So you want to buy farm land in South America – What are the options ?
So you want to be a landowner in South America Investing in farmland can make for an intriguing alternative to the stock market. Farmland is safe historically, an excellent hedge against inflation and is an asset class that does not correlate with the normal stock market. As the world’s population continues to grow (9.15 billion estimates by 2050) and the global middle class continues to emerge (with changing dietary habits toward more calories and meat), farmland is poised to become an even more intriguing…
Record Brazilian soybean supply set to pressure competition in 2022
Record acreage leads to unprecedented output Brazilian beans price competitive as real weakens Brazil to remain world’s top supplier on robust China demand B10 mandate unlikely to dampen crush momentum The Brazilian soybean sector is forecast to produce record-breaking volume in the crop year 2021-22 (September-August), likely pressuring major rivals the US and Argentina. The National Supply Company, or Conab, and the US Department of Agriculture expect Brazil’s soybean production at 142.8 million…
The Fiagro and new opportunities for investment in Brazilian agribusiness
The government’s aim with Fiagro is mainly to relieve public coffers of the pressure from subsidizing interest rates for agriculture production by encouraging private investors Enacted on March 29, 2021, Federal Law 14.130 creates a new type of investment fund in Brazil, dedicated to investments in the agribusiness production chain. The new legislation is quite flexible in terms of the asset classes in which an agribusiness investment fund, or Fiagro, can invest. The government’s aim with Fiagro is mainly…
Populists Governments are reforming Latin America Agribusiness but uncertainties persist
Key View • The recent wave of anti-establishment governments across Latin America could result in significant structural changes to the agricultural sectors in these countries. • The agribusiness sector played a key role in providing support to these ‘outsider’ political campaigns, and we believe agricultural reform will continue to dominate political discourse over the next few years. • We believe that the production of soybean, grain and livestock, mainly in Brazil and Argentina, is most…
What Brazil’s President-elect Jair Bolsonaro is likely to change
Congressman Jair Bolsonaro won Brazil’s presidency Sunday on promises to overhaul several aspects of Latin America’s largest nation. A glance at the top issues that are likely to change in a Bolsonaro administration: ENVIRONMENT More than half of the Amazon rainforest is in Brazil, and some environmentalists worry Jair Bolsonaro’s presidency will open it up to increased deforestation and mining. Also, some observers believe Jair Bolsonaro’s strong ties to agribusiness leaders in Congress,…
Brazilian Super Sized Irrigated Farm becomes available
This farm is located 758 meters of altitude, in the hydrographic basin of São Francisco. It is located in the division of sub-basins of Grande river and Corrente river with Porcos river draining to the direction of the Grande river, Guará rive, Porcos rivers and Mato steam draining into the Corrente river. The farm is used for livestock and the production of soy, corn, coffee, cotton, sorghum, millet and barley. The access to the farm from the municipal building of São Desidério can be: 27 kilometres along…
The important role that Brazil has in global agriculture
A report entitled The State of Agricultural Commodity Markets 2018, recently published by the United Nations Food and Agriculture Organization (FAO), places Brazil as the world’s third biggest exporter of agricultural goods. In the document, FAO warns about the impact of climate change on agriculture and food security on the planet up to 2050. The information was given by UN News. In the document, released Monday (Sep. 17), FAO reveals that the value of global trade in agriculture more than tripled in…
A new Global Agricultural Index shows Argentina in a good light
Duxton Global Agricultural Property Index Analysis of historical and forecast returns generated by investment in agricultural property has been undertaken. Total returns from agricultural property investment have been generated. Total returns consist of capital returns from investment in land and improvements; and income returns from activities conducted on agricultural land. The Duxton Global Agricultural Property Index has been constructed with the total, capital and income returns. Returns provide a broad…
Brazilian farmer optimism high with increasing soybean prices and cheap credit
Farm equipment manufacturers in Brazil are expecting strong sales this year, boosted by a second straight bumper soy crop and rising grain prices, which will more than offset weakness in the sugar cane sector, giving Brazilian grain farmers a new found optimism. Some machinery producers are forecasting sales growth as high as 8% in 2018 as farmers’ confidence rises and record-low interest rates encourage them to borrow and invest. “In the end, it all comes down to the price of soybeans. If that is good,…
Is Brazilian Farmland a Buy ?
In recent years, Brazil has solidified its role as a global agricultural powerhouse. It has become the world’s largest exporter of soybeans, coffee, and sugar, as well as the second largest overall food producer on the planet. Over the past 15 years, Brazil has increased agricultural production by 156 percent with overall Gross Domestic Product (GDP) from agriculture reaching an all-time high in the first quarter of 2017.1 The agricultural sector as a whole accounts for nearly 6 percent of Brazil’s total…
Brazil to allow foreign lenders to hold land
Foreign lenders and investors are eagerly awaiting a change of law in Brazil, after finance minister Henrique Meirelles suggested they would be allowed to use land as collateral in trade finance and other loans from March onwards.< In a televised interview with local news outlet Globo, Meirelles explained that the government was ready to re-establish the right to fiduciary lien – allowing the transfer of land ownership to lenders in case of default – for foreigners by March 15. The move involves changing…
Brazil Farmland is now available for Foreign Ownership again
Common Sense Returns to Brazil Farmland Brazil’s government plans to lift current limits on foreign ownership of Brazil Farmland, Secretary of Investment Moreira Franco, the person behind privatization for the new administration, told Reuters on Wednesday. Franco called the restriction on sales of Brazil Farmland to foreign individuals and companies “nonsense” and said interim President Michel Temer will reconsider the issue. The restriction was adopted in 2010 by former President Luiz Inacio…
Agriculture is Brazil’s one and only bright spot
A record soybean crop leads a strong farm performances to make the sector the only one growing in a country mired in recession and political uncertainty. A deep recession, political chaos and a Zika virus epidemic have taken Brazil to its knees but the country is still a world beater in one respect: Agriculture. Brazil’s crop agency, Conab, said it expects a record soybean crop this year with a corn crop close to a record also. The country’s farmers look to set record crops of coffee and…
