Advantages of Investing in Farmland
- Increasing global demand for food
- Consistent long-term appreciation
- Annual cash return
- Non-volatile asset
- Store of value
Why Uruguay?
Investor-Friendly Country:
- Foreign and local investors treated equally
- No limitations to ownership by foreign buyers
- No currency exchange controls or forced conversion
- Foreign currency can be used: Dollars, Euros, etc.
- No restrictions or taxes when transferring money into, or out of the country (repatriation of capital)
Stability and Safety:
- Latin America's safest country
- Tops rankings in political and economic stability
- Tops rankings in transparency and lack of corruption
- No social turmoil: existence of middle class and Latin America's lowest income gap
- Solid legal system with strong reputation for respect of contracts and private property
Why Farmland in Uruguay?
- Most suitable country
- Turnkey, easy investment to operate
- Transparent market
A) Uruguay's Suitability
- Non-degraded soil
- Even rainfall year-round
- World's largest aquifer beneath region
- Temperate climate
- Two crops per year (over long run, 1.7)
- Competitive producer
- No government intervention in the market
- Developed land rental market
Uruguay: A Global Player
- 6th exporter of soybeans
- 5th exporter of dairy products
- 4th exporter of rice
- 5% of global beef exports
A country of 3 million feeding 50 million
Agricultural Suitability
South America
Source: Atlas of the Biosphere Center for Sustainability and the Global Environment University of Wisconsin - Madison
Global soil degradation, and where Uruguay stands
Global water shortage and where Uruguay stands
Source: Intergovernmental Panel on Climate Change, 2007
B) Turnkey, Easy Investment
- The investor may farm the land directly...
- Or have a farm management company handle every aspect of the operation...
- Or lease out the land (there is a very liquid rental market for cropland)
C) Transparent Market for Land
- The country is mapped, with soil types classified according to their productivity
- Each type of soil is has a productivity index ("CONEAT" index)
- The map is available online
- Thus, land productivity is verifiable
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