Billionaire Stan Kroenke has become America’s largest private landowner, owning 2.7 million acres, including a recent 937,000-acre ranch purchase, the largest in the U.S. in over a decade. He jumped from fourth to first place in a wealth ranking largely due to this real estate acquisition. Kroenke’s wealth is rooted in developing shopping centers and connections to Wal-Mart through his marriage to heiress Ann Walton Kroenke.
The rise of agricultural land as an asset class has attracted many ultra-rich investors, seeking to hedge against inflation and economic volatility. With U.S. farmland values increasing, investment in this sector has grown among the wealthy as a strategy for wealth protection. Farmland has historically been positively correlated with inflation, making it a desirable investment.
However, this trend makes it difficult for active farmers to compete for land against wealthy individuals like Kroenke. Many farmers are forced to rent rather than buy, as purchase prices continue to climb. The increasing interest in farmland underscores a shift in investment strategies, with many viewing it as a stable, tangible asset amidst economic uncertainty.
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