IS ARGENTINE FARMLAND A BUY ?
Argentine farmland prices dropped to below 2010 prices in 2015 according to Argentine Chamber of Rural Real Estate (CAIR). For farmers the current populist government lead by Christine Kirchner and now potentially lead by her dauphin Daniel Scioli has been an unmitigated disaster of historic proportions not only for the middle class but for those effected by the increased poverty levels throughout the country.
This last decade has be characterized by two defaults ( Argentina is still in default from the second one ) hyper inflation, hyper corruption and incompetent fiscal management.
Even the most efficient farmers without debt are struggling to make money. Those who farm areas a long way from the ports are most affected.
As 70% of the most productive farmland in Argentina is leased to professional growers using privately funded grain pools to cash flow the operation, they are, in some cases, offering up to 50% less for the rights to lease farms this year to preserve their profit margins.
This all begs the question; What else could go wrong? Well there is hope. If the other political contender Mauricio Macri, currently governor of Buenos Aires, wins the Presidential race in October then, if his excellent running of the city is anything to go by, Argentina can expect a total reverse in fortunes.
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