WHY TO INVEST IN FARMLANDS IN LATIN AMERICA?
Although land prices have increased in the past few years, the current strength of the US dollar makes a strong case for investing in farmland Latin American’s Mercosur region. The countries in the Mercosur include Brazil, Paraguay, Argentina, Uruguay and Venezuela.
These counties share an asset which is even more valuable than gold: The Guarani Aquifier.
The Guarani Aquifer sits beneath the surface of Argentina, Brazil, Paraguay, and Uruguay. As one of the world’s largest aquifer systems, this extensive reservoir encompasses 1.2 million square kilometers, and contains an unprecedented amount of water.
Experts believe that this water body can supply enough drinking water to last 200 years. Given the importance of water for agriculture, this makes the Mercosur an attractive region for farmland investment.
The largest segment of the Guarani Aquifier lies beneath Brazil.
FARMLAND INVESTMENT IN BRAZIL
Brazil boasts the second largest cattle herd in the world, making it the second biggest exporter of beef. In addition to its beef and dairy products, Brazil is a key producer of coffee, sugar, orange juice, soybean, cotton and other agricultural products.
FARMLAND INVESTMENT IN PARAGUAY
Paraguay might attract investors as it offers a low-tax policy for foreign investors. Additionally, Paraguay’s labor costs are is lower than most of the other Mercosur countries.
Paraguay and Brazil own a bi-national hydroelectric dam, which is the world’s largest generator of renewable clean energy. Consequently, energy costs are low. Even better, Paraguay is strategically located with easy access to neighboring countries and has a stable currency as far as South American currencies go.
In fact, it has been reported that Paraguay has the second highest return-on-investment for the private sector in Latin America. That is why so many people are not only flocking to Paraguay as a second residency haven, but as a cheap investment opportunity.
With over eight million hectares available for agriculture, Paraguay’s agriculture can potentially triple its food production output, and Paraguay is the second largest exporter of stevia, the natural sweetener that is rapidly gaining s greater share of the global market.