Investing in farm land in Argentina: through www.agro-terra.com

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Traffic

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My Dad is a farmer and is thinking of investing in land in Aregentina through the following company:



Anyone have any opinions on investing in agricultural land in Argentina?

And yes it would be a long way to go to spray the crops:)
 
Re: Investing in Farm Land in Argentina

Is the Argentina government and econmic system not still very unstable?
 
Re: Investing in Farm Land in Argentina

I've heard anecdotal evidence (sorry no hard facts!) that Argentina farmland has appreciated hugely in the last few years. There was a lot of investment when the Peso took a nose dive about 5 years ago.
 
Re: Investing in Farm Land in Argentina

The inflation in the economy is caused by Agflation or agricultural inflation. Basically wheat, beef, pork bellies and commodities are in the middle of a super cycle. Especially wheat and or any derivative used to make oil – sugar cane etc. The price of farm land is set to go through the roof. It is the only foreseeable, property growth area in the States. I have heard that one of the slickest city boys in London James Ferguson bought 29,000 acres in Argentina so it must be safe. A lot of major funds are following suit on the back of the super cycle and buying agricultural land – i.e. in the billions of dollars. Should any one be able to buy and mange farmland like this as suggested for Argentina then a serious killing will be made. If I had the dosh I’d buy around Des Moines in the USA, prices for agric land are up 19% but it is the farmland provider of the American Economy.
 
Re: Investing in Farm Land in Argentina

MichaelDes said:
The inflation in the economy is caused by Agflation or agricultural inflation. Basically wheat, beef, pork bellies and commodities are in the middle of a super cycle. Especially wheat and or any derivative used to make oil – sugar cane etc. The price of farm land is set to go through the roof. It is the only foreseeable, property growth area in the States. I have heard that one of the slickest city boys in London James Ferguson bought 29,000 acres in Argentina so it must be safe. A lot of major funds are following suit on the back of the super cycle and buying agricultural land – i.e. in the billions of dollars. Should any one be able to buy and mange farmland like this as suggested for Argentina then a serious killing will be made. If I had the dosh I’d buy around Des Moines in the USA, prices for agric land are up 19% but it is the farmland provider of the American Economy.
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Wow, very interesting, can you give a little more information to why a super cycle would happen?
 
Re: Investing in Farm Land in Argentina

ein said:
Wow, very interesting, can you give a little more information to why a super cycle would happen?
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Yes - a super cycle is an upward trend that should continue for at least the next 10 to 15 years. I know, most would say you can not forecast beyond the next week for any market. But that is what many hedge funds and private investment firms are referring to as a super cycle and are buying large tracts of land in Argentina, Australia, America etc by the 10,000's of acres. Oil is a prime example of a super cycle because it is a diminishing resource, similarly land is being used to cultivate oil that is corn, rapeseed etc. This is also now being subsidised by the American government and the number of new corn extraction companies in America has gone through the roof. Therefore farmers in the Mid West of USA are producing oil crops at subsidised rates that are not going to food production - hence the price of tortilla flour in Mexico has doubled and led to riots. The oil for cultivation especially is a no brainier for corn as for every unit of oil cost to cultivate results in 0.6 of a unit of oil, whilst for sweet crude for every unit of oil cost to cultivate results in 30 units of oil - some bio's work on a ratio of 1:6. So basically with this pressure and the Chinese and Indians (massive growing economies) wanting to eat more beef (cows need wheat to eat) mean’s that worldwide inventories of all soft commodity stocks are historically low.

Therefore in the short to medium term unless we stop fooling with the bio-fuel argument and/or insist the Chinese and Indian stop eating western style foods then these prices are going to keep rising.

Hence agricultural land is a prime investment for hedges funds as it can be leveraged. Until hydrogen in cars and common utility use is taken seriously in about 2020 then this trend will unfortunately continue.
 
Re: Investing in farm land in Argentina

Traffic said:
My Dad is a farmer and is thinking of investing in land in Aregentina through the following company:



Anyone have any opinions on investing in agricultural land in Argentina?

And yes it would be a long way to go to spray the crops:)
Click to expand...

Looked at their website...seems very interesting. Be sure they have a history and good experience in the sector rather than being just a slick PR company with high charges and being intermediaries for some other company:)
 
Re: Investing in Farm Land in Argentina

MichaelDes said:
Yes - a super cycle is an upward trend that should continue for at least the next 10 to 15 years. I know, most would say you can not forecast beyond the next week for any market. But that is what many hedge funds are referring to as a super cycle and are buying large tracts of land in Argentina, Australia, America etc by the 10,000's of acres. Oil is a prime example of a super cycle because it is a diminishing resource, similarly land is being used to cultivate oil that is corn, rapeseed etc. This is also now being subsidised by the American government and the number of new corn extraction companies in America has gone through the roof. Therefore farmers in the Mid West of USA are producing oil crops at subsidised rates that are not going to food production - hence the price of tortilla flour in Mexico has doubled and led to riots. The oil for cultivation especially is a no brainier - for every unit of oil cost to cultivate results in 0.6 of a unit of oil, whilst for sweet crude for every unit of oil cost to cultivate results in 30 units of oil - some bio's work on a ratio of 1:6. So basically with this pressure and the Chinese and Indians (massive growing economies) wanting to eat more beef (cows need wheat to eat) mean’s that worldwide inventories of all soft commodity stocks are historically low.

Therefore in the short to medium term unless we stop fooling with the bio-fuel argument and/or insist the Chinese and Indian stop eating western style foods then these prices are going to keep rising.

Hence agricultural land is a prime investment for hedges funds as it can be leveraged. Until hydrogen in cars and common utility use is taken seriously in about 2020 then this trend will unfortunately continue.
Click to expand...

The hedge funds are not the best source to follow judging by their poor decisions recently
 
Re: Investing in Farm Land in Argentina

MichaelDes said:
Yes - a super cycle is an upward trend that should continue for at least the next 10 to 15 years. I know, most would say you can not forecast beyond the next week for any market. But that is what many hedge funds are referring to as a super cycle and are buying large tracts of land in Argentina, Australia, America etc by the 10,000's of acres. Oil is a prime example of a super cycle because it is a diminishing resource, similarly land is being used to cultivate oil that is corn, rapeseed etc. This is also now being subsidised by the American government and the number of new corn extraction companies in America has gone through the roof. Therefore farmers in the Mid West of USA are producing oil crops at subsidised rates that are not going to food production - hence the price of tortilla flour in Mexico has doubled and led to riots. The oil for cultivation especially is a no brainier - for every unit of oil cost to cultivate results in 0.6 of a unit of oil, whilst for sweet crude for every unit of oil cost to cultivate results in 30 units of oil - some bio's work on a ratio of 1:6. So basically with this pressure and the Chinese and Indians (massive growing economies) wanting to eat more beef (cows need wheat to eat) mean’s that worldwide inventories of all soft commodity stocks are historically low.

Therefore in the short to medium term unless we stop fooling with the bio-fuel argument and/or insist the Chinese and Indian stop eating western style foods then these prices are going to keep rising.

Hence agricultural land is a prime investment for hedges funds as it can be leveraged. Until hydrogen in cars and common utility use is taken seriously in about 2020 then this trend will unfortunately continue.
Click to expand...

hydrogen in cars? how does that work?
 
Re: Investing in Farm Land in Argentina

MichaelDes said:
Yes - a super cycle is an upward trend that should continue for at least the next 10 to 15 years. I know, most would say you can not forecast beyond the next week for any market. But that is what many hedge funds are referring to as a super cycle and are buying large tracts of land in Argentina, Australia, America etc by the 10,000's of acres. Oil is a prime example of a super cycle because it is a diminishing resource, similarly land is being used to cultivate oil that is corn, rapeseed etc. This is also now being subsidised by the American government and the number of new corn extraction companies in America has gone through the roof. Therefore farmers in the Mid West of USA are producing oil crops at subsidised rates that are not going to food production - hence the price of tortilla flour in Mexico has doubled and led to riots. The oil for cultivation especially is a no brainier - for every unit of oil cost to cultivate results in 0.6 of a unit of oil, whilst for sweet crude for every unit of oil cost to cultivate results in 30 units of oil - some bio's work on a ratio of 1:6. So basically with this pressure and the Chinese and Indians (massive growing economies) wanting to eat more beef (cows need wheat to eat) mean’s that worldwide inventories of all soft commodity stocks are historically low.

Therefore in the short to medium term unless we stop fooling with the bio-fuel argument and/or insist the Chinese and Indian stop eating western style foods then these prices are going to keep rising.

Hence agricultural land is a prime investment for hedges funds as it can be leveraged. Until hydrogen in cars and common utility use is taken seriously in about 2020 then this trend will unfortunately continue.
Click to expand...

Very intresting, do you work in economic's?
 
Re: Investing in Farm Land in Argentina

ubiquitous said:
If it sounds too good to be true, then...
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You are right, it is the devil curse to predict with confidence. But you know the way market works. Most of the time - private funds make the money first in new markets then the ordinary investors normally pile in whilst they are getting out (The dot.com bubble being a prime example). I'm just pointing out where they are headed for growth at the minute. I challenge anyone to find evidence contrary to Agricultural land rising steeply in value - albeit before you mention Austrailia because it ain't got no more water and the population unsettled about farmers taking 60% of the supply.

Finally commentor correct - Hedge funds are not always right. Hydrogen cars- apparently a could be (try your search engine- Wikapedia for example).

Hydrogen vehicle refers to a personal transportation vehicle, such as an automobile, that uses hydrogen as its on-board fuel for motive power, but can also refer to other vehicles, such as an aircraft, that use hydrogen in a similar fashion. The power plants of such vehicles convert the chemical energy of hydrogen to mechanical energy (torque) in one of two methods: electrochemical conversion in a fuel-cell or combustion :
  • In combustion, the hydrogen is burned in engines in fundamentally the same method as traditional gasoline cars.
  • In fuel-cell conversion, the hydrogen is reacted with oxygen to produce water and electricity, the latter of which is used to power an electric traction motor.
Corns bio is a no brainer - challenge anyone to argue it is - ratio 1:.0.6
 
Re: Investing in Farm Land in Argentina

ein said:
Very intresting, do you work in economic's?
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Ein,

I hope some of this helps...unfortunately I don't work in economics nor I am a timelord (from the future) but I have studied the subject. As I manage my own portfolio - I watch all area's of investment world very closely and look out for markets with strong fundamentals in the early stages of growth. Well done on coming across Argentina - you are well ahead of the curve. Where did you hear about it originally? Before you invest with the crowd in Dublin, check out others doing the same. There are bound to be loads of private funds in the UK etc that will be all denominated in dollars anyway (great time to take advantage of the low dollar versus euro).
 
Traffic said:
My Dad is a farmer and is thinking of investing in land in Aregentina through the following company:



Anyone have any opinions on investing in agricultural land in Argentina?

And yes it would be a long way to go to spray the crops:)
Click to expand...


I hope some of this helps...unfortunately I don't work in economics nor I am a timelord (from the future) but I have studied the subject. As I manage my own portfolio - I watch all area's of investment world very closely and look out for markets with strong fundamentals in the early stages of growth. Well done on coming across Argentina - you are well ahead of the curve. Where did you hear about it originally? Before you invest with the crowd in Dublin, check out others doing the same. There are bound to be loads of private funds in the UK etc that will be all denominated in dollars anyway (great time to take advantage of the low dollar versus euro).

Quoted to the wrong person (EIN).

Where did your Dad come across the Idea? Sorry Ein...thought it was your post.
 
Re: Investing in Farm Land in Argentina

MichaelDes said:
As I manage my own portfolio - I watch all area's of investment world very closely and look out for markets with strong fundamentals in the early stages of growth.
Click to expand...

MichaelDes,

Other than agricultural land in Argentina, are there any other countries that you would be looking at with a view to investment in commercial or residential property?
 
Re: Investing in Farm Land in Argentina

F. Kruger said:
MichaelDes,

Other than agricultural land in Argentina, are there any other countries that you would be looking at with a view to investment in commercial or residential property?
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Hi Kruger,

It's difficult to say given the difficult environment ahead for credit markets. There has to be opportunities in the States given the dollar differential. Certain area's there have been hammered such as Florida, California whilst others like Manhattan do not seem to be as affected. There must be value presently in the right spots. Somewhere like Detroit is so bad at the moment there will have to be investment similar to the Southie in Boston. But I am not an expert on American property.

My hunch is always, if a market is down but the economy is strong then there is opportunity. Mind you a lot can change in months...12 months ago I was bullish on Japanese property especially outside Tokyo (to expensive) Fukuoka was of interest because it's half the price, but the Japanese economy still looks fairly sluggish and a long way of a bounce. Also its government & BOJ is restricting credit lines to its citizens to avoid another 80's relapse.

These eastern European countries, Dubai etc have been done to death and there is no value so in my opinion avoid at all costs. Germany in my opinion still has a big upside as real estate investment trusts should be in operation by 2009. This will add lots of liquidity to the market. Also it is one of the few Euro zone countries to remain competitive and will take advantage in terms of exports, as the Indian and Chinese economies develop. Their goods are generally regarded as high quality. Although in Germany commercial is better than residential due to strict tenancy laws. Hope this helps…
 
Traffic - do you know anyone who has invested with Agro Terra Ltd? Be interesting to see how the investment details...
 
It claims to be administered by a reputa ble fund services company in Ireland but the min investemtn is $500,000 according to the website and with that size of investment there a re alot of funds around that are alot more established
 
Qawra said:
It claims to be administered by a reputa ble fund services company in Ireland but the min investemtn is $500,000 according to the website and with that size of investment there a re alot of funds around that are alot more established
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I personally would not trust $500k in anyone’s hands (not even my own). There are many other ways to play this market for a lot less - that is through buying in to an agricultural fund (I have the names of a few good ones - but it would be unfair to mention) or else agricultural stocks (especially dollar based) or else an ETF in soft commodities or Grains etc.
 
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