Friday, January 15, 2021

Bill Gates Is Now America’s Biggest Owner Of Farmland

 As noted in the introduction to January 4's Real Assets: "2021 Farmland Outlook: Buckle Up for a Dynamic Market":

I hate this. 

There is a real risk that the giant pools of money that circle the globe will land in some of the smaller markets. And though we bear no ill-will toward our hedge and PE brethren (cough-scum-cough) if they land on agricultural commodities they have a direct impact on the average person's existence.

Let them play with gold and bitcoin and other stuff people don't need rather than corn, rice, beans and wheat.

The major ag commodities are up one to three percent to start the new year....

From Forbes, January 14:

Bill Gates, the fourth richest person in the world and a self-described nerd who is known for his early programming skills rather than his love of the outdoors, has been quietly snatching up 242,000 acres of farmland across the U.S. — enough to make him the top private farmland owner in America.

After years of reports that he was purchasing agricultural land in places like Florida and Washington, The Land Report revealed that Gates, who has a net worth of nearly $121 billion according to Forbes, has built up a massive farmland portfolio spanning 18 states. His largest holdings are in Louisiana (69,071 acres), Arkansas (47,927 acres) and Nebraska (20,588 acres). Additionally, he has a stake in 25,750 acres of transitional land on the west side of Phoenix, Arizona, which is being developed as a new suburb.

According to The Land Report’s research, the land is held directly and through third-party entities by Cascade Investments, Gates’ personal investment vehicle. Cascade’s other investments include food-safety company Ecolab, used-car retailer Vroom and Canadian National Railway. 

While it may be surprising that a tech billionaire would also be the biggest farmland owner in the country, this is not Gates’ only foray into agriculture. In 2008, the Bill and Melinda Gates Foundation announced $306 million in grants to promote high-yield, sustainable agriculture among smallholder farmers in sub-Saharan Africa and South Asia. The foundation has further invested in the development and proliferation of “super crops” resistant to climate change and higher-yield dairy cows. Last year, the organization announced Gates Ag One, a nonprofit to advance those efforts.

It is not entirely clear how Gates’  farmland is being used, or whether any of the land is being set aside for conservation. (Cascade did not return Forbes’ request for comment.)....