Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Big-Money Investors Like Bill Gates, Jeff Bezos, Show Growing Appetite for 'Safe Asset'

Big-Money Investors Like Bill Gates, Jeff Bezos, Show Growing Appetite for 'Safe Asset'

Bill Gates, who co-founded Microsoft, the world's largest personal computer software company, hit headlines in 2020 after becoming the largest private farmland owner in the US. Other billionaires have been similarly embracing this tax-efficient and generally “safe” investment.

America’s ultra-wealthy are increasingly investing in acres of farmland as they branch out in the search for new investments.

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

People like business magnate Bill Gates, Hungarian-born American billionaire Thomas Peterffy have been on a land acquisition spree.

In 2020, tech billionaire Bill Gates became the largest private farmland owner in the US, accumulating more than 269,000 acres. Purchases were made with the help of the Washington-based firm Cascade Investment and a number of shell companies. His farmland, spanning nearly 20 states, is used to cultivate vegetables such as carrots, soybeans, and potatoes, according to the agriculture outlet The Land Report.

Bill Gates, Co-Chair of Bill & Melinda Gates Foundation, attends the World Economic Forum (WEF) annual meeting in Davos, Switzerland, January 22, 2019.


His largest holdings are in Louisiana (69,071 acres), Arkansas (47,927 acres) and Nebraska (20,588 acres).

The US Department of Agriculture estimates that about 30 percent of US farmland is rented out by owners who serve as landlords and aren’t involved in farming, like Gates. Purchases are often made from farmers who have owned the land for decades and while asset rich, may be cash poor.

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

Profits are made from utilising the land in numerous ways. Around 39 percent of the 911 million acres of farmland across the US is rented out to farmers, according to data from the Agriculture Department.

In this photo taken Dec. 19, 2008, chickens are seen on a farm near Vacaville, Calif.


The majority - 80 percent - of that rented farmland is owned by non-operator landlords, who do not farm themselves. “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 said.


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

Peterffy’s estimated net worth on Forbes magazine's 2021 list of The World's Billionaires is US$25 billion dollars, ranking him as the 65th richest man in the world. He is also the owner of 581,000 acres.

Fellow multi-billionaires Jeff Bezos and Stewart Resnick are similarly choosing to diversify their personal portfolios by investing in land. Amazon CEO Bezos is in 25th spot, according to The Land Report’s list of top private farmland owners, possessing 420,000 acres, mainly in west Texas.

Wonderful Company co-founders Stewart and Lynda Resnick ranked number three, with 190,000 acres.
American billionaire businessman and philanthropist Resnick bought his first farmland in California in 1978 as a hedge against inflation, in his first step towards building an agricultural empire.

“It’s a good investment… It’s smart, it’s stable, and especially over the past couple decades, it seems to be going up,” said Johnathan Hladik, a farmer and the policy director for the Center on Rural Affairs.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
×