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Ag Land
Considerations When Buying Farms & Ranches in Brazil |
Updated:
16-Jul-10
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Consulting, Investing and Guide Services |
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 Our main goal on this site is to offer Guide and Consulting services for those
interested in Brazil. This can range from, an infra-structure
tour for the 1st timer to
Brazil, to an in-depth Ag business tour focusing on setting up a project
in Brazil. This can include meetings with CEO´s of companies, law offices,
accountants, and various government agencies and banks.
If one is to assimilate into the Brazil business culture, one must spend some
time in Brazil. One must invest the time in learning the language and
understanding the culture in order to “fit in” and have a chance at being
successful. This is where an experienced consultant can be invaluable when
trying to separate the Wheat from the Chaff.
In my experiences with American producers that have come to Brazil to see the new
frontier and look at land, I find that my knowledge of
modern day commercial agriculture in USA is very much appreciated. Many
guides do a better job than I of translating Portuguese data into English.
However, from my
farm management
experience in Minnesota, I am able to quickly convey the 2nd level of
the language barrier. We now need to translate the units of measure into
“dollars per acre”, “cents per pound”, “ounces per acre”.
There are no guarantees in Brazil. Yes, Brazil has much upside potential in many
areas. I feel it is my duty to present the client with the potential for
“what could go wrong?” possibilities of doing business here.
If you are interested in more info regarding land for sale or other
opportunities in Brazil, please send me an
. I
have a lot of
information in my archives that I do not put on the website.
Kory Melby
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American Sells Mato
Grosso Farm
17 Jun 10 |
I had breakfast
this morning with an American producer from Mato Grosso.
He had developed
Cerrado land
over the past 15 years.
He has just sold his farm for 280 sacs of soybeans per hectare.
35% down and then 2 more payments over the next 2 years.
A Brazilian bought the farm.
280 sacs X 15 dollars
per sac = US$ 4200 per hectare or US$ 1700 per acre.
The average soybean
yield on this farm in 2010 was 60 sacs. This is about 55 bushel per
acre.
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He was a bit sad because
they had put a lot of blood, sweat and tears into this land.
However, from a financial perspective, the sale will set them up
nicely for next phase in life.
Given that this land
borders the environmental sensitive regions of the state, I find
this sale a positive sign as per Mato Grosso land prices. I have
heard of several sales in recent weeks. The land market is firm.
I am working on July
newsletter now. It
will include some recent land prices in new areas of Brazil.
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Jun |
16 |
Land prices up 14% this
year, 47% in three years in
Goiás vs 4.3% and 30.4%
nationwide. Average
price of Ha is R$ 4,538 in
Goiás |
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