Almost a third of the land in the United States has long been owned by non-farmers – in particular, billionaire Bill Gates is among the largest landowners. Why land attracts investors and how to invest in it, says Alexey Potapov (UFG Wealth Management)
Real assets, including farmland, throughout the history of mankind have been natural objects for capital investment. Even the Roman politician Cicero Mark Tullius said: “The earth never returns without a surplus what it has received.” This means that owning land contributes to the growth of wealth. In our time, agricultural land (farmland) or land intended for the cultivation of timber (timberland), often turned out to be deprived of the attention of investors. However, in recent years the situation has changed quite rapidly.
Farmer Bill
In early 2021, the media actively discussed the purchase of agricultural land by Microsoft co-founder billionaire Bill Gates. The purchase itself took place back in 2018: Gates purchased 14,500 acres of land for $171 million in The Horse Heaven Hills, Washington, a place known for its wines and potatoes, as well as wind farms. According to the Land Report, the total area of land that the billionaire now owns in one way or another is almost 300,000 acres, making him the largest private landowner in the United States.
But Bill Gates is not alone: according to the US Department of Agriculture, regarding 30% of agricultural land in the country is owned by non-farmers. Among the owners there are both private individuals (directly or through controlled companies) like Gates, and institutional investors – not only real estate investment funds (REITs), but also various pension funds.
