Solar Farm

[poorboy]

Heard of a solar farm locally that they were selling the top soil off during construction and no weed control at all during the multi year construction.

Overall decent money today, but needs to be indexed to inflation, not a 1.5% annual increase with the government money printing press.

This income will all be passive income and get taxed at the highest rate.

[blackpowder]

Maybe talk to some out here.
I've been told the deals offered here were more money.
But income not guaranteed. Tied to power.
Land could be lost somehow if their creditors called.
Cleanup on you.
I'd be tempted. A living wage for life with no expense. I get it.
But dyod. I've heard some shady "contracts". Some have said when they sought council, were told contract arse wipe.

[AlbertaFarmer5]

And if the company goes bankrupt, you get stuck with the commercial rate property tax bill. Until the last piece of infrastructure is removed at your expense.

[AlbertaFarmer5]

Does Saskatchewan have the equivalent of the farmers advocate which we have in alberta? They are a wealth of information on this topic.

[jazz]

This is a French company Neoen Renewables with Brookfield as a shareholder so probably not a fly by night company.

Accountant said this is rental of a personally held asset so no corporate lease rates apply. Personal lease prices income taxed at marginal personal rates.

parents said just sell the land to them with the 30yr lease pmts added on and be done with it. CG is going to less tax in the long run than rent.

[oldjim]

Two thoughts on this:

1. No
2. Hell no.

[jazz]

Two thoughts on this:

1. No
2. Hell no.

That’s great but what is your reasoning?

[AlbertaFarmer5]

That’s great but what is your reasoning?

If for no other reason, I have integrity and wouldn't want to be a hypocrite after everything that has been said about solar. But I also recognized that money talks.

[oldjim]

That’s great but what is your reasoning?

Well on a personal level I'm your neighbour and don't really care to have solar panels or windmills in the area. On a business level tying up land in such a long term deal doesn't make much sense. What looks like big money today could be chump change in five years let alone over the long term. Land prices have went up 40-50% in the past three years around here. Who is going to buy it from you should you decide you want to (or have to) sell. In that respect windmills are a better option because at least most of it still remains farmland - similar to having oil wells. Solar panels could end up as fields of weeds - who maintains it? And will it be looked after long term? Or will it end up like abandoned oil and gas wells? I can't see myself ever agreeing to something like that but to each his own.

Edit - here's a sample of what's going on down south: [url]https://forums.yesterdaystractors.com/threads/farmland-cash-rent-prices-solar.1763876/[/url]

[sumdumguy]

Do you get all the power you can use free forever - or however long it takes them to decommission those panels?