"Not Sharing Core Values" Bill Gates' Purchase of 'Millions of Pyeong' Farmland Sparks Resident Complaints

North Dakota Law Prohibits Corporate Ownership of Farmland Except for Certain Exceptions

Microsoft (MS) founder Bill Gates
[Photo by Yonhap News]

[Asia Economy Reporter Kang Woo-seok] An investment company related to Microsoft (MS) founder Bill Gates is causing controversy by purchasing large-scale farmland in North Dakota.

Recently, the Associated Press reported that Red River Trust bought 2,100 acres (about 2.57 million pyeong) of farmland from a potato farmer in North Dakota last November for $13.5 million (approximately 17.5 billion KRW).

According to AgWeek, an agricultural trade publication that first reported the deal, Red River Trust shares the same address as the company established to manage Bill Gates' personal assets.

However, under North Dakota state law, except for some exceptions, corporations or limited liability companies are prohibited from owning or leasing farmland or pastureland. Ownership is only exceptionally allowed for corporations if the land is needed for residential or commercial purposes such as buildings, factories, facilities, or industrial complexes.

This law was enacted in 1932 to protect family farms.

In response, Drew Wrigley, Attorney General of North Dakota, recently sent a letter to Red River Trust and the seller inquiring about the intended use of the farmland. Attorney General Wrigley stated that it is standard procedure to question corporations upon recognizing farmland transactions, adding, "If the state law is complied with, the sale will proceed; if illegal, they will be notified to dispose of the land."

Although it has not yet been determined whether the transaction is illegal, many residents are reportedly expressing negative opinions.

Doug Goehring, the state's Agriculture Commissioner, told local media that many residents believe that ultra-wealthy individuals buy land but do not share the state's values and exploit the residents.

He said, "I hear complaints not only from the neighborhood where the farmland is located but throughout the state. While some are upset, there are also people who are angry."

Meanwhile, according to last year's report by Land Report 100, which ranks the top 100 landowners in the United States, Bill Gates owns a total of 268,984 acres (about 329 million pyeong) across several states, making him the largest farmland owner in the U.S.