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If you want to hedge your bets against inflation, all you have to do is buy bitcoin, gold, or 100 acres of hayfields in Nebraska.
The amount of farmland bought by investment firms has jumped 231% from 2008 to the middle of last year, according to the National Council of Real Estate Investment Fiduciaries. Investors owned $16.6 billion worth of farmland at the end of 2023, up $9.2 billion from 2020.
- Aside from being relatively unaffected by inflation, farmland is a solid investment: The world will need to produce 60% more food by 2050, according to UN estimates.
- The value of farmland increased from $2,700 per acre in 2010 to $5,460 in 2023, according to the USDA.
As the average age of farmers goes up, experts worry it’ll be harder for the industry to attract young people to the field (literally), especially now that they’re competing with deep-pocketed investors.
Bipartisan concern over who owns the strawberry patch
US politicians are mad about investors buying up farmland, but they are even madder at the foreign investors doing it. Members of Congress and at least 36 state lawmakers have introduced bills over the last year that would limit or ban non-US citizens or people from certain countries (mostly Iran, Russia, China, and North Korea) from buying farmland.
- Chinese billionaire Chen Tianqiao is the second-biggest foreign owner of US land—though less than 1% of foreign-owned land in the US is owned by Chinese interests, per the USDA.
- Canadian investors take the cake, owning 31% of foreign-held US land, which comes out to just under 1% of total US agricultural land.
Looking ahead…industry experts estimate that investment firms still only control about 1% to 3% of the market. But the speed at which these groups are snapping up land—and driving up prices—is what has lawmakers nervous, and that’s why restrictions could be part of a farm bill that’s expected to pass at some point in the next year.—MM
FAQs
Investors owned $16.6 billion worth of farmland at the end of 2023, up $9.2 billion from 2020. Aside from being relatively unaffected by inflation, farmland is a solid investment: The world will need to produce 60% more food by 2050, according to UN estimates.
Why are billionaires buying farmland? ›
Several of the world's wealthiest are purchasing farmland as part of their investment strategies. But billionaires acquiring agricultural property isn't a trend. It's a strategic move for investors to enhance and diversify their portfolios.
Who is buying up the farmland? ›
Outside ownership of US cropland is drawing attention from Washington as concern rises about possible threats to food supply chains and other national security risks.
Why is Michael Burry buying farmland? ›
Burry has focused on acquiring agricultural land with adequate water sources. "I believe that agricultural land — productive agricultural land with water on site — will be very valuable in the future. I've put a good amount of money into that," Burry said.
Why is Bill Gates investing in farmland? ›
He responded, “I own less than 1/4000 of the farmland in the US. I have invested in these farms to make them more productive and create more jobs. There isn't some grand scheme involved - in fact, all these decisions are made by a professional investment team.”
How much farmland did Jeff Bezos buy? ›
Jeff Bezos, your friendly founder of Amazon, recently purchased 400,000 acres of farmland in Texas. Other real estate billionaires have bought thousands of acres in Indiana, Illinois, Iowa and Florida according to Hansen Land Brokers, Inc.
Why are investors buying farmland? ›
Aside from being relatively unaffected by inflation, farmland is a solid investment: The world will need to produce 60% more food by 2050, according to UN estimates. The value of farmland increased from $2,700 per acre in 2010 to $5,460 in 2023, according to the USDA.
How much US soil does China own? ›
According to a 2021 report by the Department of Agriculture, China owns 384,000 acres of American agricultural land; ownership which jumped by 30% from 2019 to 2020.
Who owns the most farmland in USA? ›
The Land Report 100 research team analyzes transactions and scours records to determine America's leading landowners. That's how we broke the news in 2020 that Microsoft co-founder Bill Gates was America's largest farmland owner with more than 260,000 acres.
How much land does China own in the US map? ›
Foreign entities own a total of 40 million acres of U.S. farmland and China has bought up nearly 347,000 acres, according to the U.S. Department of Agriculture (USDA).
The exact number of properties Buffett currently holds is not disclosed. It is known that he owns at least 400 acres of residential and agricultural properties, which are rented out to his son 3.
Why are NFL players buying farmland? ›
Why did Joe Burrow and other athletes buy farming land. The group bought the land to then lease it to farmers who work it and gives the athletes a single-digit percentage annual return to their investment, a move that was presented by Patricof Co.
Is farmland a better investment than the stock market? ›
Treasury bond yields averaged 1.52% in 2021, compared to farmland's return of 7.8%. Low stock market correlation: Farmland has demonstrated a low correlation with bond (-0.24) and equities markets (-0.06) over the last three decades, meaning farmland investments may not be significantly impacted by market trends.
What stock is Bill Gates buying? ›
Bill Gates Portfolio: 7 Best Stocks to Buy Now
| STOCK | % OF PORTFOLIO | MARKET VALUE OF SHARES |
|---|
| Berkshire Hathaway Inc. (BRK.B) | 15.9% | $7.3 billion |
| Canadian National Railway Co. (CNI) | 15.8% | $7.2 billion |
| Caterpillar Inc. (CAT) | 5.9% | $2.7 billion |
| Deere & Co. (DE) | 3.2% | $1.5 billion |
3 more rowsMay 22, 2024
Over the past six years, billionaire Bill Gates has spent more than $113 million purchasing Nebraska farmland and has taken out two loans totaling $700 million against it. Gates owns about 20,000 acres of farmland in Nebraska, where longtime friend and fellow billionaire Warren Buffett resides.
How many acres does Bill Gates own in Arkansas? ›
Gates and his wife Melinda own a total of 268,984 acres of land, most of which includes the farmland, along with 25,750 acres of transitional land and 1,234 acres of recreational land. Part of that land is in Arkansas. The Gates family owns 47,927 acres in Arkansas, according to the Land Report.
Why are rich people buying so much land? ›
As the world's population continues to grow, food security is becoming an increasing concern. With this in mind, many billionaires are looking to invest in farmland. Land suitable for farming is a finite resource that is becoming scarcer as more land is being used for other purposes.
Why is Amazon buying farmland? ›
With ownership comes Amazon's ability to better develop and run its logistics facilities in regions such as Southern California, where community movements to ban or limit warehouse development near neighborhoods have taken root, Bridge's Jones said.
Who owns more farmland, Jeff Bezos or Bill Gates? ›
In 2020 Bill Gates will officially be the largest private farmland owner in the United States. He accumulated over 269,000 acres of land. Almost 300,000 acres is a lot of land for one family or private individual to own, but it's still just a small part of the estimated 911 million acres of farmland in the US.
Why is farmland so valuable? ›
Due to its substantial variety of crops, regulatory nuances, soil productivities, growing climates, topographies and water districts, regionalized markets are formed. The Farm Income Boom. Since 2010, California had experienced a notable upswing in farmland values.
