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?

  1. Most suitable country
  2. Turnkey, easy investment to operate
  3. 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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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.