin County residents previously helped secure a moratorium on new solar construction, although it was later withdrawn following legal pressure from developers.
President Donald Trump has criticized wind and solar projects as harmful to farmers, while some Republican voters have expressed support for using multiple sources of electricity, including utility-scale solar, to control energy costs. Stover said solar and storage have also received support within Texas’ Republican-controlled legislature because of their contribution to grid reliability.
For Cargil, the lease has reduced financial uncertainty while allowing farming to continue on the rest of his property. He said the additional income has made him more confident that the family farm could eventually pass to another generation.
Featured image credits: Magnific.com
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