Agribusiness is pushing farmland prices higher and scaring politicians in its search for returns. Some operators are broadening their geographies.
Farmland in Latin America has become a hot investment in
recent years, pushing land prices in Brazil and Argentina to
unforeseen heights. Agribusiness companies in the region are
now facing the daunting obstacle of increased state regulation
over the ownership of prized farmland. Argentina’s
President Cristina Kirchner last year issued new regulations
that limit the amount of farmland foreigners can control.
Brazil is following suit, and this year politicians are set to
determine what will happen to the market for Brazilian
farmland, a decision that will directly impact publicly-traded
agribusiness companies. Large farming operations such as
Adecoagro, BrasilAgro, and SLC Agrícola are all relative
newcomers to the capital markets, having listed their shares
within the last six years. All of them have made a business out
of buying large tracts of land, developing it into farmland and
selling it later at much higher prices. The visible hand of
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.