Company specializing in direct investment
in farmland and asset management.
Investment in farmland and operate cattle and
crops farms.
We ensure the growth of their capital in agricultural land banking.
We investment structure gives the investor
direct ownership including control over the ultimate disposition of the asset.
OUR VISION:
Being a solid and reliable investment platform, advising on the successful purchase of farmland
OUR MISSION:
We are a group of professionals offer investment opportunities conservative and guaranteed cultivating customer satisfaction, ensuring profitable growth of your investment through the efficiency of our human resources.
WHY WE OFFER THIS?
The production potential of Paraguay reflects the faith we have in our investment products and our sufficient capacity to offer our customers opportunities to generate wealth.
OUR ADVICE TO PURCHASE LAND IN PARAGUAY
- Expertise and legal inquiries on possible litigation.
- Study of property title, from the first to the current title,to avoid double degree purchase land, and overlapping titles.
- Study the history of titles with Public Notaries
- Verify Ownership, corroborate coordinates described in the titles, know the boundaries, landmarks based on an expert report.
- Request the (Registro Público del Paraguay)
a. Certificate of status and dominance of the farm
b. Certificate of interdiction not owners
- We have a turnkey corporation in
reserve available to the investor as an
investment tool for the purchase of land, and develop
productive activities in Paraguay avoiding bureaucratic administrative
procedures, and start trading immediately.
- To study the actual market prices to evaluate the bid price of the property under study to achieve profitable
investment.
- Analyze soil, climate, soil and are to conform to the agronomic
requirements for potential use in livestock or crops.
- Administration and operation of the farm.
- Turn on leasing the property to produce an annual income.
- Analyze the locations to avoid national reserves, parks, protected indigenous lands, places of conflict.
- Use all the legal protections in
order not to fall into unproductive latifundia, and meet the agricultural status of Paraguay.
- Assessment and Environmental Impact
Study before the development of the fields.
- Design and evaluation of investment projects.
- Advice on IMAGRO, Agricultural
Activities Tax, taxation under which the investor would.
- Structure and mount collective investment vehicles through a S.A. to integrate a project several investors buying land.
- Structure and mount collective investment vehicles through a S.A. to integrate a project several investors buying land.
Opportunity farmland in Paraguay
When we spoke to the potential investor interested in rural land and agricultural livestock character. We do it with your feet on the ground.
We show figures and testimonies about the land market in the last 10 years,
for the investor to have an idea.
The revaluation of long-term land value seems safer than the profitability of the farms themselves.
The farms are not always profitable, as a weather-dependent activity, an adverse scenario drastically reduced projected profitability and being commoditie scenarios vary according to the international price, although part of the income can be secured with futures contracts.
Investing in farmland
If you are one those investors who are looking for a solid investment opportunity, you may want to invest in farmland in Paraguay - South America. With the current state of the economy, we are in the early stages of a bull market in terms of investment in farmland and the environment of political stability makes this area the ideal place to spend your money.
Making a long-term commitment Income.
When it comes to making investments, each individual knows that their long-term offer the best chance for excellent performance. Make an investment in farmland is an excellent long-term plan with a strong track record of success. In fact, over the past 15 years, farmland have exceeded the returns offered by stocks and bonds. At the same time, investment in agricultural land is up to 60% less risky than investing in stocks and bonds
REASONS TO INVEST NOW.
Realize an investment in farmland is a great way to generate money in the long term, there is no better time than now. This is because the world is in a period when crop demand is at its highest point. This is because the time has come when crops are used for food, animal feed and fuel As the world population continues to grow, so does the demand for food and farmland to cultivate them. Similarly, countries like China and India are consuming large amounts of commodities, which means they have a growing demand for animal feed. Of course, the increased focus on biofuels has also resulted in an increased demand for crops.
With a high demand for commodities is reasonable demand for farmland may increase proportionately. This is where the wisdom of investing in farmland can help an investor to enjoy a quite satisfactory return relative to your initial investment.
Investment in farmland in Paraguay
Although there are many places where you can invest in farmland, Paraguay is an excellent choice. This is because the land will have the following qualities:
* high quality soil
* Good
infrastructure
* Some of the lowest prices per
acre in the world.
* By combining high quality
with low cost land, an investor can get from the start of the investment and
potentially enjoy significant rewards later.
* Paraguay is the 4th largest
exporter of soybeans
* the 5th
largest exporter of beef
* 1st perpetual organic sugar
exporter
* 1st net energy
exporter
* the 2nd world
producer and exporter of Stevia
* the 2nd
largest producer of tung
* the 3rd world fleet barge
fleet (2200 units with 200 tugboats) after USA and China.
* the 4th largest exporter of
charcoal
* the 4th largest exporter of
cassava starch
* the 4th largest exporter of
soybean oil
* the 5th
largest exporter of soybean meal
* the 6th
largest producer of soybeans
* the 8th World
soybean industrialization
* the 6th World
maize exported
* 10th largest
exporter of wheat
* 11th largest
exporter of silk yarn
* Agricultural production
represents 27% of GDP
If you think you are ready to invest in farmland in Paraguay, be sure to work with a company with
experience in real estate and comprehensive knowledge as the legal, tax, financial knowledge and international
commodities markets, which will help make the best
decision possible. By working in close collaboration with a company that specializes in the industry, you are sure to enjoy the fantastic
results.
Why should I invest in farmland
If you are an investor or a short term long term, must be aware of the importance of real estate and how meaningful it is to be in the long run.
Traditionally, investors waited for a long time to buy a property of cropland.
Many European investors waited, thought about it, and ultimately decided to invest in the exact moment of 5-10 years ago and have obtained substantial gains today. However, the situation has now changed, a greater number of people are interested in agricultural investments.
As you know, the Chaco was and is one of the more accessible of the world and which is excellent for livestock ed because their soils are rich in minerals. And eastern agrologicamente excellent for the production of cereals and oilseed where excessively high prices have experienced in the last three years.
Today the field of the western region is accessible, but the price increase within decades. Then you will be happy for your sensible choice.
Many people wonder why they
should invest in Paraguay, the main reason behind this is the target market
which is very attractive. Fields of the East and West Regions totaling some 40
million hectares of these represent almost 70% to 80% of the arable land in
Paraguay. This shows why investors are choosing to Paraguay as the new place
for investment in farmland.
You can safely invest in
farmland because a farm Chaco is a very stable and conservative investment and
future income generation will imminently profitable. It also has protection
against inflation. There are projects of meat processing industries such as
refrigerators, and facilities of the Mennonite colonies, Cooperatives and
several populated cities. Moreover, the price of each hectare is low, despite
the recent increase. Compared to other places in the prices of agricultural
land, the Paraguay has annual rainfall that meet the agronomic requirements,
compared to Australia and Africa where residual soils are selling and where no
water or rain, Paraguay has one of the soil most fertile in the world. Our
Country, no restrictions on foreign sovereignty only by a foreigner can not buy
at 50 km from the border in a personal, so structured to make the purchase with
a corporation, therefore, you can buy a farm where want.
Earlier this decade, the main
concerns were about the reconstruction and energy. However, things have taken a
different course and concern has shifted to food and water. The cost of wheat,
soybeans, corn, meat and other crops from the fields of Paraguay are
increasing, but offers the lowest prices of agricultural land in the whole of
South America. This makes the
regions of Paraguay as attractive for investors from around the world. Today
investors can get better opportunities to buy farmland in Paraguay, no worries.
On average, a farm in the
Chaco is sold for around U.S. $ 350 - U.S. $ 700 per hectare. Agricultural land
will increase in the coming years around about U.S. $ 40 per hectare will get a
better picture of the rates when comparing prices with those of other
countries. Therefore, the benefit to agricultural investments in Paraguay is
evident and now is the time.
If you make investments in
farmland, then you have nothing to lose. In fact, you will make a lot of profit
in the future with your new purchase because the price of land in the Chaco up
and stay up, because the borders will extend to agricultural livestock farm
because that's the trend observed and is reflected beef exports.
Capital
investments in farmland long term
In investments (Agricultural
LandBanking), investors are enjoying several years of good returns and profits.
As is the case with any form of investment, the main characteristics of the
investment market drives results, many current wealthy got their fortune
retiring with U.S. $ 10 to 15 million, venting his investment of 10-15 years
ago that initially conformed capital $ 500,000, when they had acquired 40,000
hectares farms, valued at U.S. $ 10 per hectare with an initial capital of U.S.
$ 400,000 today I turned wastes of capital by selling to U.S. $ 350 per acre
their farms getting substantial profits
When looking at long-term investments, the
potential capital growth in land investments in Paraguay, are impressive growth
rates, coupled with low risk.
Overall prices (farmland) have increased by up
to 30% in the last 12 months and 130% since the beginning of 2006 with an
average growth of 920% in the last 10 years.
When looking investments for growth From Long
Term Capital most individuals take into account the mutual funds, mutual funds,
stocks, bonds and hedge funds. However, the fact is that the earth has had a
better average growth with low volatility. This makes the earth a solid capital
allocation for low risk investor, conservative and conscious.
Having demonstrated that the investment of
large institutional investors and conservative gigantic bore fruit, the land
market becomes exciting and is open to small investors through our investment
scheme as part of a corporation and investing from this, since Hás small
amounts are not sales and consolidate capital needed to acquire large tracts
interesting.
Why has so much
potential farmland as an investment?
When looking at long-term investment and
capital growth potential, we must look at the supply and demand equation.
Land has all the ingredients for demand to
exceed supply and prices of land increase in value in the coming years.
The case of land in Paraguay is clear that of
all the countries in the world to invest in land, the Chaco is one of the most
attractive for the following reasons.
Soil with rangeland
Freshwater, Yrenda aquifer, Rio Paraguay and others, see map
hydrographic
In the Chaco oil and gas are currently several companies in the area
have concession for exploration, exploitation and marketing
The Chaco bioceanic contained within
The prices are low, now is the time to buy
Inelastic
Legacy of Malthus to consider
Project aqueduct
shield against inflation
High annual revaluation of land
Natural wealth, wood, water
rational extraction of forest products, charcoal, poles.
green income,
REDD, biodiversity conservation, draft foundations,
receive donations through sponsorships,
create bank forest carbon footprints.
Development Poles, Mennonite colony area where large industries,
cooperatives, banks, hotels, refrigerators, zootecnias, genetic technologies.
Possible commercial development in the border of Bolivia.
Tourism, many attractions being developed.
The Paraguay River empties into the Río de la Plata, logistically
interesting.
For the future if given and kept the oil up, you can re-emphasize
biofuels and Jatropha plantations make adapting to Chaco.
eoliths Park Development, Baltic photo.
Low property tax.
In the Chaco (Alto Paraguay) showed that it is possible to soybean
cultivation.
Agricultural
LandBanking.
The key to the growth of Long Term Capital
simply involves the acquisition of virgin forest land, who do not enjoy
development, when generating the expansion of livestock driven by the rise in
meat prices and increased exports Paraguayan , the area experienced changes such
as road building, cold storage facilities, ports and an immensity of value
chain in about 10 years that raised the value of land.
The way to make big capital gains in the sector
involves buying land in specific areas, with the expected future development.
With the subsequent sale within 10 years, it is
possible significant a capital gain.
Land Investments for
growth in long-term Capital:
Good past performance with low risk and the
prospect of good future capital growth, makes investing in land obtain
long-term growth an attractive option for all investors.
"Many people made their fortunes in this
investment and you can too, is a proven investment system that does not fail,
success should be replicated, now is the time"
There is no better way to control the Low risk
to build substantial capital gains long term.
As Donald Trump once
said:
"I love the Real Estate.'s Tangible, it's
solid, and it's beautiful."
Howard Hughes was one that believed in
investment in land as one of its high-yield investments, he focused on the
purchase of vast tracts of land under development in California, who came to be
worth billions.
Where is the best
place to buy land?
Paraguay, and we emphasize in the Chaco land
offering excellent low cost, low risk and high return opportunity for
investment in the medium term. Land Investments in Chaco, has exceeded
long-term profitability some asset managements systems offered abroad,
including mutual funds, pension funds, stocks and bonds.
Our investment proposal are solid, long-term
benefits, the facts speak for themselves.
In general, land prices have risen Chaco up to
30% in the last 12 months and 130% since early 2006 with an average growth of
920% in the last 10 years.
If you joined an investment with the purchase
of an estate of 5,000 Hectares, in recent years, the average growth you would
get a return of more than $ 2 million in just 12 years!
Of course, no guarantee, but with the growth
rates we've seen in the last 10 years the gains are possible.
Paraguay is experiencing great changes, much
growth, and now with a capitalist center-right president, will be great
progress in the productive sector, which pushed a herd increased and hence farm
developments that allow investors to sell with a significant benefit their land
over the years.
Today, international investors advise on how to
take advantage of land in Paraguay.
We look at the best places and we emphasize all
the facts, so that an investor can make an informed decision about whether to
invest. A typical minimum investment usually starts with $ 1,000,000. -
With profitable return on investment and low
risk.
The high return investments with low risk does
not come around very often, but we believe that farmland is an opportunity.
If you are considering high yield investments,
the land is ideal for an investor looking for long term you are looking for
great capital growth potential.
Case studies on real
history.
CASE A
Buy: May 2004
Size: 5.000 acres
Price: U.S. $ 25 per hectare Total $ 125,000
Location: Paraguay, Western Region, Paraguayan
Chaco
Department of Boqueron, in Pozo Hondo
Fitness Floor: Area livestock production
05/25/2013 Market Quotation year
Price: U.S. $ 300. - Per hectare Total $
1,500,000. -
Profitability:
1500000-125000 = U.S. $ 1.35 million profit
Time 9 years
(1,350,000 x 100) / 125,000 = 1,080%
120% annually
CASE B
Buy: January 2004
Area: 16,000 hectares
Price: U.S. $ 20 per hectare Total U.S. $
320,000
Location: Paraguay, Western Region, Paraguayan
Chaco
Department of Alto Paraguay, place
the Gerenza
Fitness Floor: Area rangeland
05/25/2013 Market Quotation year
Price: U.S. $ 250. - Per hectare Total U.S. $
4,000,000. -
Profitability:
4000000-320000 = U.S. $ 3.68 million profit
Time 9 years
(1,350,000 x 100) / 320,000 = 1,150%
127.777% annually
CASE C
Purchase: June 2003
Size: 4.000 acres
Price: U.S. $ 200 per hectare Total $ 800,000
Location: Paraguay, Eastern Region
Department of place San Alfredo
Concepcion
Fitness Floor: Area livestock production
05/25/2013 Market Quotation year
Price: U.S. $ 1,200. - Per hectare Total U.S. $
4.8 million. -
Profitability:
4800000-800000 = U.S. $ 4 million gain
Time 10 years
(4,000,000 x 100) / 800,000 = 500%
50% pa
CASE D
Buy: May 2010
Area: 15,000 hectares
Price: U.S. $ 270 per hectare Total U.S. $
4,050,000
Location: Paraguay, Western Region, Paraguayan
Chaco
Department of Boqueron, rather Route Ñ
Fitness Floor: Area livestock production
05/25/2013 Market Quotation year
Price: U.S. $ 500. - Per hectare Total U.S. $
7.5 million. -
Profitability:
7500000-4050000 = U.S. $ 3.45 million profit
Time 3 years
(3,450,000 x 100) / 4,050,000 = 85%
28.39% pa
CASE F
Buy: May 2005
Size: 1.500 acres
Price: U.S. $ 2,000 per hectare Total $
3,000,000
Location: Paraguay, Eastern Region
Department of Alto Paraná, place St. Albert
Floor Fitness: soybean production area
Price: U.S. $ 5,500. - Per hectare Total U.S. $
8,250,000. -
Profitability:
8250000-3000000 = U.S. $ 5.25 million profit
Time 8 years
(5,250,000 x 100) / 3,000,000 = 175%
21.875% per annum
"We are at your
disposal, your interest is our interest, your success our success, we are to
offer good businesses"
Farmland is an attractive long-term investment that
offers current income and capital appreciation, as a hedge against inflation
and diversification favorable and is negatively correlated with traditional
asset classes. With the development of capitalism, is constantly increasing the
price of land, which is due, firstly, to the tendency of the rate of interest
and on the other hand, the increase in land rent in all respects . The income
growth, in turn, is conditioned by the growing demand for agricultural products
and the expansion of cultivated land surfaces. The rising price of land means
that productive consumption is subtracted growing part of goodwill, some
landlords do not use it productively. In fact, since the end of World War
farmland in the United States has experienced a steady increase in value every
year, but four (1983, '85-'87). Most investors have experienced painful falls
in the value of their portfolios lately, but those who have an assignment on
agricultural lands benefited from lower volatility and positive returns to
offset losses from other asset classes.
WELCOME TO PARAGUAY FARMLAND
PARTNERS SA
In Agroindustrial Acaray Sociedad Anónima , Our goal is to
identify, acquire and manage the best agricultural land that Paraguay has to
offer our investor clients. Agroindustrial Acaray Sociedad Anónima performs these tasks
for their investors, which beneficially acquire land within a corporation own
that we make available to each investor.
Agroindustrial Acaray Sociedad Anónima acts as general manager
and uses its extensive network of farmers and ranchers proven attractive for
cash rent or crop share lease Agroindustrial Acaray Sociedad Anónima has the best
tenants, and want to improve the structure and rural buildings to increase
property values. Agroindustrial Acaray Sociedad Anónima strives to be respectful of the land manager that
manages and uses soil conservation techniques to the greatest extent possible.
We also seek alternative energy opportunities as feedstock for biofuels
production.
This document is designed to introduce investors and
trading partners in the reality of the land market, and so they can have a
better understanding of the advantages Agroindustrial Acaray Sociedad Anónima and the
benefits of our investment strategy.
RATIONALE FOR INVESTING
Current Income
Lands revenues have consistently produced agricultural
product sales between 15% and 25%, depending on the climate and the
international prices of commodities, as well as agricultural income.
Capital Appreciation
An important component of the total return on farmland
is capital appreciation. As the demand for agricultural products increases and
the supply of arable land suitable for agriculture decreases, there is a
significant increase in the value of agricultural land.
Inflation Hedge
The land has a positive correlation with inflation and
is considered a classic hedge against inflation. In fact, many investors see as
more favorable than other tangible assets like gold, because farmland produce a
positive cash flow while protecting the harmful effects of inflation.
Diversification
The Farmland negatively correlated with traditional
asset classes like stocks and bonds, and is just a little correlated with
commercial real estate. This provides the stability of the portfolio during
volatile markets while improving risk-adjusted return of a portfolio.
FUNDAMENTALS
FAVORABLE
It predicts good benefits in land investment,
macroeconomic fundamentals are favorable and are about to increase farmland
values in the coming years.
The demand for food
The world population continues to grow and is
projected to increase from the current 6.7 billion to more than 9 billion in
2040. This increase in population will require increasingagricultural
production for food bastecer. In addition, as incomes rise in emerging markets
with large populations, there will be greater demand for a better diet which
usually means more meat. The raw meat requires more grain compared to grain for
direct human consumption. For example, one pound of beef requires seven pounds
ofgrain feedstock and a pound of chicken will need two pounds of grain.
The demand for alternative
energy
Increasing awareness of global warming has led to an
increased demand for alternative energy sources, and the owners of agricultural
land are in a unique position to benefit from this development. Currently, the
raw material for biofuels in the United States is corn and soybeans for ethanol
biodiesel production. The efficiency of corn-based ethanol is improving
exponentially as revealed in a recent study published in the Journal of
Industrial Ecology. Over time, the technology will allow the addition of
cellulosic biofuels made from millet, corn stalks or other fibrous raw food,
but still needed farmland and farmers to plant, maintain and harvest
alternative crops. Moreover, the recent interest in wind energy will lead to
increased demand for land to locate wind turbines.
The supply of arable land, able to provide all the
optimal factors for agricultural crops is limited, and in Paraguay supply is
shrinking. In addition, global supplies of fresh water for agricultural
production are being rapidly depleted. The technological advances that allow
for higher yield of existing farmland helps the imbalance between supply, but
these advances also increase income per acre of existing farmland and therefore
increase its value.
INVESTMENT PHILOSOPHY
Agroindustrial Acaray Sociedad Anónima
Aims to provide the main service management and asset
management purchase agricultural investors who otherwise would not have access
to this profitable asset class is correlated with traditional assets. Agroindustrial Acaray Sociedad Anónima believes that the best form of investment is through
direct purchase by the property investor in Paraguay, so to have a portfolio,
which also allows investors to participate in land revaluation gains.
Agroindustrial Acaray Sociedad Anónima believes that the
purchase decision is critical and seeks to identify undervalued properties that
generate positive cash flows. The risk is reduced when a property is bought at
the right price with multiple sources of return. Agroindustrial Acaray Sociedad Anónima also seeks to improve their farms thereby increasing the long term value of the
property and requires a higher rent. Agroindustrial Acaray Sociedad Anónima actively
manages each property, select a farmer proven its existing network of preferred
producers who want to expand as Agroindustrial Acaray Sociedad Anónima acquire more
farmland for their investors. The result is a partnership that benefits both
the owner / investor and producer.
VIEW
Agroindustrial Acaray Sociedad Anónima see a greater role for
the land asset in the investment portfolios of both individual and
institutional. Revenues from production or lease lands is particularly
attractive because it provides annual income. The Farmland will benefit from
increased demand for grain, environmental demand of alternative energy and the
impact of globalization. The factors that will benefit farmland investments
are:
- Global Demography food demand increases
- The increasing demand for protein by the Asian
middle class
- Alternative Energy demand for ethanol, biodiesel and
wind
- The decrease in the global supply of farmland
- Paraguay has a comparative advantage in agriculture
- Agriculture / Land correlated with stocks and bonds.
Sources of
return
Agroindustrial Acaray Sociedad Anónima seeks to generate an
attractive yield for investors through the purchase and management of highly
productive farmland. The revenue is provided by leasing producing properties
with proven and capable.
There are mainly two means if you purchased a ranch
formed with all infraestruturas and facilities required figure Lease
Capitalization or both are provided for in the law 2421/04 IMAGRO Taxes on
agricultural activities
And for the fields suitable for soybean cultivation
agricultural Sharecropping which can set an annual amount, or production, for
example the value of half a ton of soybeans per hectare.
The models of the three contracts will be described in
other materials.
In addition to current income, a major component of
the total return is the appreciation in the value of the properties to be in
the pipeline.
Agroindustrial Acaray Sociedad Anónima seeks to achieve the
highest revenue production of each land that is in line with long-term
enrichment of the value of the estate.
Company Profile
Agroindustrial Acaray Sociedad Anónima is a corporation
established to serve as investment manager and take the general direction of
ranches, fields, farms, forests of the new owner who is our investor. Agroindustrial Acaray Sociedad Anónima manages and has a portfolio of properties, for lease, or
waiting for future sale.
It is a diversified agricultural portfolio, oriented
Paraguay farmland. The property acquired is the exclusive property of its
investors and generate current income yields, and the appreciation in the value
of your property.
Features tour of
the company include:
- We manage a diversified portfolio of farmland
- Assembly, structuring Paraguay Investment Trusts
(SA) vehicle for investment in land. Multiple benefits.
- Agricultural leases on behalf of the owners of
several years with staggered maturities and hire diversified structures.
- Total transparency for investors, including the
audited financial statements of income.
- Performs general meeting of shareholders, board
memory.
VARIOUS
INVESTORS IN A S.A. (Inc. Plc)
In the event that individual investors do not have
enough capital to buy a farm Farmland
Partners SA Paraguay has as collective investment strategy through Anónimas
Company, where different investors contribute capital to
the SA as shareholders, and once that integrates the necessary capital for the
purchase of an estate, investment takes shape
Each investor shares in the revenue generated by these
exploitations, and the appreciation of the properties "value proportional
to the amount of their capital investment. The benefit to investors is that
they share the benefits of a diversified portfolio managed farmland provides
unbiased high current income, significant growth and low correlation to
traditional asset classes.
Apart from financial models,
how to evaluate the quality of a land?
We look at the soil types, soil slope, height,
percentage of acres arable and design fields. We try to maximize acres arable
and buy farms with minimum slope because these issues are incorrigible.
However, we advise purchasing farms in different soil types and elevation, as
they can still be productive farms, is just a matter of the price you will pay
to buy and what to produce income.
How do you determine the quality of soil, crop type
most appropriate for the country, and the potential efficiencies that can be
achieved?
We examined soil data at the Faculty of Agricultural
Sciences gives the percentage of all soils we carry, analyzing its ability to
yield of corn, soybean and wheat.
If grain-producing land, or
livestock production fields to have a positive, why they decide to sell it?
Rarely a farmer bought existing properties. Generally
we are buying agricultural land of the widow or other relative who has
inherited and has no interest in agriculture, of the successors, of people who have
been adjudicated during the Stroessner dictatorship of former Rural Welfare
Institute (IBR) Institute of Rural Development today (INDERT). that until now
are unproductive, they have acquired bargain prices, and are now offering to
market price, that with our sound advice the investor can buy at undervalued.
It is an generational shift that is occurring and that time is running out
agricultural land ownershipthat this beginning to focus in large enterprises.
What do you think global
macroeconomic factors are driving the demand for raw materials and agricultural
land?
There are four global macro events occurring, which
led us to invest in farmland originally and are still driving factors: (1)
"demand" for food from the growing middle class in Asia and emerging
markets, (2) the biofuels, (3) the depletion of arable land for agricultural
production, and (4) resurgent inflation .... in this order. Experts in the
field of commodities underestimate the global demand for food and will increase
grain exports South America. The growing middle class in emerging economies
want to eat like Americans as people improve their standard of living, one of
the first things they want to do is improve your diet which means eating more
protein. 0.91 It is intended kilograms of grain to produce 1 kilo of chicken,
1.81 kilograms of grain for every 0.45 pounds of pork and 3.18 kilograms of
grain to produce 1 kilo of beef. China is already the largest consumer of pork
and soybeans in the world, it also became a net importer of corn in May 2008.
Moreover, as the dollar weakens against the Chinese yuan, our exports are
cheaper in local currency and Chinese demand will increase our food products.
What if the ethanol is no
longer pushed by the U.S. federal government and is replaced by natural gas or
electricity?
A: Ethanol is just one alternative energy source that
is needed to satisfy global demands for energy expansion. Corn-based ethanol is
not the panacea for our energy needs, but also has positive attributes of the
press has focused in recent times. For example, ethanol produces a byproduct,
barley grains, a high protein source and the remaining animals were used to
feed cattle, but rarely included in the economics of ethanol. The efficiency of
corn-based ethanol is improving exponentially as time passes, that is revealed
in a recent study published in the Journal of Industrial Ecology. As time
passes, the technology will allow the addition of cellulosic biofuels made from
millet, corn stalks or other fibrous raw food, but still needed farmland and
farmers to plant, maintain and harvest alternative crops.
How to decide to pay for
agricultural land prices?
In general terms Paraguay Farmland Partners SA pay
less land per hectare than other farms in the same areas. This is due to the fact
that the properties are often brought to our attention by our network before
they are officially listed with a real estate agent. Finally, sometimes we buy
a large tract of farmland to a lower overall cost compared to someone who is
willing to pay a higher price for a small plot inside this the same, a
concession is granted to the purchaser to large scale through our strategy of
integrating collective investment in capital and shareholder of a SA (Inc.Plc)
that has the same objective for all investors.
Investors are buying
Paraguay portfolio fields Farmland Partners.
Investors are buying existing diversified portfolio of
Paraguay Farmland Partners SA properties that currently consisting of over
100,000 ha and sprawling with each new investor and each offer received.
What is the objective
universe invertible in the land? It's just the largest lands an appropriate
setting for this type of portfolio?
The objective universe consists of millions of
hectares of primordial farmland in Paraguay. We continue our acquisition
strategy, which is buying with values ranging from 100 ha farms more than 1,000 ha. The
attractive land acquisition opportunities are not limited only to larger farms.
We see no problem of capacity in terms of the potential agricultural investments
or acquisitions. Our relationships and reputation building and habilitation in
the Paraguayan Chaco and partners allows us to gain access to a growing number
undervalued the best offers for buying opportunities farmland.
Can you explain what happens
in tax matters, if the value of assets wise increases each year, but no
withdrawals?
Investors are not exposed directly to the treasury,
since they incorporate the SA (Inc. Plc) and this face as a legal entity tax
liability if the land use is affected by the IMAGRO (income tax farming) by use
of capital, labor and land, and if the land is leased, is taxpayer IRACIS stays
Income Tax Industrial and Commercial Activities Services generally will be
income tax liability for a year for the lease, but there are some things such
as depreciation of irrigation equipment and other improvements that will serve
to reduce tax liability, there are many deductible expenses provided by law
2421/04, which our team will take care of qualified public accountants for that
matter. The gains from the appreciation of land value may be taxed only when
the property is sold and this will generally be capital gains in the long term,
considering that in Paraguay the transfer amount is 1.5% of the fiscal value
established by the Ministry of Economy and is the lowest in the region and not
to corde market value and is compared infima normally transfer amounts is
undervalued so avoid paying high taxes, attention is "avoid" is not
that to "evade" this because the law provides so. For example:
10,000 hectares in Alto Paraguay (Chaco)
market value of $ 4,000,000
taxable value established by National Registry of the
Ministry of Economy U.S. $ 150,000
Transfer tax is paid over U.S. $ 150,000, because
that's what they normally do appear in the title, but if the investor wants to
figure the amount of the market value will pay about U.S. $ 4,000,000
But here's our grand strategy, as the field stay
or buy on behalf of the SA (Inc. Plc), and the sole object of the SA is the
investment in land for subsequent sale, sold 100% of the shares, and the
farmland is transferred including the SA at the hands of new investors, so our
sale will be more competitive in a few decades when it decides to sell, the new
buyers as a society will have available, and we project that by then the
ministry of economy and update its price to the values market, if it will be
higher then the amounts payable by the transfer, and also with the removal and
sale of the SA, the initial investor will put another higher price to the SA
for its age, path, name and key, which will be additional income and amortize
their initial outlay.
Beyond this brief summary, investors may speak,
consult with our lawyer / tax advisor at no charge.
Can you produce a
significant decrease in the value of farmland? What is the probability that
this decrease will occur?
The value of land is directly affected by the amount
of income that can be produced on that land. Currently the supply of soybeans
and meat and demand is in favor of farmers, ranchers and landowners, and
foreign demand for food and domestic demand are out of stock, they will support
or apply upward pressure on prices in the coming years. However, if nothing
dramatically alters the balance of supply and demand, which will impact on land
prices. For example, if latent protectionist rhetoric is increased to a point
where international trade is affected materially, then this could cause a
disruption in demand that could lead to a decrease in agricultural land values. But this situation of low probability and even if it
does, a drop seen in mid-1980 is not expected because farmers are in a much
better position economically with low levels of debt.
If you're
considering investment in farmland, we invite you to contact us today contact: luisaguilera@bancarios.com