WHY INVESTMENTS IN BRAZIL CERRADO LANDS ARE PROFITABLE
The reason why agricultural investment returns stay high in Brazil is because of the unprecedented low production costs in the Brazilian Cerrado. No other agricultural land in the world can match Brazilian Cerrado production costs and as a result profitability!
In addition, land is still cheap since there is still more potential to turn virgin Cerrado land into productive agricultural land, but the amount of virgin Cerrado land is diminishing and coming to an end which will become the main driver of future land price appreciation which is today already around 10% per year.
It is easy to see that an investment in Farm Serrano Kurt will be very profitable compared to agricultural investments anywhere else in the world. Even much higher profits may be achieved through additional investment in irrigation and/or by switching from cattle to potentially more lucrative crops such as soybeans, cotton or coffee.
- Buying Farms – Farm Serrano Kurt – 3 840 hectares. The offering price of $16 750 000 is for the land and associated ground infrastructures, which include the farmhouse, pastures, fountains, fences, roads, electrical installations, etc. The cattle are not included in the selling price but can be acquired through separate negotiations.
- Buying more Farms or land in West Bahia. Farms ranging from 5 000 ha to 40 000 ha can be cut out of the existing farmland structure to be separated into a single independent farm. Depending on the state of the development prices would range between $15 000 000 to $100 000 000.
- In addition to Farm Serrano Kurt, you can also buy other UNCULTIVATED VIRGIN CERRADO LAND plots and further invest in their development. There is the option to purchase uncultivated or more or less developed land. You may invest for example between $ 2 000 000 to $ 4 000 0000 for say 1000-2000 hectares of uncultivated land. Due to the fact that undeveloped land is constantly being cultivated in the Cerrado region, you can either convert it yourself into suitable farmland or after some time you may choose to take a profit by selling it to neighboring farmers who are constantly looking to buy adjacent plots.
- Another wonderful opportunity for a profitable investment is co-operation with a real investor. The grass grown on the owner’s land in the Cerrado Region can currently sustain 12 000 more cattle. 12 000 heads of mostly younger cattle is an investment costing about $5 000 000. You would invest in the purchase of the cattle and provide it as a loan to the present owner at an annual US$ interest rate of 6.5% while you remain the legal owner of the cattle until you will be fully repaid your principal + interest of US$ 6.5% per annum. The tenure of the loan should be around2 -3 years or more.
- In summary: You will receive a high US$ denominated interest rate which no bank will offer, ownership of the cattle will rest with you for the entire period of the contract until the principal and interest are fully repaid resulting in a relatively quick return on investment!
- JOINTCO-OPERATION with the present owner in the DEVELOPMENTof UNCULTIVATED VIRGIN CERRADO LAND. The seller has extensive land ownership in the area at different stages of development, including completely untouched Cerrado Land. The latter will be available at a lower sale price, however, the buyer will need to invest additionally in the conversion of land for agricultural use. The present owner of the land has accumulated considerable knowledge about the area and the process of land development and will be ready to cooperate if necessary. You can also agree on the full management of the property, including the conversion of land and the subsequent management of the farm. This is attractive for a corporation or a rich individual.