Why Bill Gates Is Buying Up U.S. Farmland

Bill Gates made headlines for turning into the most important personal farmland proprietor within the U.S. But he’s not the one one. Some of the wealthiest landowners together with Jeff Bezos, John Malone and Thomas Peterffy are shopping for up forests, ranches and farmlands throughout the United States. Why? Watch the video to search out out.

Investments in farmland are rising throughout the nation as individuals, together with the ultra-wealthy like Bill Gates, search for new methods to develop their cash.

In 2020, Gates made headlines for turning into the most important personal farmland proprietor within the U.S. He had collected greater than 269,000 acres of farmland throughout 18 states in lower than a decade. His farmland grows onions, carrots and even the potatoes which are used to make McDonald’s French fries.

“It’s an asset with increasing value,” American Farmland Trust CEO John Piotti mentioned. “It has great intrinsic value and beyond that, it is a limited resource.”

The U.S. Department of Agriculture estimates that 30% of all farmland is owned by landlords who don’t farm themselves. Buyers typically buy land from farmers who’ve owned it for many years; a lot of whom could also be asset wealthy however possibly money poor.

“The economic realities for them are typical that they’ve spent their life farming,” mentioned Holly Rippon-Butler, land marketing campaign director on the National Young Farmers Coalition. “Their retirement, their equity is all in the land and tied up in selling land.”

Private landowners are additionally making a revenue by using the land in quite a few methods. Approximately 39% of the 911 million acres of farmland throughout the U.S. is rented out to farmers, and 80% of that rented farmland is owned by landlords who don’t farm themselves information from the Agriculture Department reveals.

“The young farmers are just as happy to lease the land because whether you are young or old, it’s a business, right?” mentioned Thomas Petterfy, chairman of Interactive Brokers and proprietor of 581,000 acres.

“You go buy a farm and you put that cash rental lease in place, you’re going to be looking at about 2.5% return on your capital,” Peoples Company President Steve Bruere mentioned.

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Why Bill Gates Is Buying Up U.S. Farmland

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