Foreign Wind and Solar Leases Reshape US Farmland Landscape

By Andi Anderson

Long-term foreign-held leases for wind and solar energy projects now cover millions of acres of agricultural land across the United States. According to data from the U.S. Department of Agriculture's Agricultural Foreign Investment Disclosure Act (AFIDA), these leases account for a significant share of reported foreign interests in American farmland.

AFIDA is a disclosure law that requires foreign entities to report interests in U.S. agricultural land. This includes leases lasting 10 years or longer. However, a lease does not transfer ownership of the land. The landowner continues to hold the title, and ownership remains unchanged when the lease expires.

Data from AFIDA's 2024 current holdings file show that foreign entities hold approximately 6.9 million acres under long-term leases. Of that total, about 6.3 million acres, or 90 percent, are connected to wind and solar energy projects. Wind projects account for around 5.3 million acres, while solar projects cover nearly 686,000 acres. Another 251,000 acres are associated with entities involved in both wind and solar activities.

A key point in understanding these figures is that AFIDA reports the entire parcel tied to a lease rather than only the area occupied by energy infrastructure. In many wind projects, turbines and roads use only a small portion of the leased land, allowing farmers to continue crop and livestock production. Solar projects generally occupy a larger share of a site and may remove land from agricultural use during the project's lifespan.

The report also found that cropland makes up the majority of leased acreage. About 76 percent of the land under foreign-held wind and solar leases is classified as cropland, while 17 percent is pasture. The remaining acreage includes other agricultural land, forests, and non-agricultural areas.

These leases are distributed across 555 counties in 42 states. Although the acreage sounds substantial, the impact is relatively small when compared to total U.S. farmland. Nationwide, foreign-held wind and solar lease acreage represents only about 0.7 percent of all land in farms.

Oklahoma leads the nation with nearly one million acres under foreign-held energy leases, followed by Texas, Nebraska, New Mexico, and Kansas. Illinois ranks seventh, with approximately 358,000 acres, mostly tied to wind energy projects located in central parts of the state.

The geography of these leases closely follows areas with strong wind resources. Large concentrations are found in the Great Plains, Texas, the Dakotas, Illinois, Indiana, and parts of New York. Solar lease projects are more widely scattered across the country.

Canada is the largest foreign investor, accounting for 59 percent of all reported wind and solar lease acres. Other major investor countries include Italy, the United Kingdom, Denmark, the Netherlands, and France. Together, investors from North America, Europe, and Australia account for nearly all reported foreign-held energy lease acreage.

The findings suggest that most foreign agricultural land leases support renewable energy development rather than land ownership expansion. Because landowners retain ownership and much of the leased acreage remains in agricultural production, experts recommend evaluating lease holdings separately from direct farmland ownership when discussing foreign investment in U.S. agriculture.

FAQs:

1.What is AFIDA and why does it track foreign-held agricultural land leases?

The Agricultural Foreign Investment Disclosure Act (AFIDA) requires foreign entities to report any interest in U.S. agricultural land, including leases lasting 10 years or longer. The law helps track foreign involvement in agricultural land but does not restrict ownership or leasing.

2.How much U.S. farmland is under foreign-held wind and solar leases?

Foreign-held wind and solar leases cover approximately 6.3 million acres, representing about 0.7% of all U.S. land in farms. Wind projects account for the majority of these leased acres, while solar projects make up a smaller share.

3.Does a foreign-held lease mean the land is foreign-owned?

No. A lease and land ownership are different. Under a long-term lease, the landowner retains ownership of the property. When the lease expires, the land remains with the original owner.

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