Study Finds Wind and Solar Projects Do Not Negatively Impact Farming Economies

Research by CRES indicates that renewable energy infrastructure expansion in the U.S. benefits local economies without negatively affecting agriculture.

Key Takeaways

  • The study analyzed data from major U.S. agencies to assess the economic impact of wind and solar projects on agriculture.
  • Findings show no significant decline in farm output, wages, or employment due to renewable energy development.
  • Wind projects notably increase county GDP, driven by utilities sector growth, while solar projects have smaller positive effects.

According to a new study from the University of Missouri, utility-scale solar and wind projects do not have negative impacts on agricultural economies. The report by the Center for Rural Energy Security (CRES), a rural focused think tank at the University of Missouri, analyzed data from the U.S. Energy Information Administration, Bureau of Economic Analysis and Bureau of Labor Statistics to reach its conclusions.

The nationwide research report, “Powering Rural Prosperity: The Local Economic Impact of Utility-Scale Wind and Solar Developments,” aimed to determine if hosting renewable energy infrastructure had any negative impacts on local agriculture. According to the report, CRES researchers found no evidence that renewable energy expansion weakened farm output, wages, or agricultural employment.

The report was authored by CRES-affiliated faculty Adrienne Ohler, associate professor; Austin Landini, a center-affiliated research consultant, and Michael Sykuta, CRES director and associate professor. Key findings include:

  • No meaningful declines in GDP for agricultural economies, no significant reductions in agriculture employment, and no evidence of lower agricultural wages
  • Significant and persistent increases in county GDP from wind development, driven by the utilities sector.
  • Smaller effects and little evidence of meaningful GDP increases from solar development with the positive effects concentrated in the utilities and construction sectors.

The full report is available online at https://cres.missouri.edu/research-reports

This research comes as renewable energy continues to expand in the U.S. Last year, wind and solar generated a record 17% of electricity in the U.S. However, as demand rises, so do challenges such as community concerns and labor shortages. Studies such as this one from CRES aim to overcome those challenges to continue renewable expansion.

To learn more about the rising demand of solar and the challenges it faces, read “Demand for New Solar Farms Soars” by Tim Kridel.

About the Author

Michael Morris

Michael Morris

Michael Morris is Editor for EC&M. He is also Editor for EC&M's sister publications Electrical Wholesaling and Electrical Marketing. Email him at [email protected].

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