The sun sets as wind turbines generate electricity July 20, 2022, near Montezuma in rural Poweshiek County, Iowa.
Jim Slosiarek/The Gazette
Iowa proudly ranks second in the nation for wind energy generation, with wind turbines accounting for 64% of the state’s electrical output. Wind development has become a vital engine for rural economic growth.
Howard County, with a population of just under 9,400, limited commercial development and an economy dependent on agriculture, saw its first wind farm in 2008. Today, it hosts 147 wind turbines with a total capacity of 244 megawatts — enough to power about 50,000 homes.
Turbines have a total taxable valuation of just over $115 million. This past year alone, they generated $2.7 million in tax revenue, or 14.5% of the county’s total tax budget. Two additional wind projects are in development, which will add another 230 megawatts.
On May 18, new property tax legislation (SF 2472) was signed into law, limiting growth in county and city general levies to about 2% per year. With inflation for materials and labor continuing above that rate, Iowa counties face difficult budget choices. Expanding the tax base through wind development offers a practical solution.
Before the wind projects, budget constraints forced Howard County to abandon several roads and bridges. The county could replace only one or two bridges per year, and rural gravel roads suffered from deferred maintenance.
To turn things around, Howard County used tax increment financing, using future property tax growth from the turbines to fund infrastructure bonds. Since 2010, TIF has helped the county replace more than 30 additional bridges, pave 20 miles of road and purchase critical maintenance equipment. Road maintenance agreements with developers meant wind companies covered the costs of upgrading local gravel roads during construction, saving taxpayer dollars.
TIF funds have also funded recreation improvements at the Bonair Shooting Range, Lake Hendricks and the Prairie Farmer Recreational Trail.
Local schools benefit as well. Turbines not placed in TIF enter the standard tax roll, boosting the property value of local taxing districts. Districts leverage this higher valuation to reduce general levy rates for residents. Riceville schools boast one of the lowest tax rates in Iowa.
Wind energy is a lifeline for family farmers navigating volatile commodity prices and high input costs. With current market forecasts sitting below break-even prices for corn and soybeans, the steady income from wind lease agreements offers invaluable financial stability. Landowners receive annual turbine payments ranging from $15,000 to $25,000, and compensation for access roads.
Howard County’s experience shows what renewable energy can achieve. As state policies tighten local budgets, wind energy remains a proven tool to strengthen infrastructure, support schools and keep family farms resilient.
Paul Lovell is executive director of the Howard County Energy District and renewable energy siting program manager of the Clean Energy Districts of Iowa.