Solar power system installations impact less than 1 percent of Arkansas' ag land

Solar power system installations impact less than 1 percent of Arkansas' ag land
by John Lovett
Fayetteville AR (SPX) Jun 03, 2025

Large-scale solar power arrays occupy about 0.2 percent of agricultural land in Arkansas, according to an analysis by the University of Arkansas System Division of Agriculture.

Solar energy production is increasingly being used to meet both energy needs and zero net emissions goals within the United States. Arkansas is following this trend with several utility-scale solar energy production systems built in 2023 and 2024, and more scheduled to come online in the following years. This has raised some concerns over the displacement of agricultural land for non-food production purposes.

"With the Arkansas economy more reliant on agriculture compared to the nation and surrounding states, diversion of agricultural land to other uses draws producer and consumer interest," said Mike Popp, Harold F. Ohlendorf Professor of agricultural economics and agribusiness and co-author of a recently released fact sheet titled "Agricultural Land Footprint of Solar Photovoltaic Installations in Arkansas."

While generally considered to have minimal impact on crop prices, other questions about proximal real estate value impacts, exposure to weather risk and land restoration considerations exist, the fact sheet noted.

By 2026, there will be 15 counties in Arkansas, mostly in the agricultural-dominated Delta, with utility-scale solar arrays. Utility-scale is defined as 20 megawatts or larger. Currently, 11 counties have these large-scale solar projects on lands defined by a U.S. Department of Agricultural census as agricultural land. Four more utility-scale projects are scheduled through 2026, including one in Grant County on land considered "woodland or timberland areas."

Using information gathered from the U.S. Energy Information Administration, the researchers show that utility-scale solar arrays will occupy 0.2 percent of the state's 13.7 million acres of agricultural land under current projections through 2026. In counties where these larger solar arrays are used, land use ranges from 0.2 to 1.7 percent of agricultural land.

The utility-scale solar projects range from up to 445 acres for a 50-megawatt site to up to 2,670 acres for a 300-megawatt site.

As of 2023, the state had about 15,000 megawatts of electrical generating capacity, with natural gas, coal, nuclear and other energy sources like hydropower, solar and wind. According to the study, up to 133,500 acres of land would be required across the state to double the state's electrical generating capacity with solar, offsetting demand for power from natural gas, coal, nuclear and hydropower during the day.

"Even under this extreme level of solar development, which is unlikely to happen, solar would use less than 1 percent of the 13.7 million acres of agricultural land," Popp said.

Popp is a faculty member with the Arkansas Agricultural Experiment Station, the research arm of the Division of Agriculture, and the Dale Bumpers College of Agricultural, Food and Life Sciences.

Solar's growth

Solar energy generation has nearly doubled in efficiency in the past decade. To produce 1 megawatt - enough to power roughly 150-200 homes annually - about 5.5 acres of land is required, according to a 2022 study cited by the authors. By contrast, a 2013 study showed that 1 megawatt of solar energy production required about 9 acres of land.

The number of solar arrays in Arkansas has also grown rapidly in recent years, with 1,100 megawatts added in 2024 and another 400 megawatts scheduled for this year.

According to USDA data cited by the researchers, solar projects have removed less than 0.05 percent of land from agricultural purposes nationwide.

Agrivoltaics

With about 28,000 acres of agricultural land comprised of irrigation reservoirs, Popp said floating solar arrays have become an interesting area for research to decrease impact on agricultural land use.

Several other opportunities exist for solar power systems to integrate with agriculture, known as "agrivoltaics," Popp said. Combining solar installations with sheep grazing and honeybee management are commonly cited examples of agrivoltaics.

Preferred lands

Private landowners often lease land for solar development, sometimes over a 30-year contract, the study explained. Voluntary solar land leases range from $450 to $2,500 per acre with a preference for cleared, leveled or southward sloping land that are not wetlands.

"Past cost trends and future projections showcase that utility-scale projects to be the least-cost renewable energy source," the study states. "As such, expansion of this sector is expected. With careful planning, such systems can lead to economic and environmental benefits with minimal negative agricultural land use implications."

Authors of the study included Travis Wagher, a Public Policy Program Ph.D. student at the University of Arkansas; Hunter Goodman, assistant professor with the Division of Agriculture's Cooperative Extension Service in the community, professional and economic development department; Shelby Rider, program associate for the experiment station in the agricultural economics and agribusiness department; and Yi Liang, an associate professor of biological and agricultural engineering for the Division of Agriculture and the University of Arkansas' College of Engineering.

Solar on poultry farms

Popp and colleagues in the agricultural economics and agribusiness department and the USDA's Economic Research Service have also recently published a study in Agricultural Finance Review examining financing options for solar investment on poultry farms.

Using their Poultry Solar Analysis decision support software, they showed that a 10-year note bundled with a second loan that is repaid using income tax credits over the course of one to five years, resulted in a lower break-even electricity cost while addressing cash flow and borrowing capacity concerns. A longer 20-year note further eased cash flow issues at the cost of less favorable leverage and net present value, the study concluded.

Research Report:Agricultural Land Footprint of Solar Photovoltaic Installations in Arkansas