| Hi Taylor:
I just read that Bill Gates owns more farmland than anyone else
in the U.S. Is that true? What does a tech billionaire want farms
for? - Chad
Hi Chad: Yes, the article you read speaks the truth. In fact,
if you look at lots of millionaire and billionaire investors, you'll
see that they're buying up farmland as fast as they can. None of them
are going to touch the soil they buy, but they understand the value
of the asset.
resource. There are over 900 million acres of farmland in
our country, which sounds like a lot until you think of all the
things we grow, mouths we feed, and global trading we do. Around
40% of that land is rented to those who do the actual planting
and harvesting, so being a farmland landlord is a pretty common
gig. As food standards and environmental regulations change, more
and more people are looking to update and upgrade farming practices,
which makes any farmland that's for sale even more appealing.
2. Need to sell. When we think of farmers, we usually picture
people who have all their wealth tied up in assets. They don't
live lavishly, they just work the land and make money on what
they're able to cultivate. Most private farms have been in families
for generations, with the understanding that the value of the
business is the land itself. When farming becomes problematic-due
to health or economics-the easiest solution is to sell at least
a portion of the land and move on to something else. The value
of the land combined with the owner's need for cash means a good
farmland investment is usually lurking, you just have to be ready
to jump on it when the time is right.
3. Should you invest? I'm a big proponent of farmland investing
and there are a good number of ways to go about it without being
a billionaire. Sites like AcreTrader.com allow you to invest in
the land and product without buying a farm outright, so you can
reap the rewards without landing yourself in a mess of red tape.
If you want to actually get your hands dirty, you can find a way
to rent farmland and grow your crops without owning, if that's
what suits you. Whatever your goals, there's a lot of money to
be made in American farms. As long as people need to eat, that's
going to remain the case.
| You won't get
any advice on planting crops from people like Bill Gates, but his
investments are worth keeping an eye on. And, with this particular
investment, it's one even us non-billionaires can make.
© Taylor Kovar
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Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
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