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Re: Wind turbines on ranches [Re: TTT Ranch] #6960460 11/14/17 11:22 PM
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I have talked to three other folks that have leases in three different parts of Texas (two that I quail hunt on) and we all average about the same depending on what KW are going for. One has 22 turbines and it was the same deal, told him 10K to 12K a year and really gets between $5.5K and $7K a year per turbine. That revenue sticks with the land as well if you sale the property, not like minerals where you can typically keep a healthy percentage. Those other three had wheat fields or mesquite scrub country so they didnt get devalued that much, so their break even is less than 10 years on property value drop.

Re: Wind turbines on ranches [Re: danceswithquail] #6960704 11/15/17 02:46 AM
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Originally Posted By: danceswithquail
I have talked to three other folks that have leases in three different parts of Texas (two that I quail hunt on) and we all average about the same depending on what KW are going for. One has 22 turbines and it was the same deal, told him 10K to 12K a year and really gets between $5.5K and $7K a year per turbine. That revenue sticks with the land as well if you sale the property, not like minerals where you can typically keep a healthy percentage. Those other three had wheat fields or mesquite scrub country so they didnt get devalued that much, so their break even is less than 10 years on property value drop.


Oh I’m familiar with turbines,


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Re: Wind turbines on ranches [Re: bp3] #6970012 11/23/17 02:22 AM
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Originally Posted By: bp3
Oil and gas wells deplete in a year


Funny I have two that have produced since 1984.
There are wells around all over Texas that have produced since the 50s.

Re: Wind turbines on ranches [Re: danceswithquail] #6970202 11/23/17 07:17 AM
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DocHorton Offline
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Originally Posted By: danceswithquail
I have talked to three other folks that have leases in three different parts of Texas (two that I quail hunt on) and we all average about the same depending on what KW are going for. One has 22 turbines and it was the same deal, told him 10K to 12K a year and really gets between $5.5K and $7K a year per turbine. That revenue sticks with the land as well if you sale the property, not like minerals where you can typically keep a healthy percentage. Those other three had wheat fields or mesquite scrub country so they didnt get devalued that much, so their break even is less than 10 years on property value drop.


22 turbines at $6k a year each is $132k a year in income. I would think that level of passive income would make the property more valuable. If an investor was looking at a 10% return it would make the property worth $1.32 million not counting any land value. 10 year break even seems a little off unless it dropped the value by $1.5 Million which seems hard to believe.

I'll admit I don't know anything about how the process would work....Am I missing something?

Re: Wind turbines on ranches [Re: TTT Ranch] #6970382 11/23/17 03:56 PM
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Don't forget about the declining value of the dollar. $7000/yr. will be worth about $3500/yr in 10 years time and $1750/yr in 20 years time.


Re: Wind turbines on ranches [Re: postoak] #6970552 11/23/17 07:55 PM
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Originally Posted By: postoak
Don't forget about the declining value of the dollar. $7000/yr. will be worth about $3500/yr in 10 years time and $1750/yr in 20 years time.


Inflation is not a consideration when determining ROI as the initial invested dollars undergo the exact same devaluation over time.....and inflation is only 2-3% per year.

Re: Wind turbines on ranches [Re: TTT Ranch] #6970625 11/23/17 10:20 PM
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The windmill people put a clause in the contract that increases the payout every 5 years.

Re: Wind turbines on ranches [Re: DocHorton] #6970723 11/24/17 12:02 AM
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Originally Posted By: DocHorton
Originally Posted By: postoak
Don't forget about the declining value of the dollar. $7000/yr. will be worth about $3500/yr in 10 years time and $1750/yr in 20 years time.


Inflation is not a consideration when determining ROI as the initial invested dollars undergo the exact same devaluation over time.....and inflation is only 2-3% per year.


But there are no invested dollars (on the part of the landowner) are there? I am just pointing out that if X seems like a nice figure NOW, it won't seem so much 10 or 20 years from now, in terms of purchasing power.

But apparently there is some inflation adjustment built in.


Re: Wind turbines on ranches [Re: danceswithquail] #6971003 11/24/17 05:00 AM
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Originally Posted By: danceswithquail
I have talked to three other folks that have leases in three different parts of Texas (two that I quail hunt on) and we all average about the same depending on what KW are going for. One has 22 turbines and it was the same deal, told him 10K to 12K a year and really gets between $5.5K and $7K a year per turbine. That revenue sticks with the land as well if you sale the property, not like minerals where you can typically keep a healthy percentage. Those other three had wheat fields or mesquite scrub country so they didnt get devalued that much, so their break even is less than 10 years on property value drop.


I know four people that have sold their property and kept the "wind rights". And yes that has held up in court.
So the revenue from the windmills now rarely goes with the land but is held separate just like minerals.
I find the idea that one can hold rights on the wind but they can.

Re: Wind turbines on ranches [Re: TTT Ranch] #6971563 11/25/17 01:26 AM
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Where would a person look to find a property with active windmill payouts or leases?

After the lifespan or term is expired does the company take them down?

Re: Wind turbines on ranches [Re: postoak] #6971566 11/25/17 01:29 AM
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Originally Posted By: postoak
Originally Posted By: DocHorton
Originally Posted By: postoak
Don't forget about the declining value of the dollar. $7000/yr. will be worth about $3500/yr in 10 years time and $1750/yr in 20 years time.


Inflation is not a consideration when determining ROI as the initial invested dollars undergo the exact same devaluation over time.....and inflation is only 2-3% per year.


But there are no invested dollars (on the part of the landowner) are there? I am just pointing out that if X seems like a nice figure NOW, it won't seem so much 10 or 20 years from now, in terms of purchasing power.

But apparently there is some inflation adjustment built in.


I’m just considering the fact the landowner paid X for their property. I’m not sure how it works but interested because it seems like it could be a viable investment opportunity, but I agree the purchasing power of the generated revenue will decrease over time.

Re: Wind turbines on ranches [Re: TTT Ranch] #6989863 12/09/17 08:26 PM
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Most folks who have turbines on their land are long term ranching families. I have dealt with some that are the original homesteading family. I rarely see land with turbines that are for sale. Plus, most places with wind turbines are large properties.

There is a decommissioning plan for each wind farm. It usually has to be filed with the county with a bond to cover costs if the wind farm operator is not around in 30 years.

Re: Wind turbines on ranches [Re: postoak] #6990234 12/10/17 02:29 AM
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Originally Posted By: postoak
Originally Posted By: DocHorton
Originally Posted By: postoak
Don't forget about the declining value of the dollar. $7000/yr. will be worth about $3500/yr in 10 years time and $1750/yr in 20 years time.


Inflation is not a consideration when determining ROI as the initial invested dollars undergo the exact same devaluation over time.....and inflation is only 2-3% per year.


But there are no invested dollars (on the part of the landowner) are there? I am just pointing out that if X seems like a nice figure NOW, it won't seem so much 10 or 20 years from now, in terms of purchasing power.

But apparently there is some inflation adjustment built in.


Technically there is because you are taking Land out of production, livestock or Farm
I’m going to be hard pressed to make 7k+ per acre on corn, wheat, cattle, especially when corn has half the buying power today as it did in 1960.

At 300 bushels an acre corns going to have to Net almost $23 a bushel, ya if that happens we got bigger problems


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Re: Wind turbines on ranches [Re: DocHorton] #6990238 12/10/17 02:32 AM
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Originally Posted By: DocHorton
Where would a person look to find a property with active windmill payouts or leases?

After the lifespan or term is expired does the company take them down?


The biggest farm going in currently is the Panhandle. Good luck it’s a gold mine for use.


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Re: Wind turbines on ranches [Re: BOBO the Clown] #6990374 12/10/17 05:02 AM
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Originally Posted By: BOBO the Clown
Originally Posted By: DocHorton
Where would a person look to find a property with active windmill payouts or leases?

After the lifespan or term is expired does the company take them down?


The biggest farm going in currently is the Panhandle. Good luck it’s a gold mine for use.


Thanks for the info. Sounds like they don't come for sale often.....and that's a long ways from home. grin

Re: Wind turbines on ranches [Re: DocHorton] #6990504 12/10/17 02:08 PM
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Originally Posted By: DocHorton
Originally Posted By: BOBO the Clown
Originally Posted By: DocHorton
Where would a person look to find a property with active windmill payouts or leases?

After the lifespan or term is expired does the company take them down?


The biggest farm going in currently is the Panhandle. Good luck it’s a gold mine for use.


Thanks for the info. Sounds like they don't come for sale often.....and that's a long ways from home. grin


Ya, you can find some CRP/pasture stuff every now and then. Crop land is expensive. I’m in the process of doing a Land swap on 80 acres for substation/offices. I can tell you wind leases have not caused a decrease in land prices up there.

Same distance for me wink


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