Unfortunately, many people really don’t know much about Uruguay, much less about Uruguay Farmland.
As an investor, there’s an opportunity there. Land prices have been increasing significantly over the last several years, but good values are still there and the country itself is a beacon of stability when it comes to the agricultural business.
Here are a few excerpts of a letter from Juan Federico Fischer, Managing Partner at Fischer & Schickendantz in Montevideo:
“Productive agricultural farmland is gaining increasing attention from investors worldwide, as global demand for food rises and arable land per capita decreases. The attractiveness of this new asset class lies in its non-speculative nature and steady yields, along with the consistent appreciation that the land is likely to deliver over time.
“Uruguay, one of South America’s most stable and open economies, not only has the continent’s friendliest investment climate, but is also endowed with some of the most productive soil available, both for agriculture and cattle breeding. It’s no surprise that foreign investors are progressively focusing on Uruguayan land.
“Among the factors that draw investors to Uruguay, we find:
- A well priced and transparent property market: Every property in the country is mapped, and that map is available online, so an investor can verify a property´s soil types and productivity index.
- Widespread availability of farm management expertise: This makes it easy for the absentee investor to purchase a farm and have a farm management firm oversee it and run the activity on the land, reporting to the owner as required.
- A very liquid and dynamic land-lease market: This enables owners who do not wish to exploit the farm, to simply lease it.
- Sound fundamentals underlying the investment: The asset will likely appreciate consistently and in the meantime provide stable returns: leasing agricultural land yields between 3.5 and 4% of the land’s value, and farming it yields –on average- 3 to 9%.”
For more information, check out the Fischer & Schickendantz website: www.fs.com.uy
If you have ever considered owning farmland with high taxes, you might consider Uruguay Farmland Opportunity.