WEST BAHIA, BRAZIL – ONE OF THE BEST PLACES FOR CATTLE AND DAIRY PRODUCTION!
The reason why agricultural investment returns stay high in Brazil is because of the unprecedented low production costs and taxes for agriculture activity in the Brazilian MATOPIBA region. No other agricultural land in the world can match West Bahia production costs and as a result profitability! In addition, land is still cheap since there is still more potential to turn virgin land into productive agricultural land. Since the arable land worldwide is diminishing it 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 Cattle farms in West Bahia (Farm Serrano Kurt) will be very profitable compared to agricultural investments anywhere else in the world.
Much higher profits with optimised land use 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.
- You can buy cattle farms with grass pastures 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 stage of the land development prices would range between $15 000 000 to $100 000 000 per farm.
- You can buy uncultivated virgin land plots. There is the option to purchase uncultivated or more or less developed land. Investments may vary between $ 2 000 000 to $ 40 000 000 for 1 000 to 20 000 hectares of uncultivated land. Due to the fact that undeveloped land is constantly being cultivated in the Cerrado region, you can either convert it by yourself into profitable crop or cattle production farmland by using irrigation with central pivots.
- Joint-venture for development of cattle breeding farms under irrigation with central pivot system. The amount of the land we can offer allows to develop high productive farms. Installing of irrigation system allows to increase the productivity per ha to 6-7 cows for cattle production. West Bahia region is located to the tropics, there is no winter which means all produce will grow all year round if irrigated. All the land is situated above the Urucuia aquifer.
- Joint-venture for development of crop production farms under irrigation with central pivot system. Western Bahia is one of the most active agricultural frontiers of the world and characterised by rapid changes in land cover and land use for cropland, especially soybean, and agricultural intensification through the adoption of new technologies and irrigation, leading to very high yields. Cropland area in the region reached 2 000 000 hectars, mainly soybeans, cotton, maize and high quality coffee. Annual precipitation is more than 1200 mm year and a six-month rainy season, from mid-October to mid-April, combining with irrigation allow to have 2 to 3 harvests per year. We can offer enough land for developing of crop production farms.
- Additional investment opportunity in cattle breeding. The grass grown on the owner’s land in the Cerrado Region can currently sustain 12 000 more cattle without irrigation. 12 000 heads of mostly younger cattle is an investment costing about $5 000 000. You would invest in the purchase of the cattle and provide it as a loan to the farm owner at an annual US$ 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 around 2 -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!