For this workshop, we heard from two new solar graziers who jumped right into large-scale solar grazing: Reid Redden (Premier Solar Sheep – TX) and Greg Gunthorp (Gunthorp Farms – IN). Reid and Greg come from two distinct regions and run very different operations. They were able to cover how they were able to keep their enterprises viable and efficient, and what unique challenges and benefits they faced in their experiences. 

Greg and Reid covered the importance of business planning for solar grazing and why it is essential for successful utility-scale solar grazing operations due to significant capital requirements and operational complexities. Utility-scale grazing requires a large upfront capital for sheep acquisition, mowing equipment, and infrastructure. Additionally, solar grazing combines traditional livestock management with specialized vegetation management services, and both strategies need to be considered when planning. Variations in climate, vegetation, and seasonal considerations also play a role in business planning.

Comprehensive business planning includes capital costs, operating expenses, revenue projections, equipment depreciation, contingency planning, and scaling strategy. Capital costs involve mowing equipment, handling systems, fencing, transportation, and sheep acquisition. Meanwhile, operating expenses include labor, repairs, fuel, animal health supplies, and winter feed. Revenue projections consider contracts and livestock sales, while equipment depreciation planning accounts for wear on mowers and other equipment due to intensive use. Business planning requires a scaling strategy for how to expand from an initial site to multiple or larger locations. Finally, there is a need for a contingency plan in case of unexpected costs, weather events, and market fluctuations.

Next, Greg and Reid covered specific characteristics that help determine who will succeed in large-scale grazing. These characteristics involve a business acumen, team approach, and being comfortable with adaptability. Additionally, those with an agricultural background with sheep production and livestock management are at an advantage. An understanding of capital access and conservative budgeting will be beneficial to those who choose to graze on a larger scale.

Greg and Reid come from very different regions, and they were able to discuss how regional differences impact business models. In the Midwestern region where Greg is from, winter feeding strategies are often needed. These can include stockpiled forage or an arrangement with neighboring farms. Conversely, in the Southern regions, like where Reid is from, there are challenges with rapid vegetation growth during wet periods and drought management. When considering regional differences, graziers should also consider site characteristics, market access, and seasonal variations.

Most utility-scale operations require a hybrid approach to vegetation management, necessitating the need for a balance between sheep and mechanical management. Greg and Reid emphasized using sheep as the primary management with mowing as backup for compliance. Vegetation types and growth patterns should be assessed before bidding on contracts, and stocking rates should be closely monitored.

Financial planning must account for predictable and unexpected cost patterns. These expenses include initial investment, equipment replacement, labor, winter costs, client relations, and the expansion phase.

Despite significant challenges, utility-scale solar grazing offers compelling advantages. Solar contracts cover operating expenses while lamb sales generate additional revenue and provide graziers the ability to expand sheep operations without purchasing additional land. There is also the potential to grow operations significantly faster than traditional sheep farming as solar development expands across regions. Solar grazing is a complementary enterprise, allowing graziers to integrate their existing farm operations with diversified revenue streams.

Greg and Reid offered recommendations for successful large-scale grazing business planning. Graziers should overestimate costs rather than underestimate when planning, and should place base bids around conventional mowing costs. Additionally, graziers can plan their production stages with natural forage cycles to reduce feed costs. Greg and Reid emphasized the need for collaboration, and encouraged early engagement with solar developers to influence site preparation and seeding.

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This workshop was a follow up to our May workshop, Business Planning for Solar Grazing: Getting Started.

Past recordings on large-scale solar grazing in California, Texas, and the Northeast:

• Solar Grazing for Fire Mitigation and Prevention with Ryan Indart (ASGA Call 83)
• Jumping into Large-Scale Grazing in TX and the Southeast with Chad Raines
• Large-Site Solar Grazing in CA and TX, What Graziers Need to Know (Panel Discussion) – March 2023
• Planning Large-Scale Grazing with Jonathan Barter and Troy Bishopp