Erickson Farms case study PDF

New AgWind Case Study: Erickson Farms

Erickson Farms case study PDFThe latest AgWind case study showcases how a Nebraskan farm owner was able to leverage distributed wind to cut energy costs and strengthen farm resilience.

Erickson Farms, a grain operation located near Funk, Nebraska, took a bold step toward sustainable energy and cost control in April 2024 when owner Erick Erickson commissioned a Bergey Excel 15 wind turbine. Installed on a 100-foot tilt-up tower, the 15 kW turbine is a visible symbol of the farm’s commitment to energy independence and financial resiliency.

Facing electricity costs on the rise, Erickson leveraged federal and USDA incentives to make distributed wind a reality for his business. The turbine’s expected output of 30,000 kWh annually covers most of the farm’s essential power use, but the system has already exceeded projections—generating 38,000 kWh in its first 15 months. With retail net metering available through Southern Public Power District and the local electricity rate near 12 cents per kWh, Erickson’s realized energy savings have topped $4,000 per year, putting the project far ahead of its payback schedule.

The financial pathway for the installation is notable: Erickson paid $109,500 upfront but was able to access a 50% USDA REAP grant and a 40% federal tax credit. Accelerated depreciation under Section 179 further reduced the net out-of-pocket cost to well under $11,000—transforming an ambitious investment into a remarkably fast return.

Maintenance costs average $400 each year. The turbine’s strong results offer more than just a financial win. The project demonstrates that wind energy can be a practical, replicable solution for agricultural businesses grappling with volatile energy markets, and sets an example for neighboring ag producers in rural Nebraska. Erickson’s experience highlights the transformative impact of well-structured incentive programs and showcases how DW can empower farmers to control their future energy costs.

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