Scott Aaronson Of Demeter Land Development On How Farmers And Agricultural Workers Diversify Their Income Streams
An Interview With Martita Mestey
False! Most projects we develop these days incorporate agrivoltatics, or agricultural activities under the panels. It is not uncommon to see sheep or turkeys grazing under the panels or other agricultural activities.
In today’s rapidly changing world, economic resilience is crucial. For farmers and agricultural workers, diversifying their income sources can be a key strategy in achieving financial stability and success. By exploring alternative and supplementary revenue streams, these individuals can better adapt to market fluctuations, climate change, and other challenges. As part of this series, we had the pleasure of interviewing Scott Aaronson.
Scott Aaronson is an attorney and CEO of Demeter Land Development. As an attorney, Scott works with landowners to negotiate land leases for renewable energy projects. With Demeter, Scott executes early-stage development for renewable energy projects.
Thank you so much for joining us in this interview series! Before we dig in, our readers would like to get to know you a bit more. Can you tell us a bit about your “backstory”? What led you to this particular career path?
I grew up in the Detroit metro area and started my legal career at 24 as a criminal defense attorney. It was 2010, and there weren’t a lot of law firms hiring recent law school grads, so I set up my own shingle and started taking cases. Criminal defense was the only thing I knew how to do, due to some internships at the public defender’s office I also started to invest in real estate in the Detroit area on the side. I became good friends with one of my tenants, who was an attorney landman for a renewable energy developer. A few years later, knowing my interest in real estate and my law background, he asked me to come work under him, helping a developer lease land in Illinois for Community Solar. About a year after that, we got into an argument where he said “This is not your land department, if you want to run a land department, start your own business, but you can’t do it here”.
I then did just that, founding Demeter Land Development
Today we are 12 strong and partner with a majority of the largest renewable energy independent power producers in the United States, negotiating lease agreements and other early-stage development tasks. Over time I also realized that there weren’t a lot of lawyers who were well versed in renewable energy land leases. That’s why I, in addition to Demeter, now run a law firm () that focuses on providing legal counsel to landowners.
Can you share the most interesting story that happened to you since you began this fascinating career?
The best part of my job has always been meeting the landowners. As my company grows, I don’t get to do it as much as I like, but I can’t think of a better way to spend my day than to drive around meeting with folks in rural America. It’s hard to pick one story because I’ve met hundreds of interesting people over the years.
You are a successful leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
Empathy, Delegation, and Adaptability
Empathy: My business is primarily a people business. Everything we do is based on the relationships we build. Whether it is meeting with the local government about a new project or meeting with a farmer who is trying to figure out legacy plans for his centennial farm, understanding how people feel is crucial to being successful.
Ability to Delegate: When I started my business, it was just me driving around the country and meeting with landowners. It is nearly impossible to grow your business when you are spending all of your time working on it. Without the ability to delegate tasks your business becomes a job instead of a business.
Adaptability: In any business, the ability to adapt is crucial. This is especially true in my business. There are a lot of moving parts in developing renewable energy. When things change you need to be able to change with it.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
“In the middle of difficulty lies opportunity” — Albert Einstein. Nothing worth doing in life is easy, including the renewable energy business. Where we add the most value is in the difficult things.
Can you share something about your work that makes you most proud? Is there a particular story or incident that you found most uplifting?
The timeline of a renewable energy project can take a few years. For the first few years, despite a ton of work, I had nothing to show for all of our work. I have since started to see several of my renewable energy projects actually get built, including some that were contested by neighbors. There isn’t a better feeling than driving by a completed project and knowing that my team was instrumental in building it. I also am proud when I talk to a landowner and hear about the positive things that happened as a result of them being involved.
Ok super. Let’s now shift to the main part of our discussion about ‘How Farmers And Agricultural Workers Diversify Their Income Streams’. This might be intuitive to you but it will be helpful to expressly spell this out. Can you share with our readers why this has become a necessity?
Farming is and always has been one of the toughest businesses there is! If you can succeed at farming you can succeed at anything. Today, corn, soy, and wheat are at a 5-year low due to an increase in supply, while the costs of farming have significantly increased. Pesticides, herbicides, and fertilizer costs have nearly doubled since 2020 due to higher natural gas prices and inflation. Labor costs and land costs have increased significantly as well. Higher costs and lower revenues are squeezing the margins of an already tight business model. Add on the higher costs of borrowing money and you have a potential disaster. Centennial farmers are worried about losing their farms and the next generation is less interested in farming than the previous generation.
What are the most common barriers that farmers and agricultural workers face when trying to diversify their income streams?
For renewables, your land has to have the right characteristics in order for projects to be successful. For distribution projects, your land needs to sit on 3-phase power, close to a substation. It also needs to be in the right service territory of a utility company that participates in some sort of program that requires them to buy the power (often this means it must be in an investor-owned utility, not a co-op). It must be free of wetlands, and floodplains, and lack significant topographical challenges. Even with all of these prerequisites fulfilled, it’s possible there could be a technical challenge that could prevent a project from being built.
How have government policies and regulations impacted the ability of farmers and agricultural workers to diversify their income? Are there any specific policies or programs that support or hinder this process?
There have been several federal and state-level incentives that have made it easier for farmers to lease their land for solar. The Inflation Reduction Act has been crucial. There have also been state-level community solar initiatives and other legislation that have been crucial.
Unfortunately, there have also been hindrances. There has been a small but growing faction of NIMBYs (Not In My Back Yard) pushing to prevent renewable energy projects from being developed by creating more restrictive zoning laws. In some areas, renewable energy has been politicized with false information spread around.
How can farmers and agricultural workers access information, resources, and support to help them explore and implement new income streams?
For renewable energy, the best thing they can do is reach out to speak with developers. If they are interested in leasing their land, and they have a developer interested in leasing it, they should speak with an attorney who can help advise them of their rights.
How have cooperatives, partnerships, or collaborations played a role in helping farmers and agricultural workers diversify their income? Can you share any examples?
One of the most direct ways is by leasing their land to solar developers. This partnership allows farmers to generate long-term recession-proof income without having to give up the ownership of land.
How can sustainable practices and the increasing focus on environmental conservation create new opportunities for farmers and agricultural workers to diversify their income streams?
Solar is all about sustainability and environmental conservation. Generating power has historically been an incredibly dirty business. The average coal plant produces 3.5 million tons of CO2 annually along with thousands of tons of sulfur dioxide, particulate matter, and coal ash. The average natural gas plant emits 1.3 million tons of CO2 annually. Solar produces no CO2 and has a material lifespan that can last decades. It’s nice when something environmentally friendly can also be profitable!
How do you foresee the role of creative land use like solar gardens in the future of agriculture, and what opportunities might these present for farmers and agricultural workers to diversify their income streams?
With technological advancements like AI and EV charging, electricity use is only going up. As we strengthen our grid, the need for localized power is becoming more necessary. This gives the farmer a significant opportunity to lease their land for solar.
Based on your experience and research, can you please share your “5 Myths to Debunk About Solar for Farmers”?
- The myth that solar panels and projects are toxic / have toxic chemicals.
Some folks are concerned about toxicity in the solar equipment, and when I sit in local permitting meetings, I often hear citizens talking about their concerns about what the panels are made of, and what happens if the panels break. These concerns stem from biased reports from old polycrystalline panels that were used on very early projects. Today the industry standard is to use monocrystalline silicon solar panels. These panels are made from non-toxic silicone, silver and steel. They have a strong, anti-shatter glass on the top of them, so even if the panels do break, they remain in one piece. Also most projects we work on use a native seed mix under the panels with no chemical treatments. This means less chance of runoff from the normal pesticides and herbicides used in traditional farming.
2. The myth that solar fields are taking away prime farmland and food from our tables.
As any farmer will tell you, farming has already been an integral part of the energy process. In America, approximately 30% of farmland is corn (about 90 million acres). Approximately 40% of that corn is used for ethanol, which is used among other things in fuel. A gallon of fuel that is 10% ethanol (the standard) takes approximately 7–8 pounds of corn. That means every time I fill up my tank, I am using 120 pounds of corn. Many projects now also employ agrivoltaics, which means that there is allowed to be some farming activities under the panels. Now farms can stay farms, while also producing cleaner and more efficient electricity.
3. The Myth that the local community doesn’t benefit from DG solar.
In addition to the jobs created by the creation of the project, DG localized solar has a ton of regional benefits. Before DG projects, all power on the lines came from non local power plants. This means that a problem sometimes hundreds of miles away could cause an outage in your local community. Localizing power production can significantly decrease the chance of power outages. When DG projects are installed the local utility also often requires the developer to pay for significant line upgrades to handle the increased power on the lines. This also helps with infrastructure support.
4. The myth that solar is bad for the environment.
Sometimes in local government meetings, I hear people talk about how they believe that solar and other renewable energy sources are actually bad for the environment. They believe that because solar panels require stringent manufacturing techniques and a significant amount of panels which they believe will end up in landfills, it isn’t really green. This couldn’t be further from the truth. While recycling panels and equipment is a newer industry and extremely important in the sustainability of green projects, even without recycling, renewable energy is by far the cleanest option for energy production.
Coal plants for instance produce around 1 ton of coal ash waste per MW of power output PER DAY. That is in addition to the 1 ton of carbon dioxide emissions per MW, hundreds of gallons of water, along staggering amounts of sulfur dioxide, nitrogen oxides, mercury, and other nasty stuff. If the average coal plant produces 500 MW, you can times those numbers by 500, per day! Natural gas facilities are significantly better than coal, but still absolutely awful for the environment. Natural gas facilities produce about 500 metric tons of CO2 per MW per year along with smaller amounts of nitrogen oxides. There are also significant concerns regarding methane emissions from leakages. It is estimated that 1–3% of total production is leaked. Nuclear power produces very little emissions but produces radioactive waste. They also have significant risks (think Chornobyl) and require evacuation plans of 50 to 100 miles should something go wrong. This is why in the last 30 years, only two new reactors have been activated.
Now compare the above to solar. Solar produces no byproducts and has zero emissions. The panels last for 25 years and are 80–90% recyclable. Solar is a clear winner!
5. The myth that you cannot farm under solar panels.
False! Most projects we develop these days incorporate agrivoltatics, or agricultural activities under the panels. It is not uncommon to see sheep or turkeys grazing under the panels or other agricultural activities.
Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why? He or she might just see this, especially if we tag them. 🙂
Warren Buffett, the Oracle of Omaha! One of the most successful investors of all time, yet he still manages to be humble and down to earth.
How can our readers further follow your work online?
You are welcome to follow us at Demeter Land or Land Lease Lawyers.
This was very meaningful, thank you so much, and we wish you only continued success.
About the Interviewer: Martita Mestey is a thought leader in the sustainable agriculture and AgTech space, dedicated to revolutionizing the industry and creating a more equitable and sustainable food system. As the founder of FarmdOut, Martita is passionate about utilizing advanced technology and time-tested research to address the ecological challenges facing farmers today. With a focus on mapping all the farms in the US and Puerto Rico using satellite imagery, computer vision, sensor tech, and GIS, FarmdOut provides comprehensive information for farmers to make data-driven decisions about their crops, optimize land use, and improve sustainability. Martita is also a champion for farmer well-being, working to address burnout and promote resilience in the industry. She is dedicated to preparing the next generation of farmers for success, emphasizing the importance of diversity, innovation, and sustainable practices. Martita’s mission is to share her knowledge and expertise through the interview series, inspiring and encouraging others to join the movement towards a healthier and more sustainable food system.
Scott Aaronson Of Demeter Land Development On How Farmers And Agricultural Workers Diversify Their… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.