Farmland in Argentina. In the last eight years, foreign ownership has declined considerably
In 2011, the government of Cristina Kirchner passed a law to limit the ownership of farmland by foreigners. And, among other things, it established that a foreigner could not have more than 1000 hectares in the middle of the core agricultural zones. The provinces then made equivalences to that area. At that time the law was imposed on the grounds that there were millions of hectares controlled by foreigners. However, according to a subsequent census carried out through the National Registry of Rural Lands,…
Brazil’s Elon Musk? Interview with Erasmo Carlos Battistella, CEO, ECB Group
Erasmo Carlos Battistella: Omega Green in Paraguay will be the first advanced biofuels plant in Latin America, indeed the first one in the whole southern hemisphere. It is an $800million project that will produce renewable diesel (HVO) renewable aviation fuel, also known as SPK. ECB Group already has two biofuel plants in Brazil, so we are used to building and operating complex renewable fuel facilities. Our existing plants make ethanol from maize or sugar cane and biodiesel from animal fat and all types…
Why farmland now? Amidst unprecedented market volatility
Why farmland now? Financial markets are responding to the current limited visibility and uncertainty, both severely exacerbated by the coronavirus pandemic, by retreating towards safe haven investments such as U.S. treasuries (where yields have declined below 1%), gold and certain currencies (e.g. the U.S. dollar). A compelling alternative prior the virus outbreak, and made more so by coronavirus, is farmland. Farmland has a history of exhibiting unique value durability and income levels through economic downturns.…
The first solar energy project for Agro to receive Argentina’s fiscal benefits is operational in San Luis
The first “behind-the-meter” solar power plant for an agricultural establishment in Argentina is already fully operational. Though the project required more than three years of analysis while the energy laws, regulations and policies were evolving, once the corresponding scopes were defined, approvals obtained, and materials delivered, the two-hectare solar project was completed in one month and has been operational since the beginning of September 2019. The solar plant was developed for a cattle ranch…
Is Vaca Muerta doomed? In 2 years, renewables will be cheaper than fossil fuels
The cost of renewable energy sources like wind and solar continue to fall drastically, and it was only a matter of time before they were cheaper than fossil fuels. The International Renewable Energy Agency (IRENA) believes that’ll happen by 2020 based on their new report. Prices could be as low as three cents per kilowatt-hour for onshore wind and solar photovoltaic projects over the next two years. Across the board, average costs of producing renewable energy projects have been very competitive.…
Do wind turbines or solar panels add or subtract from a property value?
With Solar and Wind Farms now becoming common around the world including South America it might be time to look at other countries experience regarding whether these projects add value to the land when it is sold. For South America, Australia has some compatible data. Solar panel arrays, wind turbines and telecommunications towers are popping up on farms and grazing properties from northern Queensland through to Tasmania, providing producers with a steady, passive income stream, particularly valuable now as…
New Zealand Companies investing in South America
If the New Zealand agribusiness experience is anything to go by, Australian Agriculture Minister David Littleproud has good reason to be paying close attention to beefing up our farm trade prospects in South America. Mr Littleproud has been in Argentina and Brazil for the past week pushing for market access for Australian exports. The visit has included kick-starting high-level government to government dialogue on agricultural trade opportunities with Argentina, which has long been a favorite for farm sector…
Adecoagro – One of the largest agricultural companies in South America
Adecoagro started operating in 2002 with the purchase of 74,000 hectares of land in Argentina and from then on they became one of the largest agricultural companies in South America. Adecoagro production is mainly focused on sugar and ethanol, but it is also producing soy, rice, corn, and dairy. The company’s main competitive advantages are its low production costs, clean ownership structure, varied land ownership, and strong valuation (stock price below book value). Your stock screener or data provider…
Discover AgTech’s potential in Argentina
Buenos Aires, Rosario, Córdoba AgTech week is a public-private initiative Agro Tech conference to explore and share Argentina’s AgTech potential. The event will focus on creating new business opportunities, showcasing the work of the entrepreneurial world and examining the impact that innovation and new technologies have on productivity. AgTech week also seeks to meet demands with solutions, tackling challenges in the field. There will be forums, panels, networking meetings and the 1st National AgTech Conference…
Agricultural Remote Sensing Market Map: 20 Remote Sensing Startups and the Varied Data That Fuels Them
There are many agtech startups that use remote sensing technology for different precision farming applications. Some try to provide a field-level analysis using drones or airplanes, while others develop large-scale macro analytics using globally available satellite data. To some extent, it is possible to connect airplane or drone-based data with field-level information, and drone-based data with satellite data. Indeed, some of these companies try to combine multiple sources and build intelligence around it.…
With the support of China, Jujuy in Argentina will be the largest solar park in Latin America
Thanks to the financing provided by the Chinese bank EXIM, the Government presented this morning the start of construction of the largest photovoltaic park in Latin America. The solar plant at Cauchari, in the Jujuy department of Susques, will generate about 300 MW from 1,200,000 panels to be placed on a 700-hectare site, the equivalent of the average City of Buenos Aires. The Cauchari stages I, II and III will demand an investment of U.S. $ 390 million, of which U.S. $ 331 million will be contributed by China…
Agri-Business M&A Report for Argentina
Agribusiness Report Q2-2017 reflects the continued high level of activity in investment projects from Q1 but fewer M&A transactions in Argentina. As mentioned before, there is an increase in agricultural companies looking to finance working capital and investment plans through local financial markets. As the months develop in 2017, the political factor will play a protagonist role in investment decisions due to the national mid-term elections and the yet unclear economic recovery. The assumptions determined…
Renewable Energy Targets for Commercial & Industrial Industries in Argentina
The Argentinian government recently passed legislation committing high energy users in the country to collect 8% of their energy from renewable energy sources by 2018, with this figure set to rise to 20% by 2025. High energy users from airports to large scale brewers will be affected by the mandate, meaning it’s important you and your team understand the regulation. This specially developed report includes details of: The future landscape for clean energy development in the context of Argentina’s 7,500…
