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Update on Uruguay farm leasing values and regions

Increases the value and volume of the land leased 

The departments ( small provinces ) in Uruguay with the most leased area are Artigas, Soriano and Rio Negro. Livestock accounts for 45% and 31% was connected with non irrigated agriculture. Leasing contracts totaling more than 280,000 hectares, amounting to USD 42.6 million in value.

In 2017 the land leased increased 45% over 2016, according to the Ministry of Livestock, Agriculture and Fisheries (MGAP). The surface area grew 40%, surpassing 908,000 hectares with the value of operations USD 110 million  with an average value of USD 122 per hectare, 8% in this comparison. Soriano, Colonia and San Jose are the departments with highest value leased.

The Bureau of Agricultural Statistics (DIEA) published the report MGAP price of land, leases 2017 , based on information provided by the Directorate General of Registries of the Ministry of Education and Culture (MEC).

In 2017 2.768 leases were made, implying an increase in number of 45%, taking as reference the previous year; with an area of 908,000 hectares  showing an increase area of 40% over the previous period.

The total transaction amount of USD 110 million was an average price of USD 122 per hectare, showing an increase of 8% over the average price of registered contracts in 2016.

The average price of livestock leases was USD 67 per hectare for agricultural and livestock use USD 145, and for non irrigated agriculture U S $ 226 per hectare. These items added to almost 822,000 hectares, amounting to USD 97 million and accounted for 88% of total volume traded in the this period.

DEPARTMENTS with more surface area LEASED.

The departments with the largest leased area were Artigas, Soriano and Rio Negro. Livestock in these departments accounted for 45% and 31% was non irrigated agriculture. These department contracts totalled more than 280,000 hectares, amounting to USD 42.6 million.

Soriano (USD 214 per hectare), Cologne (USD 209) and San Jose (USD 189) are the departments with a significant presence of agricultural production recording higher average prices along with higher income.

The contracts signed  with lower values ​​corresponded to the departments of Maldonado and averaged USD 68 per hectare.

Opinion: We suspect the increase in areas being leased is due in part because land values have declined so the larger investors are land banking rather than selling and meeting the market.

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.

www.gatewaytosouthamerica.com

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