From Successful Farming:
Investment in farmland by high-profile billionaire buyers such as Bill Gates and Warren Buffett has prompted high-net-worth groups, most recently top professional athletes, to follow the trend to diversify their investment portfolio and hedge against inflation, experts say.
In January, about 25 athletes pooled $5 million in an agricultural investment fund to purchase farmland. The first purchase was a 104-acre corn and soybean farm in northern Iowa, Front Office Sports reported. The athletes, including the NFL’s Joe Burrow and NBA star Blake Griffin, plan to least the land to farmers and expect a single-digit-percentage annual return on the total investment.
The group seeks to buy four more farms within the next few years. New York-based Patricof, which arranged the investment for the athletes, didn’t respond to questions about the price paid for the land or future purchases. The investment firm’s website says it has “begun investing in farmland across the Corn Belt, the Pacific Northwest, and northern Minnesota. The farms have high soil quality, strong crop yield, and grow row crops, which are planted annually, minimizing risk. Farmland has historically provided stable annual income, and a solid hedge against inflation.”