Monday, 12 November 2012

The Benefits of Choosing Argentina for Farmland Investment




Using farmland as a form of investment is becoming increasingly popular. Not only does such a step move away from the traditional investments that can be so severely impacted by changes in the stock market, but with the global population rising, the demand for food is only set to grow.

Why Argentina?

Though many areas of the world already enjoy significant investment in their farming industry, Argentina still has the capacity for further exploitation of the potential that this type of financial opportunity can provide. In fact, of the 60,000 hectares that are owned by the International Food and Water Energy Group in Argentina, only 28,000 are currently productive whilst further funds are raised. This provides an outstanding opportunity for individuals who wish to place their funds in such an investment to participate in a financial prospect that is set to soar over coming years.

The Potential for Growth

As the climate in Argentina is so suitable for effective farming, the country actually enjoys two harvests per year, making the investment opportunity here far greater in a shorter space of time that in some other less ideal countries. In addition, the rising demand for the products that are gown means that a high proportion of the crops are actually pre-sold before they are even planted, offering an underlying confidence in return that other sectors simply cannot provide. And though the international farm development plan has yet to achieve its full potential within Argentina, the agricultural sector in this South American country is well established with areas of expertise that will ensure future investment in the land is maximised.

Return on Investment

Since such a vehicle was introduced in 2007 over $10m has been paid to investors. For a five year investment plan, this equates to yearly payments between 9% and 12% with a final payment of 15% on the return of the initial sum, creating an ROI in just 5 years of 66%. Furthermore, longer 10 year investors have enjoyed ROI of up to 160% on their capital from annual returns of up to 15% and a final 40% payment when the FWE buy the land back. As all investment is carried out in tangible assets, each investor also holds the title of the land into which they have placed their funds for the duration of the opportunity. This provides a more solid, physical assets and further confidence in the security of the investment as a whole.

Flexible Investment Opportunities

With a minimum investment threshold of just £12,000 farmland in Argentina is the ideal opportunity for both medium and long term investment portfolios. It can be used as part of a much wider balance sheet of investments to spread overall risk or could be the ideal single opportunity for someone wishing to grow their nest egg for their own or their family's future. Farmland Investment opportunities can also be included in both SIPP and SASS pension funds creating an effective and environmentally friendly way of maximising a pension portfolio in anticipation of retirement.

2 comments:

  1. Wow !!! this is the really great informative blog post investment because as the global population is increasing, the demand for food grain production is increasing. Farmland investment allows governments to promote investment in the sector of agriculture and regulate food grain production to prevent food crisis.
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