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How to Make Money on Your Land

Updated: Nov 2

How to Make Money on Your Land

You have likely heard of mineral owners receiving large royalty checks for leasing their mineral rights to oil & gas companies, but not all land is favorable for oil & gas drilling. Even if there is no oil and gas under your land, there are many other opportunities for you to make money from your property. The natural resources on your land hold value and can provide you with the opportunity to earn passive income through different lease opportunities. LandGate can help you to understand the various ways you can make money on your land by showing you exactly what each natural resource on your land is worth in our free Property Report.

Oil & Gas Mineral Rights

If your land is located in an area that is proven to have oil and gas, you have the ability to lease your mineral rights to drilling companies and receive a cash bonus just for signing the lease. The bonus is typically paid to you on a per-acre basis. So, the more land you have, the higher the potential for a larger bonus. When you list your mineral rights for lease on LandGate's open marketplace, your mineral rights are marketed to multiple oil & gas companies, which can help you negotiate the highest possible bonus. In an oil & gas lease, you will also collect a royalty. A royalty is a percentage of the proceeds from the sale of production that is paid to the landowner either monthly or quarterly, depending on the specific lease agreement. Therefore, if the operator successfully drills a well on your land that produces oil & gas, you will receive an additional royalty check. You can learn more about oil & gas royalties.

Wind Leasing

A wind farm lease is an agreement between a wind developer and a landowner that grants the wind developer the right to construct wind turbines on their land. Leasing your land for wind turbines can provide a steady and predictable income, all while allowing your property to continue to appreciate in value. Wind lease payment terms vary depending on where your land is located and on the wind company itself. Similar to leasing mineral rights, a company wanting to build a wind farm on your property may pay you a cash bonus when you sign a wind lease. Then, you may receive a quarterly or annual payment based on the number of turbines installed, and/or an additional royalty payment based on the megawatts of electricity generated from your property. On average, a smaller single wind turbine lease could be valued at around $8,000/year with a larger turbine bringing between $50,000 to $80,000/year. You can learn more about typical wind lease payment structures!

Solar Leasing

Leasing your land to a solar developer for the installation of solar panels can also provide a steady and predictable income to landowners while the property continues to appreciate in value. There are many state and federal tax credits and incentives that motivate companies to invest in leasing land for solar energy and to construct new solar farms. Solar farm lease payments typically range from $400 - $2,000 per acre per year. The average length of a solar lease is 25 years. The size and location of your property, and the energy demand in your area play a big role in what you could be paid for a solar lease. You can find more information about solar lease payments. There are generally 4 phases in the solar farm process:

  1. Everything starts with the Development/ Planning Phase, which lasts from 2-5 years.

  2. If the project is approved, then the Construction Phase will begin, which should last 2-4 months.

  3. When the solar panels are actively generating electricity, this is called the Operations Phase, which could last 25-50 years.

  4. At the end of the Operations Phase (unless it is extended by the solar company), the Decommission Phase will begin. In this phase, they will remove the solar panels and supporting structures before restoring your property to its original condition.

Carbon Credits

Another opportunity that landowners have to earn income from their property is through selling carbon credits. A carbon credit is tradable commodity that represents one metric ton of carbon dioxide that has been removed from the atmosphere. Companies that put a lot of carbon dioxide into the atmosphere (for example, airlines) can purchase carbon credits from landowners to offset their carbon footprint. You can find out how much carbon your land is sequestering by identifying your parcel on our map and generating your free property report. This is calculated by an in-depth analysis of the soil and tree types on your land.

Water Rights

Water rights are extremely valuable, but their actual value depends on a lot of variables. You need first to understand a few facts and terms about water rights. Did you inherit a property with a Center Pivot? Is your land located near a lot of oil and gas drilling rigs? Location is important. Let us help you market your water rights for lease and learn more about owning water rights. LandGate has a one-of-a -kind valuation tool to assist you in learning what each resource on your property is worth. When you generate your free Property report on, we will provide you with free lease estimates for each natural resource on your land, along with the opportunity to make a free listing. Our inventory of buyers acknowledges that our valuation tool means that they have to pay landowners more - don't miss out on the opportunity to lease your land for the best possible value!


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