Why The Wealthy Are Investing In Agriculture
The key reason why the wealthy are investing so much in agriculture now is that it’s produced a steady return for Americans almost since the beginning of this nation. In some cases, the wealthy are investing in agriculture, while in others, people are becoming wealthy because of agriculture.
What was a $500,000 investment 30 years ago is now a three million dollar piece of property. The generational farmer is finally seeing a good return.
The wealthy that are buying in now is also seeing good returns. It’s why Bill Gates has purchased over 242 thousand acres of land. He knows if he builds it, they will come. For Bill Gates, “they” are dollar signs.
As explained in this Perpetual Dividends piece, farmland also serves as a hedge against inflation. Food is a standard cost of living, and inflation is also a standard component of living. With the increase of inflation, we see automatic inflation in food costs, that’s what inflation is.
Farmland is the producer and supplier of that chain. Those that are investing in the land that puts the food on the tables of America are hedging against the costs of inflation by serving as the first link in the food chain. That’s why the wealthy are investing in agriculture. It’s a win-win.