You can’t afford to buy a farm in South America ? Maybe these are another options
Farmlands in Brazil and Argentina are some of the most fertile, productive and sought after in the world, but investors looking at the continent should be cautious. Brazil and Argentina currently have laws that place certain limits on the foreign ownership (individuals and corporations) of farmland. Other farms in South America countries like Chile, Paraguay, and Uruguay are much more foreign business friendly. But Chile (very mountainous) and Uruguay (small country) offer comparatively fewer farmland…
What are farm syndicates and how do they operate?
Farm syndicates are a business model that offers investors the possibility of buying shares or part ownership to take part in a rural productive initiative, whether this is an agricultural project or a horticultural one. It consists of several investors with similar interests seeking to obtain benefits through rural activities without the need to settle in a rural area or be experts in these activities. This exciting and successful model is widely extended in New Zealand. Myfarm.com is the most visual…
Investment funds worldwide after large farms in response to roaring investors´ demand to buy farmland assets
With many agricultural commodity prices at multi-year highs, buying farmland is seen as a more direct way to cash in on valuable crops and to take advantage of long-term appreciation of farm property. This is done by farm syndicates or direct ownership. As a result, investment funds worldwide have put an estimated $20 billion to $30 billion in agriculture globally, and interest is also growing from ultra-rich investors and pension funds, which see farmland as tangible, strategic assets. Private funds are not…
Argentina Land Laws become more flexible
Argentina Land Laws become more market-friendly Argentina’s government has recently amended the Land Laws by decree in order to promote further foreign investments in farmland which in the past has been in the too hard basket for agricultural investors and farm production companies and individuals. Changes to the Rural Land Law proposed last week by the government to promote the increased investment and development in farmland. With the elimination of the Financial Information Unit the Argentine Tax…
Farm syndication is a new trend in South America
Working from the old adage “together we achieve more” farm syndication in South America is to date still very much a small part of the rural economy. Note that farm syndicates (equity farming, farm equity partnerships and multi-investor farming entities ) are not like listed Agriculture Funds that invest across multiple properties in a pooled fund. Syndicates have a different structure and investment profile altogether. The growth in farm syndication has come from the likes of: professionally…
