Can't drag materials on objects

In the tutorial Rick just draged a material on the windmills # and the material applied. But that doesn’t seem to work in my case. When I drag the material over the cursor just blinks and when I release the button nothing happens. Why is that?

OK so I have fixed it. The problem was that I had the Terrain in the same object as the props. When I moved the terrain out of the object everything worked fine.

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