Rice, wheat and soy, major Uruguayan agricultural products, had raised farmland prices as the price those commodities soared.
Transactions clearing had mostly to do with land producing these commodities or money looking for safe havens, given the world financial crisis. For this reason, leasing farmland has been popular.
Prime Uruguay farmland for agricultural production costs about 6.000 USD / hectare.
Farm rentals is usually paid for out of agricultural production – a percentage of the yield. Uruguay farms can yield between 500 to 900 kilorams of soybeans per hectare..
Sales of Uruguay real estate for other important crops, including rice, forestry and cattle, conditions tend to be similar. In the rice industry land sales are way down.
“There were rumours of a massive influx of Argentines along their border, but this never materialized”, said Alejandro Zambrano, a farmland broker.
The best farmland costs 5.000 US dollars a hectare; land for breeding cattle, between 2.500 and 3.000 US dollars.
“Farmland sales have dropped considerable and now average 4 or 5 per month. This however does not mean that there’s not an interest; on the contrary the demand is there but there’s a 15 to 20% gap between selling and buying prices”, said Eduardo Caldeyro from a rural estate broker.
While transactions dry up, it’s unclear who will give on price to bring the bidders and asking prices together. However, if history is any guide, the smart money is on the bidders.
Uruguay Farm Land
Rice, wheat and soy, major Uruguayan agricultural products, had raised farmland prices as the price those commodities soared.
Transactions clearing had mostly to do with land producing these commodities or money looking for safe havens, given the world financial crisis. For this reason, leasing farmland has been popular.
Prime Uruguay farmland for agricultural production costs about 6.000 USD / hectare.
Farm rentals is usually paid for out of agricultural production – a percentage of the yield. Uruguay farms can yield between 500 to 900 kilorams of soybeans per hectare..
Sales of Uruguay real estate for other important crops, including rice, forestry and cattle, conditions tend to be similar. In the rice industry land sales are way down.
“There were rumours of a massive influx of Argentines along their border, but this never materialized”, said Alejandro Zambrano, a farmland broker.
The best farmland costs 5.000 US dollars a hectare; land for breeding cattle, between 2.500 and 3.000 US dollars.
“Farmland sales have dropped considerable and now average 4 or 5 per month. This however does not mean that there’s not an interest; on the contrary the demand is there but there’s a 15 to 20% gap between selling and buying prices”, said Eduardo Caldeyro from a rural estate broker.
While transactions dry up, it’s unclear who will give on price to bring the bidders and asking prices together. However, if history is any guide, the smart money is on the bidders.