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L E T T E R S
Article is ultimately misleadingArticles on wind farming help farmers come to grips with the benefits and downsides of signing a wind farm lease or building their own windmill. (Wind farms - cash crop of the century for Ontario farmers? by Robert Roth) your article finished with an emphasis on finances that is accurate as far is goes but is ultimately misleading.A more complete review of the financial considerations of a wind farm lease would emphasize the following: 10 the annual rent will likely be about $5,000 2) because of restrictions on putting up new buildings, the value of the farm will likely go up more slowly with a lease than without; 3) if the rent does not fully offset declines in the appreciation of the farm, the lease actually costs the farmer money. For example, if a farm normally appreciates by $15,000 per year before the lease and only appreciates by $10,000 a year after a lease, then, without regard for taxes or the immediacy of income, the farmer is netting nothing for having signed the lease. Like anything else that is built on a farm, a wind tower would add to the value of the farm as well as the income and the wind tower should fit into your plans for the farm as well as the tenant's plans. Because of the impacts of wind farm leases, on new buildings and farm asset values the OFA does not endorse any existing wind farm lease. The OFA is developing a model lease for members that limits these problems and starts with a lease written by the farm landlord, not the wind tower tenant. I hope this helps your readers Ron Bonnett
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