America’s farmland is disappearing from the hands of small farmers as more and more land is hoarded by the super-rich.
Recently, the largest news agency in the United States Associated Press reported that Bill Gates recently received approval from the local department of North Dakota to acquire 2,100 acres of local farmland at a price of US$13.5 million, equivalent to approximately RMB 90.48 million. Yuan.
One acre in the United States is equivalent to 6.07 acres in China, and 2,100 acres is approximately equal to 12,747 acres. The land purchased by Bill Gates is equivalent to only 7,098 yuan per acre. This price is really a reasonable price, because after some domestic land is demolished and acquired, the price per acre is almost more than 100,000 yuan. From this point of view, the price of farmland in China is far higher than that in the United States.
However, one characteristic of China is that private individuals are not allowed to buy or sell farmland unless it is occupied due to special circumstances. If a wealthy person wants to own farmland on a large scale like Bill Gates, they can only lease it and have the right to use it for a certain period of time.
What is the concept of the 12,747 acres of farmland purchased by Bill Gates this time?
Its area is approximately equal to 8.5 square kilometers, which is about the same size as an administrative village with a population of 5,000 in my country. For ordinary people, this area is already quite large, but for Bill Gates, this land is just one of his many farmlands.
According to statistics, Bill Gates has purchased farmland in 19 states in the United States, with a total area of 270,000 acres, which is approximately equal to 1.64 million acres and 1,100 square kilometers in my country. Coincidentally, the area of Hong Kong, China is 1106 square kilometers, which is very similar.
Just imagine, what does it feel like for a person to own such a large area of land in Hong Kong?
Bill Gates currently owns 1% of the farmland in the United States. This is a scary statistic. Assuming that 100 Bill Gates-level super-rich people come to buy farmland in the United States, this means that all farmland in the United States It flows into the hands of the super rich, and what the people want to eat depends on what these rich people want to grow.
According to statistics from professional organizations, Bill Gates is the person who owns the largest farmland area in the United States and has become the largest landowner in the United States.
Assuming this happened in my country, how would netizens react?
will definitely accuse capitalists of being too greedy, right? Because if all the farmland flows into the hands of the rich, ordinary people will encounter great difficulties in their lives.
In the same way, Bill Gates’s large-scale purchase of farmland in the United States has also been opposed by American farmers, because the entry of the super rich may cause greater environmental pollution and damage, further widening the gap between rich and poor.
Obviously, Bill Gates still encountered some problems in the process of buying farmland, but it did not affect his final purchase of farmland.
According to data from the United States Department of Agriculture, currently 2/3 of the farmland in the United States is in the hands of farmers, and another 1/3 is owned by investors. Therefore, in addition to Bill Gates, other wealthy people are also hoarding land, including Bezos, the founder of Amazon, and John Malone, the godfather of American cable TV. The land area they hold is larger than that of Bill Gates. There were more, but they bought a lot of forests and other land.
So here’s the question, isn’t farming a thankless job? Why are the rich investing one after another? Are they afraid of something happening?
First, farming is profitable . For domestic farmers, it is difficult to make money. The most fundamental reason is that our farming area is too small. Many families farm no more than 10 acres of land. Assuming that one acre of land can earn a net income of 100 yuan per year, the income from 10 acres of land is only 1,000 yuan, which is far less than the income earned from part-time work. But what if we can plant 10,000 acres of land at the same time? You can also make millions of dollars a year.
Secondly, food is the most important thing for the people, and having a certain amount of farmland can ensure a stable supply of food.The rich have a lot of money, but when emergencies occur, it is much better to have enough food than the numbers on the account.
Third, diversify investment . The super-rich have hundreds of billions of dollars, and they need to diversify their wealth into investments. The benefits of doing this are very obvious, and can protect against the risks of black swan to the greatest extent. Even if other assets disappear, as long as these assets exist, your descendants can have enough food and clothing.
Fourth, there are many profit models for farmland . The super-rich do not farm the farmland themselves after purchasing it. They just regard the farmland as a strategic investment. They will rent these farmlands to farmers who want to farm. In this way, the rich will officially become the landlords in ancient my country, and they only need to collect rent every year.
In addition to direct farming, farmland can also be transformed into a place for leisure and health care, which can earn profits from commercial operations. Some can even change the use of land and become a source of land for real estate, and the value of the land can immediately increase a hundred times.
If you had money, would you hoard land?
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