It’s not what I would call common, but people do it.
As small agriculture consolidates and goes out of business, some wacky rich guys buy farms and turn them in legacy tree farms.
I grew up and went to school in a rural area of NY, one of my old friends maintains properties like this for clients as a side gig for his farm work. The area was selected to benefit from climate change.
In one case, just in terms of black walnut trees, when mature in 50-60 years, there is the equivalent of $10-12M (at todays prices) worth of timber for the owner’s descendants. The trust structure saves cash on taxes as well.
> For those with time and patience, a living legacy of walnut trees can be a priceless gift for children and grandchildren. According to professional timberland investors, the average return from a stand of walnut trees is 14 percent a year, with no taxes due until harvest. That beats returns on bonds, stocks and most other investments handily, and with intercropping, growers can even produce an income while the walnut trees continue to grow.
Yes, and if you’re rich, there are many ways that you can leverage tax incentives and trusts to create perpetually tax free investments. Unfortunately, US tax law is creating a new feudal aristocracy, with food production shifting to latifundia like models, and the aristocrats wielding tax exempt dynastic wealth.
Even for normal people, some of these properties, especially defunct dairy farms are tragically cheap and not too polluted. My dad bought one for hunting and fishing purposes when he retired and made a modest income by leasing the land for hay. Not much, but enough to pay the taxes.
As small agriculture consolidates and goes out of business, some wacky rich guys buy farms and turn them in legacy tree farms.
I grew up and went to school in a rural area of NY, one of my old friends maintains properties like this for clients as a side gig for his farm work. The area was selected to benefit from climate change.
In one case, just in terms of black walnut trees, when mature in 50-60 years, there is the equivalent of $10-12M (at todays prices) worth of timber for the owner’s descendants. The trust structure saves cash on taxes as well.