Powerful Reasons to Invest in Agro Pools in Argentina, Paraguay and Uruguay

Post available in: English Español

Agro pools provide investors with the possibility to participate in a diversified pool of agricultural production. There are several reasons, both regarding macroeconomic variables and in respect to the particular of these vehicles which make them a compelling alternative for returns and diversification in the long term.

World population is increasing, and emerging economic powers like China and India are changing their eating habits, demanding better quality and bigger quantities of food. Global food demand could double by 2050, according to a projection reported in the journal Proceedings of the National Academy of Sciences (PNAS).

Grain prices may have some volatility due to short-term conditions, but over the long term the rising demand for these products is a powerful force driving profitability growing sales for the agribusiness industry. At the same time, arable land is decreasing as a percentage of total land due growing cities over the rural areas in most emerging markets, so the productive resources are getting scarcer in a period of growing demand.

Monetary policies are another positive factor for these kinds of businesses; countries like the US, the Euro Zone and Japan are embarking in aggressive monetary policies in order to reinvigorate their uninspiring economic growth. Lower currency values means higher commodity prices and agro products have an excellent track record of performance during inflationary times.

From the perspective of an investor, agro pools provide access to returns from the farming business with a much smaller initial investment and higher liquidity than direct ownership on a farm. The investor also has access to a diversified investment in terms of different kinds of crops and geographical – climatic – exposure.

When the business is managed by seasoned professionals with many years of successful experience, investors also gain exposure to the advantages of an experienced management team with deep knowledge about the fundamentals of the industry.

In times of uncertainty and economic volatility, investing in the agribusiness sector provides an attractive alternative in terms of safety, diversification and potential for long term returns. In the same sense, investment pools are convenient vehicle to gain access to this business in an efficient way suitable for investors of different kind.

Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.

The Gateway Team – When You are Serious About Property


(Visited 109 times, 1 visits today)

About Gateway to South America

Established in 2006, Gateway to South America began as a single office in Buenos Aires. Since then, it has grown into a vibrant regional network, providing professional real estate marketing services to clients in Argentina, Brazil, Chile, Paraguay, Peru, and Uruguay. If you enjoy reading our news site, please share it on your social media!

Post available in: English Español


Comments from our readers

  • These Pool investments in Argentina and Uruguay are unique to this part of the world because of the nature of farm ownership. 70% of the agricultural land that is currently farmed is leased to Pool companies or large corporate farmers. Because of this access to Pool Managers with a good reputation is highly sought after. Past returns have been very high.

Real Estate and Investment News from South America
Visit us on LinkedInVisit us on FacebookVisit us on TwitterVisit us on Pinterest