Why does Bill Gates own so much farmland?

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r00tb33r
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15 Oct 2022, 11:30 pm

naturalplastic wrote:
The supply of land stays the same.

That's mostly true. Floating cities have been an idea for some time. Also, we will be at the peak of the ice age cycle eventually, with all the ice melted. There will be less accessible land surface.


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stratozyck
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16 Oct 2022, 7:38 am

naturalplastic wrote:
^
This.

The supply of land stays the same. But demand for it goes steadily up.


And what do you think happens over the long run when this plays out over centuries?

Answer: lower class revolt.

China in 1250 was richer per person than in 1850. They were internally stable and had no foreign invaders in this time period.

What happened was the rich kept hoarding the land and the growing peasant population got smaller and smaller plots.

By the time Mao came around, his forces came into villages and shot the landowners. They would then turn to the peasants who were near starvation anyways and say, "join me or they will come back and shoot you."

We actually have plenty of land, but what landowners also do is put heavy regulation on the usage of the land to keep prices high.



beady
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16 Oct 2022, 8:07 am

Probably planning to grow weed - most profitable crop.



beady
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16 Oct 2022, 8:12 am

CockneyRebel wrote:
Because he has more money than he knows what to do with. At least the money that he used to buy the land didn't go into Planned Parenthood.



He did that as well!

https://www.gatesfoundation.org/ideas/m ... tion991013

Thank you gates foundation!! !



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16 Oct 2022, 11:06 am

naturalplastic wrote:
^
This.

The supply of land stays the same. But demand for it goes steadily up.

I bought my land around thirty years ago, paid $18,000 for twenty acres ,mostly wooded ,and an unfinished house.
Twenty acres and a crap shack are now going for around $300,000. 8O


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16 Oct 2022, 7:31 pm

beady wrote:
CockneyRebel wrote:
Because he has more money than he knows what to do with. At least the money that he used to buy the land didn't go into Planned Parenthood.



He did that as well!

https://www.gatesfoundation.org/ideas/m ... tion991013

Thank you gates foundation!! !


They dug into the data and got proof that giving women control over their reproductive systems improves the economic circumstances and cultural conditions of a society. When not overwhelmed trying to feed kids they didn’t intend to have, women tend to be huge economic drivers and positive forces to keep a community organized, comfortable and safe. Funny how much good birth control pills can do.


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17 Oct 2022, 12:17 am

DW_a_mom wrote:
beady wrote:
CockneyRebel wrote:
Because he has more money than he knows what to do with. At least the money that he used to buy the land didn't go into Planned Parenthood.



He did that as well!

https://www.gatesfoundation.org/ideas/m ... tion991013

Thank you gates foundation!! !


They dug into the data and got proof that giving women control over their reproductive systems improves the economic circumstances and cultural conditions of a society. When not overwhelmed trying to feed kids they didn’t intend to have, women tend to be huge economic drivers and positive forces to keep a community organized, comfortable and safe. Funny how much good birth control pills can do.


Well said.
Add to this the fact that so many people in our world, and in our county are living without adequate housing, food, education, or healthcare. How bout if we solve that first?



stratozyck
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17 Oct 2022, 10:28 am

DW_a_mom wrote:
Your tax analysis fails to account for the interest tracing rule. Business and investment interest is not deducted based on what you took the loan out on, but based on how you used the funds. Now, it is true that most investors will leverage the existing rental properties to buy new rental properties, thus keeping the interest expense deductible as rental expense, albeit now officially attached to a different property.

The biggest benefit comes from the ability to complete tax free exchanges and then step the basis up for free when you die.

The piece is the most unfair, IMHO, is when a taxpayer has enjoyed the benefits of depreciation deductions all the years the property was appreciating, and that ends never being recaptured or taxed in any way because of the free step up at death.

Taxes are what I do.


The deduction doesn't matter. What matters is the ability to take out a personal loan backed by the asset. You can borrow against personal assets and pay zero taxes on what you take out.

This is the equivalent of taking out a home equity loan on your mortgage.

The operating income roughly equals borrowing expense used to fund the capital purchase, as you mentioned. The asset is owned by a rich individual who takes out a personal loan against it.

The assets sole purpose is to grow faster than the interest rate of the personal loan.

Its easier for a bank to put a 1st or 2nd lien on property and ensure that its only used as collateral once for a loan than it is for stock equities.

Banks cant legally invest in properties they have to make loans as assets so this is their way of getting safe cash flow from real estate.