What you need to know before buying farmland in Argentina
Sounds depressing, runaway inflation, the devaluation of the peso, the tax pressure and the effect of uncertainty generated by an election year, all delay decisions. However, there are opportunities. Just like the residential real estate market, rural real estate is no stranger to challenging issues in Argentina. Inflation, the devaluation of the peso and the high tax pressure all affects profitability, but also creates a complex scenario to generate new business which in itself is an opportunity. However,…
For the sixth consecutive month, the level of activity in the Argentine rural real estate market increased
Farmland sales and rentals increased by 18% in June, compared to May 2018 driven by the positive exchange rate stability and the rebound of the Governments popularity in recent surveys. The rural farm price index that measures the level of activity in the rural real estate market (Incair) grew again once again in June and accumulates six consecutive months of increases, reported the Argentine Chamber of Rural Real Estate (Cair). The indicator, which is based on the real estate operations carried out and surveys…
Argentine Economic reforms have more than doubled farm profitability
Argentine Economic Reforms introduced by Argentina’s new government have “more than doubled” profitability prospects for farmers, said Adecoagro, the South American agricultural group in which George Soros is the biggest investor. The farm operator – which has more than 350,000 hectares planted with field crops and sugar cane – said that changes introduced by the administration of Mauricio Macri, who was elected Argentine president in December, “have and will continue to have a…
Pensions Funds See Growth in Farm Investments
Farmland is attracting growing interest from Pensions Funds, hedge funds and even mom-and-pop investors as they seek to diversify assets and capitalise on an agriculture industry slump that has pushed down land prices in some regions. Financial services giant TIAA-CREF said Tuesday it has raised $3 billion for its second global farmland investment partnership, exceeding its initial target of $2.5 billion. The fund, which will invest in North and South America and Australia, has lined up commitments from institutional…
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…
