Oct 86 min read

How Self-Directed IRAs Can Help Small Investors Reclaim Farmland from Corporate Control and Address the U.S. Housing Shortage

As the U.S. grapples with a severe housing shortage and rising concerns about corporate dominance in farmland ownership, many investors are realizing the power of Self-Directed IRAs (SDIRAs) to solve two pressing problems at once: reclaiming farmland from large corporations and directing investment into real estate to address housing needs.

In recent decades, farmland ownership has increasingly fallen under the control of large corporations and institutional investors like BlackRock and Bill Gates, raising concerns about monopolization and the economic sustainability of small farmers. Meanwhile, there is an ongoing housing crisis with a shortfall of over 3.8 million units, making housing unaffordable for many Americans. But through SDIRAs, everyday investors—particularly Realtors and smaller investors—have a unique opportunity to reverse these trends by directing their retirement savings into farmland and real estate.

Bob Waun, co-founder of DIRT Realty, has long been an outspoken proponent of empowering small investors to reclaim control of land from corporations and channel investment into real estate solutions. “Large institutional investors have been buying up vast amounts of farmland and real estate for years,” Waun says. “But it’s time for small investors to get back in the game, and self-directed IRAs provide the perfect vehicle to do it. Realtors especially should be using their SDIRAs to invest in land and real estate, not funneling their retirement savings into Wall Street.”

The Rise of Corporate Farmland Ownership

Over the last two decades, large institutional investors and mega-billionaires have quietly acquired vast amounts of U.S. farmland. According to the U.S. Department of Agriculture (USDA), over 40% of U.S. farmland is rented or owned by entities that are not local, small-scale farmers. Corporate control has reached such levels that Bill Gates, the co-founder of Microsoft, is now the largest private owner of farmland in the U.S., with holdings of nearly 270,000 acres.

This concentration of land ownership has raised concerns about food security, sustainability, and the economic independence of small farmers. Large corporations often prioritize profit margins over the stewardship of land, while small, locally-owned farms focus on sustainability, community impact, and preserving rural economies. The trend of corporate consolidation threatens to further marginalize small-scale farmers and cut off access to affordable land for future generations of farmers.

But what if this land could be purchased by small investors, farmers, and real estate professionals instead?

How Self-Directed IRAs Can Help Small Investors Reclaim Farmland

Through the use of SDIRAs, everyday investors have the power to take back control of farmland from corporate giants. A self-directed IRA gives individuals the flexibility to invest in a wide range of assets, including farmland, rental properties, and even undeveloped land. With providers like uDirect IRA offering simple solutions for rolling over traditional IRAs into self-directed accounts, investors can begin purchasing real estate assets, including farmland, within their retirement portfolios.

By pooling resources from self-directed IRAs, small investors can collectively buy land that would otherwise be snapped up by corporations. This not only provides a tangible, income-generating asset for the investor but also helps return land to local ownership. Investors can lease the land to local farmers or cultivate it themselves, creating a sustainable income stream while supporting small-scale agriculture.

“Self-directed IRAs give power back to small investors,” says Waun. “Instead of letting large corporations control our food supply and land resources, we can put ownership back into the hands of local farmers, communities, and everyday investors. This is where the real value lies—not in stocks and bonds, but in the land that sustains us.”

The Financial Impact: What Could $15 Billion in Investment Achieve?

If more small investors, particularly the nation’s 1.5 million Realtors, were to redirect their retirement savings into farmland through self-directed IRAs, the economic impact could be profound. As outlined in earlier discussions, if each Realtor invested just $10,000 into real estate or farmland through their SDIRA, it would generate a staggering $15 billionin new capital available for investment.

Here’s what that level of investment could accomplish:

Reclaiming Farmland: With an average cost of $3,160 per acre of farmland, $15 billion could purchase nearly 5 million acres of farmland. That’s a huge chunk of land that could be reclaimed from corporate ownership and returned to local farmers or managed by small investors for agricultural use.
Housing Development: In addition to farmland, this investment could also address the housing crisis by funding the construction of 100,000 new affordable housing units, helping to reduce the housing shortage and provide more affordable housing options for American families.
Support for Small Farmers: By owning farmland and leasing it to small-scale farmers, investors could help preserve the rural economy and ensure that farmland remains productive and sustainable.

“Imagine the power of $15 billion being used to buy back farmland from large corporations,” Waun explains. “This would not only provide a way to support small farmers, but it would also give investors a tangible, appreciating asset that generates steady income. It’s a win for the economy, for small communities, and for the investors themselves.”

The Tax Advantages of Using SDIRAs for Farmland

Another key advantage of using SDIRAs for farmland investment is the tax benefits. Like traditional IRAs, self-directed IRAs allow for tax-deferred or tax-free growth, depending on whether the account is structured as a traditional or Roth IRA. This means that income generated from leasing farmland, selling crops, or even selling the land itself can be reinvested into the IRA without being subject to immediate taxation. Over time, this allows for compound growth of retirement savings while still providing an income stream from the farmland.

In addition, the 2024 U.S. Farm Bill includes tax incentives aimed at promoting sustainable farming practices, land conservation, and renewable energy production on farmland. Investors using SDIRAs to purchase farmland may also benefit from these tax credits and deductions, further enhancing the value of their investment.

“Farmland is not only an appreciating asset, but it’s also one of the best ways to protect against inflation,” says Waun. “With the tax advantages offered by SDIRAs and new incentives in the Farm Bill, investing in land through a self-directed IRA has never been easier—or more profitable.”

Why Realtors Should Lead the Way

As real estate professionals with a deep understanding of property values, Realtors are in a unique position to lead the charge in reclaiming farmland from corporate ownership and directing new investments into housing solutions. Realtors already have the expertise needed to identify undervalued land and housing opportunities, and by utilizing SDIRAs, they can expand their retirement portfolios with investments that align with their professional knowledge.

Waun believes that Realtors should not only be investing their own money into farmland and real estate through SDIRAs but also encouraging their clients to do the same. By promoting SDIRAs as a flexible investment tool, Realtors can unlock new streams of capital for both farmland and housing investments, all while helping their clients build sustainable wealth.

“Realtors are on the front lines of the housing and land markets,” Waun says. “If more Realtors used SDIRAs to invest in farmland and real estate, we could drive billions of dollars in new investment, address the housing shortage, and take back control of our country’s farmland from corporate giants.”

The Path Forward: Investing in Farmland to Build Wealth and Preserve Land

As more small investors turn to self-directed IRAs to diversify their retirement portfolios, the opportunity to reclaim farmland and address the U.S. housing shortage becomes more tangible. Farmland offers a unique combination of financial benefits—steady income, tax advantages, and long-term appreciation—while also providing a socially impactful way to support local farmers and communities.

The $15 billion potential from Realtors alone shows how powerful SDIRAs can be as a tool for driving change in the real estate market. By investing in farmland, real estate professionals and small investors can build sustainable wealth while helping to solve two of the most pressing issues facing the U.S. today: the housing shortage and corporate control of farmland.

“Investing in land is about more than just making money,” Waun concludes. “It’s about preserving our communities, supporting small farmers, and taking control of our financial futures. With self-directed IRAs, we have the tools to make that happen, and it’s time more people took advantage of it.”