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.
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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