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Abstract
From 2011 to 2020, about 3.5 percent of U.S. farm operations received payments for hosting commercial energy production from resources such as oil, natural gas, and wind power on their land. The payments can be a source of significant income for farm operators. During the period, farmers received an annual average of $30,482 (in 2020 U.S. dollars) in commercial energy payments per farm, about 30 percent of a typical operation’s off-farm income. Average annual energy payments during that time also were higher than what farmers received through Government programs. USDA, Economic Research Service researchers found the size of energy payments to farm households are driven primarily by farm size, energy market conditions, and the location of the operation.