Farm Income Pressure Puts Renewable Energy Diversification Back in Focus

Onshore wind could provide a long-term income stream alongside agricultural production as financial pressures continue across the agricultural sector, says renewable energy specialist Caeli.

Hans-Georg von Lewinski, Managing Director at Caeli. Image Credit: Caeli

Latest Defra forecasts show average farm business income is expected to fall in 2025/26 across most farm types in England, highlighting the continued volatility facing agricultural businesses.

Cereal farms are forecast to see average farm business income fall by two thirds to £17,000, while general cropping farms are forecast to see income halve to £54,000 and income for mixed farms dropping by a third. Defra attributes the changes to factors including lower crop output and reductions to the delinked Basic Payment.

Against this backdrop, Caeli says farmers and landowners are increasingly looking at how diversified income streams can strengthen the long-term resilience of their businesses.

Onshore wind is one option that has returned to the agenda following the removal of England's de facto planning ban in July 2024.

The Government subsequently published its Onshore Wind Taskforce Strategy, setting out plans to unlock 27–29 GW of onshore wind capacity across Great Britain by 2030.

Hans-Georg von Lewinski, Managing Director at Caeli UK, says the changing policy environment gives farmers an opportunity to reassess land which may have previously been overlooked for renewable energy development.

"Onshore wind is a particularly interesting option because energy generation and agricultural production do not necessarily need to be mutually exclusive. Turbines and associated infrastructure occupy part of a site, but farming can generally continue across much of the surrounding land."

"That gives us an opportunity to think differently about how land contributes to both food and energy security."

The Government's Land Use Framework for England has similarly placed greater emphasis on multifunctional land use, including maintaining food production while meeting requirements for clean energy, nature, housing and infrastructure.

Caeli cautions, however, that not every farm will offer a viable wind opportunity.

Wind resource, grid access, planning constraints, environmental considerations, access and the existing agricultural use of the site all need to be considered before a potential development can progress.

Mr von Lewinski adds: "The starting point for landowners should be understanding their options, rather than making an immediate decision about development."

"The policy landscape for onshore wind in England has changed considerably. Farmers who understand the potential of their land now will be in a stronger position to decide whether renewable energy has a place within the future of their business."

Caeli provides a free Site Check for UK landowners to assess the initial onshore wind potential of their land before any commitment is made.

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