INDIANAPOLIS, Ind. — The idea of harvesting wind energy on farmland is starting to catch on among Indiana landowners. Just ask the Indiana Farm Bureau (IFB).

An increasing stream of phone calls and questions about the issue prompted the farm group to sponsor an informational meeting for landowners in Randolph County last week, focusing on wind energy leases and easements.

“It’s kind of a hot issue right now,” said Justin Schneider, staff attorney with IFB. “I definitely think the media hype around wind energy has helped people become aware of the issue. This is the first meeting we’ve done on wind energy, but there’s a potential that we’ll do more if there are more projects coming to other areas.”

For electric utilities and wind energy developers, the race is on to find the breeziest parts of the state and gain access to the most optimal spots to place wind turbines. Several developers are already on track to build wind farms in Benton County in northwestern Indiana, and electric utility Indiana Michigan Power is currently testing the wind capacity in Randolph County, in the east-central part of the state, for the same purpose.

As a result, landowners might find themselves considering several offers from different companies vying to build turbines, put down electrical cables or build access roads in their fields. Hosting a wind turbine could provide a nice additional income and generally seems more straightforward than providing land for a pipeline project, but there are a few things landowners should be aware of, said Christopher Earle, an attorney with Bose McKinney & Evans in Indianapolis, who spoke at the IFB meeting.

“Every circumstance is different and the companies offer different concepts,” he said. Before signing a contract, Earle recommended landowners do the following.

Know lease from easement

An easement usually pertains to a certain portion of a landowner’s property and tends to be long-term in nature. It typically allows both the landowner and the party seeking the easement to use the property; however, the interest of the landowner is considered inferior.

A lease, on the other hand, typically allows the lessee to use the whole property for a specific time, but the landowner’s interest is still considered superior. Wind energy projects usually involve both leases and easements.

“A lease typically entails the portion of the property where the turbine sits. Easements allow the developer to build access roads and whatever infrastructure is necessary to get the power to the grid,” explained Earle.

Consider length of payments

Developers may either offer landowners a bigger payment upfront and a lesser share of long-term production revenue, or a smaller payment upfront in exchange for a bigger chunk of the revenue. Each model offers advantages and disadvantages for the landowner.

“On the one hand, the landowner gets greater certainty with a bigger payment upfront, since there are no guarantees for what will happen to the company,” said Earle. “The flip side of that is that if you plan to hold on to your property – which a lot of farmers do – you could gain more from long-term payments.”

Who removes the towers?

Putting in wind turbines is a lot of work, but taking them out is an even bigger pain in the neck, and is also extremely expensive. When negotiating lease agreements with developers, landowners need to make sure they don’t end up with the responsibility of removing the towers, Earle said.

“The worst-case scenario is that a developer comes in, starts putting in towers and then goes bankrupt,” sticking the landowners with the bill for decommissioning the towers, he said.

Deal with the company

The competition for the choicest properties is fierce and, as a result, landowners might be approached by middlemen trying to make a little money on the margin. Dealing with middlemen makes it more difficult for landowners to control and evaluate the terms of the contract.

“To the extent that you have to work with a middleman, make sure the lease is open for renegotiation, should the project go to (a different developer),” Earle advised.

Negotiate as a group

To avoid ending up in a bidding war with the competition, wind farm developers often demand confidentiality from the landowners they approach. But landowners will have more leverage on the issues that concern them if they deal with the developer as a group, according to Earle.

“In matter of strategy, it makes a lot of sense (to form a group). It helps make sure that one landowner doesn’t wind up with a better deal than another one,” he said. It also makes it easier for landowners to pool resources if they need to hire a lawyer or other professional help.