1. On-Farm Energy Consumption, Production, and Emerging Issues
Energy in Agriculture
On-Farm Energy Consumption, Production, and Emerging Issues
Ag Credit Seminar – Moving Your Farm Forward
December, 2017

2. Program Overview Introduction to Energy in Agriculture
Leasing Agricultural Land for Energy Development
Distributed Energy Generation Projects in Agriculture
Additional Resources

3. Introduction to Energy in Agriculture

4. Summary of Survey Findings

5. Energy Production and Consumption in Agriculture
In 2014, the agricultural sector consumed 1,714 trillion BTU’s of energy.
An estimated 57,000 farms were engaged in producing renewable energy, providing electricity to power their farm.
Roughly 6% of US farms averaged $56,000 in leasing royalty payments from energy production.
Approximately 10,000 farms leased they're wind rights as part of a utility scale windfarm.
Nearly 35% of active U.S. farms and ranch land was located in counties overlaying a shale play.
In 2014, the agricultural sector consumed 1,714 trillion BTU’s of energy. This accounts for roughly 1.74% total US energy consumption.
In 2012, an estimated 57,000 Farms or 2.7% of total US farms
Source: USDA Economic Research Service Report, Trends in U.S. Agriculture Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass.

6. On-Farm Energy Production
Several surveys regarding on-farm renewable energy generation have been conducted in recent years. In 2008, the Agricultural Resource Management Survey (ARMS) was supplemented with a bioenergy survey from ERS and NASS, and in 2009, the 2007 Census of Agriculture was supplemented with an on-farm renewable energy production survey (U.S. Department of Agriculture, 2011). The 2012 Census of Agriculture asked farmers and ranchers about their use of various types of renewable energy-producing systems, whether they leased wind rights to others, and whether they harvested cellulosic biomass for renewable energy production. Figure 14 presents the results of this latest Census of Agriculture for farm businesses and all other farms and ranches (USDA, NASS, 2014a). In 2012, 74,535 farm businesses and other farms (3.5 percent of all farms) had renewable energy- producing systems (solar panels, geoexchange, wind turbines, small hydro, or methane digesters), produced biodiesel or ethanol, or leased their wind rights to others.
Capacity installed on-farm is generally small, on average less than 100 kW for wind and 4.4 kW for solar (Xiarchos and Vick, 2011). A small wind system of 100 kW could generate enough electricity to meet the demand for most farms, as detailed in the section on small wind and hydro. A large technical growth potential remains for renewable energy systems on farms, as farms generally have the space to accommodate such systems.
Source: USDA Economic Research Service Report, Trends in U.S. Agriculture Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass.

7. Solar = 2,448 Wind = 40 Biomass = 39 Hydroelectric = 2 Solid Waste = 2
PUCO Certified Renewable Energy Facilities in Ohio by Type
Solar = 2,448
Wind = 40
Biomass = 39
Hydroelectric = 2
Solid Waste = 2
In total 96% of certified renewable energy projects in Ohio are PV Solar.
Why are there so many PV Solar projects? Maintenance, Incentives, Cost (MIC)
26 > 1 MW Solar (1%)
12 > 1 MW wind (30%)
2,545 total RE projects / 1.6% are larger than 1 MW
Source: Ohio's renewable energy portfolio standard. Updated November, 2017
Source: February, 2016

8. Leasing Agricultural Land for Energy Development

9. Leasing Land for Wind Farm Development
Ohio Wind Projects Greater than 5 MW
2009: American Municipal Power / OMEGA JV 6 – 7.2 MW
2011: Blue Creek Wind Farm – 304 MW
2011: Paulding Wind Farm II – 99 MW
2015: Trishe Wind Ohio – 100 MW
2017: Paulding Wind Farm III MW
Source: Ohio's renewable energy portfolio standard. Updated November, 2017

10. Leasing Land for Wind Farm Development in Ohio
Source: Ohio's renewable energy portfolio standard. Updated November, 2017

11. Leasing Land for Solar Farm Development
Ohio Solar Projects greater than 5 MW
2009: Wyandot Solar Facility – 12 MW
2011: BNB Napoleon Solar LLC – 9.7 MW
2017: DG AMP Solar Bowling Green – 28.7 MW
Vinton Solar Center (PUCO Case # EL-BGN)
125 megawatts / approximately 1,950 acres
Hardin Solar Facility (PUCO Case # EL-BGN)
150 megawatts / approximately 1,115 acres
Hillcrest Solar Farm (PUCO Case # EL-BGN)
125 megawatts / approximately 2,100 acres
Source: Ohio's renewable energy portfolio standard. Updated November, 2017

12. Leasing Land for Energy Development - Lessons Learned
Wind lease allows to continue farming while solar often converts land use.
Lease typically fixed amount not influenced by system production
Wind lease typically pay amount per turbine
Solar lease typically pays based on amount per acre
Who is offering the contract?
Development vs. operational lease
Taxation issues, CAUV, future use of property/access, surface/subsurface water, project decommissioning, insurance, maintenance
This is a long term commitment, do your homework!
OSU Extension's Agricultural & Resource Law Program (farmoffice.osu.edu)
Attorney with experience with energy contracts
Accountant/financial advisor
Ohio Farm Bureau

13. Distributed Energy Generation Projects in Agriculture

14. Is Wind or Solar Best for my Farm?
Photo by Warren Gretz, NREL

15. Solar = 2,448 Wind = 40 Biomass = 39 Hydroelectric = 2 Solid Waste = 2
PUCO Certified Renewable Energy Facilities in Ohio by Type
Solar = 2,448
Wind = 40
Biomass = 39
Hydroelectric = 2
Solid Waste = 2
In total 96% of certified renewable energy projects in Ohio are PV Solar.
Why are there so many PV Solar projects? Maintenance, Incentives, Cost (MIC)
26 > 1 MW Solar (1%)
12 > 1 MW wind (30%)
2,545 total RE projects / 1.6% are larger than 1 MW
Source: Ohio's renewable energy portfolio standard. Updated November, 2017
Source: February, 2016

16. Mid-Sized Wind Development in Ohio
Cooper Farms – 4.5 MW
Haviland Plastic Products – 4.5 MW
Marathon/Harpster Wind MW
Ball Corp./Zephyr Wind MW
Whirlpool Corp. (Findlay) - 3 MW
Whirlpool Corp. (Marion) – 4.5 MW
Whirlpool Corp. (Greenville) – 4.5 MW
Whirlpool Corp. (Ottawa) – 1.5 MW
Valfilm – 3 MW
Source: Ohio's renewable energy portfolio standard. Updated November, 2017

18. Business Energy Investment Tax Credit by Type (Source: dsireusa.org)
Technology
2016
2017
2018 
2019
2020 
2021
2022
Future Years
PV, Solar Water Heating, Solar Space Heating/Cooling, Solar Process Heat
30%
26%
22%
10%
Hybrid Solar Lighting, Fuel Cells, Small Wind
N/A
Geothermal Heat Pumps, Microtubines, Combine Heat and Power Systems
Geothermal Electric
Large Wind
24%
18%
12%
Source: Public Utilities Commission of Ohio.
Report reflects approved cases through Friday, July 29, 2016

19. Small Scale Wind Generators
UNL installed small wind & solar to research reliability:
5 kW Evance turbine on a monopole tilt up tower
6 kW Eoltec turbine on a guy wired tilt up tower
6 Solar panels, 230 Watts each
the two blade Eoltec turbine had a broken disk which connected the shaft to the generator.
Evance turbine inverter shut down due to over voltage.
Source: University of Nebraska Extension, ( ) Wind Turbines and Solar Array's at Haskell Ag Lab What We've Learned.

20. Distributed Generation Renewable Energy Estimate Operations and Maintenance Costs ($ per/kW)
EIA expects utility-scale solar photovoltaic (PV) power capacity to grow by more than 9 gigawatts (GW) in 2016, after growing by 3 GW in PV capacity is forecast to increase by an additional 1 GW in States leading in utility-scale solar capacity additions are California, Nevada, North Carolina, Texas, and Georgia.
Source: February, 2016

21. Distributed Generation Renewable Energy Installed Costs ($ per/kW)
Source: February, 2016
EIA expects utility-scale solar photovoltaic (PV) power capacity to grow by more than 9 gigawatts (GW) in 2016, after growing by 3 GW in PV capacity is forecast to increase by an additional 1 GW in States leading in utility-scale solar capacity additions are California, Nevada, North Carolina, Texas, and Georgia.

22. Additional Resources
go.osu.edu/farmenergy

23. Thank You!
Eric Romich Field Specialist, Energy Development OSU CFAES, Department of Extension 109 S. Sandusky Ave Upper Sandusky, OH Office Mobile