The growing concern of solar farms versus food production
By Rob Blair, Partner and ARA specialist
The recent case of Eden Farm, North Yorkshire has highlighted the ongoing tension between landowners, tenant farmers, and renewable energy developers.
Despite the Tenant Farmers Association (TFA) calling for protections, the Government approved an appeal allowing the farmland to be converted into a solar and battery storage site.
This raises key concerns:
- How much productive farmland will be lost to energy projects?
- What does this mean for food security in the UK?
- How can farmers protect their business interests amid increasing land competition?
While renewable energy projects offer environmental benefits, they also present financial and business risks for those who rely on agricultural land for their livelihood.
So, how does this impact farm businesses financially?
Land access and business stability for tenant farmers
For tenant farmers, land security is a pressing issue.
If landowners decide to lease farmland for solar projects, tenant farmers may be forced to relocate or shut down their business entirely.
What can farmers do?
- Review tenancy agreements carefully – Understand what rights you have and whether there are any clauses allowing the landowner to reclaim the land for alternative use.
- Negotiate long-term security – If possible, push for clauses that protect your ability to continue farming.
- Plan for alternative land use options – Consider diversifying to reduce reliance on a single farm tenancy.
Rising land prices and rental costs
As land becomes more valuable for solar farms and other green energy projects, rental prices may increase, making it harder for tenant farmers to afford land.
Competition for land between farmers and developers could further drive up costs.
What can farmers do?
- Work with our financial advisers to forecast potential rent increases and explore cost-saving strategies.
- Explore diversified revenue streams that could help offset increasing costs, such as agri-tourism or conservation grants.
- Consider purchasing land where possible to reduce dependence on tenanted land.
Government incentives and compensation – Are farmers being left behind?
While landowners who lease their land to solar developers benefit financially, tenant farmers often receive no direct compensation when land use changes.
What can farmers do?
- Engage with industry groups like the TFA to push for stronger tenant farmer protections.
- Explore grant funding for farm business diversification, such as investing in regenerative farming or eco-friendly initiatives.
- Work with us to identify tax reliefs and subsidies that could help ease financial pressures.
The conflict between food production and renewable energy is unlikely to disappear anytime soon.
For farm businesses, the key to survival is understanding the risks, planning ahead, and exploring new financial strategies.
Need guidance on land uncertainty, financial planning, or alternative business strategies? Contact us today to explore your options.