Impacts of Large-Scale Solar-Enabling Legislation on Farmland Values

Abstract

Legislation promoting large-scale solar could potentially elevate farmland prices. Using approximately 12,000 farmland transactions (2007–2021), we study the impact of the 2015 Shared Renewable Program (SRP) and relevant policies in New York state. We find that large solar-suitable parcels within 2 miles of substations sold for 15%–18% more than comparable parcels farther away after the program’s implementation. This effect is absent for parcels unsuitable for solar but desirable for housing, suggesting it is unrelated to housing pressure. We also find a stronger effect on farmland in regions with higher electricity prices (about 20%), suggesting the impact of the SRP varies with location and time.