Full Breakdown
Solar Lease Transforms a Texas Family Farm
By Drooid · · How we work
Background and Context
Steve Cargil has farmed the flat, dry land surrounding Uvalde, Texas, since 1953. After a devastating hailstorm in 2018 destroyed his cabbage and onion crops, Cargil faced the prospect of ending the family farm, as none of his three children wanted to farm full-time. In 2001 he signed a lease for 600 acres—about a quarter of his total land—to OCI Energy, which built a large solar farm on the site. Texas, long the nation’s largest oil producer, recently overtook California as the leading generator of electricity from solar farms, and in March of last year solar output in the state exceeded coal for the first time, according to the U.S. Energy Information Administration.
Financial Impact
The OCI Energy lease pays Cargil roughly $200,000 (£150,000) annually. The steady income has allowed him to keep the remaining cultivated acreage operational despite a prolonged drought, concentrate his water-irrigation allowance on the land he still farms, and reduce financial stress from rising diesel and fertilizer costs.
Official Statements & Responses
Cargil describes the lease as a “blessing” that has secured his retirement and preserved the farm for future generations. He notes that the solar project has insulated his operation from volatile commodity prices and enabled him to focus resources on the portion of the farm he continues to grow.