INDIANAPOLIS – When deciding whether to approve a renewable energy project in their county, local leaders must look at how such a project might impact the community for years to come, according to the vice president of Indiana Farm Bureau (INFB).

“What do you want your county to look like in 20 years is a question that needs to be studied and considered today by your local leaders,” explained Kendell Culp, also a Jasper County commissioner. “What will it take to make your community sustainable well into the future?”

A topic that’s front and center in many Hoosier counties is renewable energy, especially solar and wind, he noted. Many farmers have possibly been engaged with or affected by a renewable energy project in their counties, Culp said.

“These days it seems like every economic development project will be controversial,” he stated. “The right decision is not always the most popular decision. In many rural counties, saying no to new development in reality is saying yes to higher taxes on farmers.”

Renewable energy projects are currently the only opportunity to lure new investment in most rural counties, Culp said. “Factories and other industries are not knocking on our doors wanting to come in.”

Culp was among several speakers featured Dec. 6 during an INFB pre-convention webinar on renewable energy and carbon credits. The organization’s convention was Dec. 9-10 in French Lick, Ind.

Connie Neininger, assistant director of Hoosiers for Renewables, said the organization believes the state’s economy will grow and work best for everyone when there is a mix of energy sources. Hoosiers for Renewables was started in 2019 to help educate the state’s residents about the economic benefits of renewable energy, she noted.

Renewables as a source of electricity in the state are on the rise but there’s still room for growth, Neininger said. In 2010, coal was responsible for generating nearly 83 percent of Indiana’s electricity, she said, while wind was at 2.2 percent and there were no solar projects in the state. By 2019, coal had dropped to about 54 percent. Wind was up to 5.5 percent and solar was at 0.3 percent. Natural gas and nuclear were also in the mix as options to generate electricity.

The benefits of renewables to the community include increased assessed valuation, decreased tax rates, stable income for landowners, infrastructure improvements and enhanced community services, Neininger stated. Renewable projects may also open the door for more development opportunities, she added.

Producers should consider farming the sun as another way to diversify their operations, Neininger said. “It is providing financial stability. It’s providing an income that’s not dependent on the weather, on trade wars, on grain prices or on the cost of propane to actually dry your grain. It’s a guaranteed payment for the life of that contract.”

Other benefits mentioned by Neininger include a minimal disruption of soil and to wildlife. Once the project is no longer producing energy, it may be removed and the area returned to productive farmland, she said.

There is a lot of talk about the amount of farmland that might be needed for a solar facility, Neininger pointed out. In Posey County, Ind., a proposed solar project will use less than 2 percent of the county’s farmland, she said. It will be a $264 million capital investment and will provide $35 million in tax benefits. “That’s a lot more than what agricultural uses might be providing today,” Neininger said.

Renewable energy fund payments have been used in Randolph County, Ind., to pay for improvements to schools and for broadband across the county, she said.

Carbon credits

Farmers interested in participating in carbon credit programs should fully understand the contracts they are signing, cautioned Shelby Swain Myers, an economist with the American Farm Bureau Federation.

Carbon agriculture ecosystem credit markets are voluntary, incentive-based national markets designed to sell ag ecosystem asset credits. Depending on the program, farmers may be paid per practice or based on outcome, such as increases in soil carbon or improved water quality. Eligible conservation practices may include cover crops, no-till, strip-till and crop rotation.

To participate, farmers enter into contracts that could be for five to 10 years, Myers said. “It’s important that you pay attention to (the length of the contract), that you know that you’re signing on for a long-term contract. Understanding what you’re committing to and how long is a very important piece for producer enrollment.

“Be sure to ask for help on those contracts because every one of them are different. There’s a lot of wonky terms in there and they’re not quite written for farmers. They’re almost written for a lot of tech folks who are jumping into the ag space.”

Truterra launched its first carbon program this year and will return about $3 million to participating farmers, said Amanda Bahn-Ziegler, eastern account manager with the company.

Over the course of the year, Truterra learned a few things about the amount of data required and what help farmers may need, she said. “The data lift is significant; it was a lot more work than probably anyone anticipated it to be.”

The amount of data was needed to prove what happened on the farm, she noted. In addition to financial incentives, the company learned producers need advice and guidance on how to make such a program – and the changes required on the farm – work, she added.