Farmland Acquisition Appraisal

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Production regions evaluation

We have more than 20 years of experience in the evaluation of the economic potential of agricultural production regions, and in the appraisal of productive potential and valuation of farmland on approximately 350.000 hectares, in the following countries and regions:

Argentina: Pampa and Chaco regions.

Brazil: Centro Oeste region (Mato Grosso), Nordeste region (Maranhao, Tocantins, Piauí, Bahía, Pará).

Paraguay: Chaco and Oriental regions.

Uruguay: Litoral and Nordeste regions.

Bolivia: Santa Cruz region.

Colombia: Llanos Orientales region.

Our regional perspective enables us to help our clients focus their search for farmland according to the return / risk profile desired, and also to assist them in their decision making process related to farmland acquisition opportunities.

Appraisal methodology

Cumulative experience has allowed us to adjust a farmland valuation methodology based on the following components:

Estimation of productive potential by GIS satellite image analysis, targeted soil sampling, and integrated climate, soil and water balance parameters analysis.

Definition of baseline production model.

CapEx and OpEx estimation.

Identification of commercial, logistics, technological, regulatory, legal, and tax related variables which may impact cash flows.

Estimation of upside potential in farmland value considering several likely production and market scenarios, at different arbitrage cap rates.

Discounted cash flow valuation. Risk / return profile.

We can also assist our clients during the negotiation process, and with the productive, legal and environmental due diligence.

Please get in contact with Alejandro Bustamante for further details or for talking about any initiative you may have in connection with this topic.