Beyond the Trade Wars: Why Solar Leasing Makes Sense
The current trade situation highlights a fundamental challenge: modern agriculture has become deeply intertwined with international policy, making farm income subject to forces completely outside farmers' control. Smart farmers are looking for ways to reduce their exposure to these external risks.
Agriculture in the Policy Arena
Trade policies serve multiple purposes beyond agriculture—they're used to address immigration, national security, and other policy objectives. When agricultural trade becomes part of broader policy negotiations, farmers often experience the economic consequences.
For example, wheat prices started to climb earlier this year but declined when tariff discussions intensified. As one farmer noted, "I mean, that was a $30,000, $35,000, $40,000 hit that we've taken," demonstrating how policy uncertainty can impact farm income even before policies are implemented.
The Cycle of Policy and Market Response
This isn't the first time farmers have been affected by trade policy changes. During the previous administration, China—previously the largest buyer of U.S. soybeans—implemented retaliatory tariffs in response to U.S. trade actions. Even after a 2020 trade agreement partially restored soybean exports, rebuilding those market relationships took time.
The pattern is familiar: policy changes lead to trade disruptions, which affect farmers, which often leads to government support programs. The financial strain has left many farmers relying on various forms of government assistance. "Input costs for farmers remain a challenging factor, further compounded by ongoing uncertainty in markets."
While support programs provide necessary relief, they create dependency rather than solving the underlying challenge of income volatility. Some farmers have noted that knowing support might be available makes the economic uncertainty more bearable, but it doesn't address the root issue of unpredictable income.
The Real Impact on Farm Communities
The effects go beyond individual farm finances. These farm closures would have ripple effects across entire communities, affecting people and companies that rely on their business, Maples concluded. "A bad farm economy hurts rural America at the end of the day."
At a recent stakeholder meeting at the Port of Oakland headquarters regarding tariff impacts, Port of Oakland Executive Director Kristi McKenney warned that a tariff-induced downturn in the port's cargo volume — whether from import slowdowns or retaliatory export losses — ultimately could jeopardize job stability and the region's economic health.
Why Policy Uncertainty Matters for Long-term Planning
"The uncertainty hits just as operating loans are being secured and spring planting approaches, leaving farmers in a tough spot," noted the American Farm Bureau Federation, which supports working with the administration to position farmers for success.
For farmers trying to make long-term decisions—about land purchases, equipment investments, or succession planning—policy uncertainty makes everything more difficult. How do you plan for the future when your income depends on international relationships that can change with shifting policy priorities?
The Solar Alternative: Reducing External Risk
Solar leasing offers something increasingly valuable in agriculture: income that's largely insulated from policy changes and international trade dynamics. Here's why:
Domestic Market Focus: Solar electricity is sold domestically, so it's not subject to export restrictions or international trade disputes.
Broad Support: Solar energy enjoys support across party lines because it creates jobs, reduces energy costs, and supports energy independence.
Long-term Contracts: Solar lease agreements typically span 25-30 years, providing income stability across multiple policy cycles and administrations.
Growing Demand: Electricity demand is increasing due to data centers, manufacturing, and electrification, creating strong market fundamentals regardless of policy changes.
Understanding the Full Picture
The United States imports 15 percent of its overall food supply. In 2023, US food imports were valued at $189 billion. A 10 percent import tariff would increase the cost of imported food by $18.9 billion; a 25 percent tariff would increase it by $47.25 billion.
The complexity of modern agriculture means that political decisions have cascading effects. However, US fruit and vegetable production does not currently meet domestic demand and must be supplemented by imports. According to the Peterson Institute for International Economics, tariffs are projected to increase household expenses by approximately $2,600 annually.
These interconnections make it impossible to predict how political changes will affect farm income. Solar leasing provides a way to reduce exposure to these unpredictable political risks.
Learning from Canada's Perspective
Canadian and American farmers, who have long relied on a steady exchange of crops, equipment, fertilizer and other agricultural goods, are bracing for impact. "Our business model is always long term, sustainable relationships: you share the pain in bad times and you share the gains in good times," he says. "We're going to protect our long term relationships with our U.S. neighbours forever."
Even Canada's largest potash producer recognizes that political relationships are temporary, but business relationships need to be permanent. This perspective applies to solar leasing as well—it's about building long-term partnerships that can weather political changes.
What This Means for Your Farm
The current trade situation illustrates why diversifying income sources makes sense. Economic uncertainty can affect farmer confidence in making major investments and can impact broader economic conditions.
Solar leasing provides:
External Risk Reduction: Income that doesn't depend on international trade relationships or policy negotiations
Income Diversification: Revenue source that's uncorrelated with commodity prices
Long-term Stability: Contracts that provide consistency across different policy environments
Local Economic Benefits: Investment in domestic energy infrastructure that supports rural communities
The Fellowship Solar Energy Approach
At Fellowship Solar Energy, we believe in building partnerships that can weather uncertainty of all kinds. While we can't control trade policy or international relations, we can offer farmers income stability that doesn't depend on external policy decisions.
Our approach focuses on:
Long-term thinking: Building relationships that last decades, across different policy environments
Transparent communication: Honest discussions about both opportunities and risks
Local focus: Supporting rural communities with stable, long-term investment
Farmer-first values: Ensuring that our success depends on your success
Looking Beyond the Current Situation
The current trade situation will eventually resolve, but the underlying challenge won't: agriculture has become dependent on factors outside farmers' control. Whether it's trade policy, climate change, or global market volatility, farmers need income sources that provide stability in uncertain times.
Solar leasing offers that stability. It's not about replacing farming—it's about creating a financial foundation that allows you to farm more successfully by reducing your exposure to external risks.
Your Next Steps
If you're concerned about income volatility due to factors beyond your control, it might be time to explore solar leasing. The conversation is confidential, the assessment is free, and there's no pressure to move forward unless it makes sense for your situation.
We can't control trade policy, but we can offer you an income source that doesn't depend on international relationships or policy negotiations. In times like these, that kind of stability is worth exploring.
Contact Fellowship Solar Energy when you're ready to discuss your options. We're here to provide information and realistic assessments, not sales pressure. Sometimes the best response to uncertainty is to create your own stability.