You either put it really far away (increasing transmission losses and right of way issues for the much longer lines), or you put it closer and then have to deal with expensive land or difficult environmental reviews.
It is not AS BIG of an issue as it could be - for instance 30% efficient cells vs 23% efficient cells, the lower efficiency’s cost vs space usually favors the lower efficiency, but it’s still very strong overall.
Plants generally max out the amount of solar radiation they can absorb early in the day, so are not handicapped at all by partial shade. In fact, most benefit from it in numerous ways.
Installed between rows in active farmland, solar reduces water demand by up to 50%, which is a really huge benefit. Reducing heat and evaporation stress improves crop yields. So, a farm could move from barely getting by to solidly profitable by installing solar, even before selling the power. The panels just need to be placed so as not to interfere with driving a tractor between them.
So, no, there is absolutely no shortage of land for solar installations.
Racking and wiring is one of the dominant costs in any solar installation, and a big flat desert is cheaper both to install and maintain than almost every other option by a pretty hefty margin.
Maybe the solar cost efficiency taken alone is reduced, but the system efficiency of the real estate use goes up as does the ownership value for the property owner.