I haven't been able to figure this one out.....?? WHY? What type of farm do you think he's talking about? Plenty of affordable farmland here in Michigan.
Engr. Rana Hamza Shakil thank you for the repost ??
It would come down to liquid assets I would imagine. Now in that example they are talking about net worth which could include all kinds of stuff but let's say someone has $10 million in liquid assets so cash basically, then farm land is always a good investment, but not for the return on the farm activities. Here's why, if you have $10 million in cash today and inflation runs at 5% over the next 15 years. In 15 years time your $10 million will only be worth around $4.8 million in todays money. Whereas farm land is highly resistant to inflation, so in the same scenario the investor would expect to get at the very least a little over $20 million for the same land he or she paid $10 million for. Now inflation will never run at a consistent 5% or a consistent anything so these numbers are never gonna be real, but it shows the thinking behind the investment, cash will depreciate land will not. They are not trying to make a return through farming, they are trying to protect their hard earned wealth. Hope that makes sense.
His point is to have a home base outside the city to visit and work from… he operates a small organic farm in Virginia that his brother runs. The philosophy is to stay grounded in hard work, have multiple properties, and grow your own food.
I saw this tweet last year. My thoughts were this was at the stages when people’s eyes were being opened to how bad the food system is and how reliant we are on grocery stores. Remember a couple years ago when people grabbed all the poultry out of panic ? It put a light on how fickle our society is. If you own a farm, you and your family are not reliant on the system. Also, it takes some capital to sustain (hence the net worth statement). Bill Gates owns almost 250,000 acres of farm land. There are several benefits financially as well
I would say in the UK buying land if not a farm would be a good move especially in the wake of what is happening here. If we want to secure food security as well as prevent big corporations owning the majority of land it appears clear to me. Forget your 2nd home or holiday home buy land or a farm to protect the future. I say this and I don`t even have children yet it will be imperative for the future. Land certainly here is going to increase in value whatever type of land that is. There are also green incentives one could possibly take. Obviously you would need to have a clear plan.
This is the guy that’s broke now?
ag land is taxed at a much lower rate -- at least in my state -- than other property. There is only so much land on the planet, once you own it and/or use it, you can't just get more of it which is why it is a great option for hedging money from inflation. Those are just 2 reasons I can think of without deep diving. Another would be subsidies to not produce.
A quick research gave me the answer, by Tai himself in this 28 sec video he made: https://www.youtube.com/watch?v=sMAt3Q9FbdA
Garry VonMyhr thank you for the repost ??