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Company specializing in direct investment in farmland and asset management.
Investment in farmland and operate cattle and crops farms.
We ensure the growth of their capital in agricultural land banking.
We investment structure gives the investor direct ownership including control over the
ultimate disposition of the asset.
OUR VISION:
Being a solid and reliable investment platform, advising on the successful purchase of
farmland
OUR MISSION:
We are a group of professionals offer investment opportunities conservative and
guaranteed cultivating customer satisfaction, ensuring profitable growth of your
investment through the efficiency of our human resources.
WHY WE OFFER THIS?
The production potential of Paraguay reflects the faith we have in our investment
products and our sufficient capacity to offer our customers opportunities to generate
wealth.
OUR ADVICE TO PURCHASE LAND IN PARAGUAY
- Expertise and legal inquiries on possible litigation.
- Study of property title, from the first to the current title,to avoid double degree
purchase land, and overlapping titles.
- Study the history of titles with Public Notaries
- Verify Ownership, corroborate coordinates described in the titles, know the
boundaries, landmarks based on an expert report.
- Request the (Registro Público del Paraguay)
a. Certificate of status and dominance of the farm
b. Certificate of interdiction not owners
- We have a turnkey corporation in reserve available to the investor as an investment
tool for the purchase of land, and develop productive activities in Paraguay avoiding
bureaucratic administrative procedures, and start trading immediately.
- To study the actual market prices to evaluate the bid price of the property under study
to achieve profitable investment.
- Analyze soil, climate, soil and are to conform to the agronomic requirements for
potential use in livestock or crops.
- Administration and operation of the farm.
- Turn on leasing the property to produce an annual income.
- Analyze the locations to avoid national reserves, parks, protected indigenous lands,
places of conflict.
- Use all the legal protections in order not to fall into unproductive latifundia, and meet
the agricultural status of Paraguay.
- Assessment and Environmental Impact Study before the development of the fields.
- Design and evaluation of investment projects.
- Advice on IMAGRO, Agricultural Activities Tax, taxation under which the investor
would.
- Structure and mount collective investment vehicles through a S.A. to integrate a
project several investors buying land.
Opportunity farmland in Paraguay
When we spoke to the potential investor interested in rural land and agricultural
livestock character. We do it with your feet on the ground.
We show figures and testimonies about the land market in the last 10 years,
for the investor to have an idea.
The revaluation of long-term land value seems safer than the profitability of the farms
themselves.
The farms are not always profitable, as a weather-dependent activity, an adverse
scenario drastically reduced projected profitability and being commoditie scenarios vary
according to the international price, although part of the income can be secured with
futures contracts.
Investing in farmland
If you are one those investors who are looking for a solid investment opportunity, you
may want to invest in farmland in Paraguay - South America. With the current state of
the economy, we are in the early stages of a bull market in terms of investment in
farmland and the environment of political stability makes this area the ideal place to
spend your money.
Making a long-term commitment Income.
When it comes to making investments, each individual knows that their long-term offer
the best chance for excellent performance. Make an investment in farmland is an
excellent long-term plan with a strong track record of success. In fact, over the past 15
years, farmland have exceeded the returns offered by stocks and bonds. At the same
time, investment in agricultural land is up to 60% less risky than investing in stocks and
bonds
REASONS TO INVEST NOW.
Realize an investment in farmland is a great way to generate money in the long term,
there is no better time than now. This is because the world is in a period when crop
demand is at its highest point. This is because the time has come when crops are used
for food, animal feed and fuel As the world population continues to grow, so does the
demand for food and farmland to cultivate them. Similarly, countries like China and
India are consuming large amounts of commodities, which means they have a growing
demand for animal feed. Of course, the increased focus on biofuels has also resulted in
an increased demand for crops.
With a high demand for commodities is reasonable demand for farmland may increase
proportionately. This is where the wisdom of investing in farmland can help an investor
to enjoy a quite satisfactory return relative to your initial investment.
Investment in farmland in Paraguay
Although there are many places where you can invest in farmland, Paraguay is an
excellent choice. This is because the land will have the following qualities:
∗ high quality soil
∗ Good infrastructure
∗ Some of the lowest prices per acre in the world.
∗ By combining high quality with low cost land, an investor can get from the start of the
investment and potentially enjoy significant rewards later.
∗ Paraguay is the 4th largest exporter of soybeans
∗ the 5th largest exporter of beef
∗ 1st perpetual organic sugar exporter
∗ 1st net energy exporter
∗ the 2nd world producer and exporter of Stevia
∗ the 2nd largest producer of tung
∗ the 3rd world fleet barge fleet (2200 units with 200 tugboats) after USA and China.
∗ the 4th largest exporter of charcoal
∗ the 4th largest exporter of cassava starch
* the 4th largest exporter of soybean oil
∗ the 5th largest exporter of soybean meal
∗ the 6th largest producer of soybeans
∗ the 8th World soybean industrialization
∗ the 6th World maize exported
∗ 10th largest exporter of wheat
∗ 11th largest exporter of silk yarn
∗ Agricultural production represents 27% of GDP
If you think you are ready to invest in farmland in Paraguay, be sure to work with a
company with experience in real estate and comprehensive knowledge as the legal, tax,
financial knowledge and international commodities markets, which will help make the
best decision possible. By working in close collaboration with a company that
specializes in the industry, you are sure to enjoy the fantastic results.
Why should I invest in farmland
If you are an investor or a short term long term, must be aware of the importance of real
estate and how meaningful it is to be in the long run.
Traditionally, investors waited for a long time to buy a property of cropland.
Many European investors waited, thought about it, and ultimately decided to invest in
the exact moment of 5-10 years ago and have obtained substantial gains today.
However, the situation has now changed, a greater number of people are interested in
agricultural investments.
As you know, the Chaco was and is one of the more accessible of the world and which
is excellent for livestock ed because their soils are rich in minerals. And eastern
agrologicamente excellent for the production of cereals and oilseed where excessively
high prices have experienced in the last three years.
Today the field of the western region is accessible, but the price increase within
decades. Then you will be happy for your sensible choice.
Many people wonder why they should invest in Paraguay, the main reason behind this is
the target market which is very attractive. Fields of the East and West Regions totaling
some 40 million hectares of these represent almost 70% to 80% of the arable land in
Paraguay. This shows why investors are choosing to Paraguay as the new place for
investment in farmland.
You can safely invest in farmland because a farm Chaco is a very stable and
conservative investment and future income generation will imminently profitable. It
also has protection against inflation. There are projects of meat processing industries
such as refrigerators, and facilities of the Mennonite colonies, Cooperatives and several
populated cities. Moreover, the price of each hectare is low, despite the recent increase.
Compared to other places in the prices of agricultural land, the Paraguay has annual
rainfall that meet the agronomic requirements, compared to Australia and Africa where
residual soils are selling and where no water or rain, Paraguay has one of the soil most
fertile in the world. Our Country, no restrictions on foreign sovereignty only by a
foreigner can not buy at 50 km from the border in a personal, so structured to make the
purchase with a corporation, therefore, you can buy a farm where want.
Earlier this decade, the main concerns were about the reconstruction and energy.
However, things have taken a different course and concern has shifted to food and
water. The cost of wheat, soybeans, corn, meat and other crops from the fields of
Paraguay are increasing, but offers the lowest prices of agricultural land in the whole of
South America. This makes the regions of Paraguay as attractive for investors from
around the world. Today investors can get better opportunities to buy farmland in
Paraguay, no worries.
On average, a farm in the Chaco is sold for around U.S. $ 350 - U.S. $ 700 per hectare.
Agricultural land will increase in the coming years around about U.S. $ 40 per hectare
will get a better picture of the rates when comparing prices with those of other
countries. Therefore, the benefit to agricultural investments in Paraguay is evident and
now is the time.
If you make investments in farmland, then you have nothing to lose. In fact, you will
make a lot of profit in the future with your new purchase because the price of land in the
Chaco up and stay up, because the borders will extend to agricultural livestock farm
because that's the trend observed and is reflected beef exports.
Capital investments in farmland long term
In investments (Agricultural LandBanking), investors are enjoying several years of
good returns and profits. As is the case with any form of investment, the main
characteristics of the investment market drives results, many current wealthy got their
fortune retiring with U.S. $ 10 to 15 million, venting his investment of 10-15 years ago
that initially conformed capital $ 500,000, when they had acquired 40,000 hectares
farms, valued at U.S. $ 10 per hectare with an initial capital of U.S. $ 400,000 today I
turned wastes of capital by selling to U.S. $ 350 per acre their farms getting substantial
profits
When looking at long-term investments, the potential capital growth in land investments
in Paraguay, are impressive growth rates, coupled with low risk.
Overall prices (farmland) have increased by up to 30% in the last 12 months and 130%
since the beginning of 2006 with an average growth of 920% in the last 10 years.
When looking investments for growth From Long Term Capital most individuals take
into account the mutual funds, mutual funds, stocks, bonds and hedge funds. However,
the fact is that the earth has had a better average growth with low volatility. This makes
the earth a solid capital allocation for low risk investor, conservative and conscious.
Having demonstrated that the investment of large institutional investors and
conservative gigantic bore fruit, the land market becomes exciting and is open to small
investors through our investment scheme as part of a corporation and investing from
this, since Hás small amounts are not sales and consolidate capital needed to acquire
large tracts interesting.
Why has so much potential farmland as an investment?
When looking at long-term investment and capital growth potential, we must look at the
supply and demand equation.
Land has all the ingredients for demand to exceed supply and prices of land increase in
value in the coming years.
The case of land in Paraguay is clear that of all the countries in the world to invest in
land, the Chaco is one of the most attractive for the following reasons.
 Soil with rangeland
 Freshwater, Yrenda aquifer, Rio Paraguay and others, see map hydrographic
 In the Chaco oil and gas are currently several companies in the area have concession
for exploration, exploitation and marketing
 The Chaco bioceanic contained within
 The prices are low, now is the time to buy
 Inelastic
 Legacy of Malthus to consider
 Project aqueduct
 shield against inflation
 High annual revaluation of land
 Natural wealth, wood, water
 rational extraction of forest products, charcoal, poles.
 green income, REDD, biodiversity conservation, draft foundations,
receive donations through sponsorships, create bank forest carbon footprints.
 Development Poles, Mennonite colony area where large industries, cooperatives,
banks, hotels, refrigerators, zootecnias, genetic technologies.
 Possible commercial development in the border of Bolivia.
 Tourism, many attractions being developed.
 The Paraguay River empties into the Río de la Plata, logistically interesting.
 For the future if given and kept the oil up, you can re-emphasize biofuels and
Jatropha plantations make adapting to Chaco.
 eoliths Park Development, Baltic photo.
 Low property tax.
 In the Chaco (Alto Paraguay) showed that it is possible to soybean cultivation.
Agricultural LandBanking.
The key to the growth of Long Term Capital simply involves the acquisition of virgin
forest land, who do not enjoy development, when generating the expansion of livestock
driven by the rise in meat prices and increased exports Paraguayan , the area
experienced changes such as road building, cold storage facilities, ports and an
immensity of value chain in about 10 years that raised the value of land.
The way to make big capital gains in the sector involves buying land in specific areas,
with the expected future development.
With the subsequent sale within 10 years, it is possible significant a capital gain.
Land Investments for growth in long-term Capital:
Good past performance with low risk and the prospect of good future capital growth,
makes investing in land obtain long-term growth an attractive option for all investors.
"Many people made their fortunes in this investment and you can too, is a proven
investment system that does not fail, success should be replicated, now is the time"
There is no better way to control the Low risk to build substantial capital gains long
term.
As Donald Trump once said:
"I love the Real Estate.'s Tangible, it's solid, and it's beautiful."
Howard Hughes was one that believed in investment in land as one of its high-yield
investments, he focused on the purchase of vast tracts of land under development in
California, who came to be worth billions.
Where is the best place to buy land?
Paraguay, and we emphasize in the Chaco land offering excellent low cost, low risk and
high return opportunity for investment in the medium term. Land Investments in Chaco,
has exceeded long-term profitability some asset managements systems offered abroad,
including mutual funds, pension funds, stocks and bonds.
Our investment proposal are solid, long-term benefits, the facts speak for themselves.
In general, land prices have risen Chaco up to 30% in the last 12 months and 130%
since early 2006 with an average growth of 920% in the last 10 years.
If you joined an investment with the purchase of an estate of 5,000 Hectares, in recent
years, the average growth you would get a return of more than $ 2 million in just 12
years!
Of course, no guarantee, but with the growth rates we've seen in the last 10 years the
gains are possible.
Paraguay is experiencing great changes, much growth, and now with a capitalist center-
right president, will be great progress in the productive sector, which pushed a herd
increased and hence farm developments that allow investors to sell with a significant
benefit their land over the years.
Today, international investors advise on how to take advantage of land in Paraguay.
We look at the best places and we emphasize all the facts, so that an investor can make
an informed decision about whether to invest. A typical minimum investment usually
starts with $ 1,000,000. -
With profitable return on investment and low risk.
The high return investments with low risk does not come around very often, but we
believe that farmland is an opportunity.
If you are considering high yield investments, the land is ideal for an investor looking
for long term you are looking for great capital growth potential.
Case studies on real history.
CASE A
Buy: May 2004
Size: 5.000 acres
Price: U.S. $ 25 per hectare Total $ 125,000
Location: Paraguay, Western Region, Paraguayan Chaco
Department of Boqueron, in Pozo Hondo
Fitness Floor: Area livestock production
05/25/2013 Market Quotation year
Price: U.S. $ 300. - Per hectare Total $ 1,500,000. -
Profitability:
1500000-125000 = U.S. $ 1.35 million profit
Time 9 years
(1,350,000 x 100) / 125,000 = 1,080%
120% annually
CASE B
Buy: January 2004
Area: 16,000 hectares
Price: U.S. $ 20 per hectare Total U.S. $ 320,000
Location: Paraguay, Western Region, Paraguayan Chaco
Department of Alto Paraguay, place the Gerenza
Fitness Floor: Area rangeland
05/25/2013 Market Quotation year
Price: U.S. $ 250. - Per hectare Total U.S. $ 4,000,000. -
Profitability:
4000000-320000 = U.S. $ 3.68 million profit
Time 9 years
(1,350,000 x 100) / 320,000 = 1,150%
127.777% annually
CASE C
Purchase: June 2003
Size: 4.000 acres
Price: U.S. $ 200 per hectare Total $ 800,000
Location: Paraguay, Eastern Region
Department of place San Alfredo Concepcion
Fitness Floor: Area livestock production
05/25/2013 Market Quotation year
Price: U.S. $ 1,200. - Per hectare Total U.S. $ 4.8 million. -
Profitability:
4800000-800000 = U.S. $ 4 million gain
Time 10 years
(4,000,000 x 100) / 800,000 = 500%
50% pa
CASE D
Buy: May 2010
Area: 15,000 hectares
Price: U.S. $ 270 per hectare Total U.S. $ 4,050,000
Location: Paraguay, Western Region, Paraguayan Chaco
Department of Boqueron, rather Route Ñ
Fitness Floor: Area livestock production
05/25/2013 Market Quotation year
Price: U.S. $ 500. - Per hectare Total U.S. $ 7.5 million. -
Profitability:
7500000-4050000 = U.S. $ 3.45 million profit
Time 3 years
(3,450,000 x 100) / 4,050,000 = 85%
28.39% pa
CASE F
Buy: May 2005
Size: 1.500 acres
Price: U.S. $ 2,000 per hectare Total $ 3,000,000
Location: Paraguay, Eastern Region
Department of Alto Paraná, place St. Albert
Floor Fitness: soybean production area
05/25/2013 Market Quotation year
Price: U.S. $ 5,500. - Per hectare Total U.S. $ 8,250,000. -
Profitability:
8250000-3000000 = U.S. $ 5.25 million profit
Time 8 years
(5,250,000 x 100) / 3,000,000 = 175%
21.875% per annum
"We are at your disposal, your interest is our interest, your success our success, we
are to offer good businesses"
Farmland is an attractive long-term investment that offers current income and capital
appreciation, as a hedge against inflation and diversification favorable and is negatively
correlated with traditional asset classes. With the development of capitalism, is
constantly increasing the price of land, which is due, firstly, to the tendency of the rate
of interest and on the other hand, the increase in land rent in all respects . The income
growth, in turn, is conditioned by the growing demand for agricultural products and the
expansion of cultivated land surfaces. The rising price of land means that productive
consumption is subtracted growing part of goodwill, some landlords do not use it
productively. In fact, since the end of World War farmland in the United States has
experienced a steady increase in value every year, but four (1983, '85-'87). Most
investors have experienced painful falls in the value of their portfolios lately, but those
who have an assignment on agricultural lands benefited from lower volatility and
positive returns to offset losses from other asset classes.
WELCOME TO PARAGUAY FARMLAND PARTNERS SA
In Paraguay Farmland Partners SA , Our goal is to identify, acquire and manage the best
agricultural land that Paraguay has to offer our investor clients. Paraguay Farmland
Partners SA performs these tasks for their investors, which beneficially acquire land
within a corporation own that we make available to each investor.
Paraguay Farmland Partners SA acts as general manager and uses its extensive network
of farmers and ranchers proven attractive for cash rent or crop share lease Paraguay
Farmland Partners SA has the best tenants, and want to improve the structure and rural
buildings to increase property values. Paraguay Farmland Partners SA strives to be
respectful of the land manager that manages and uses soil conservation techniques to the
greatest extent possible. We also seek alternative energy opportunities as feedstock for
biofuels production.
This document is designed to introduce investors and trading partners in the reality of
the land market, and so they can have a better understanding of the advantages Paraguay
Farmland Partners SA and the benefits of our investment strategy.
RATIONALE FOR INVESTING
Current Income
Lands revenues have consistently produced agricultural product sales between 15% and
25%, depending on the climate and the international prices of commodities, as well as
agricultural income.
Capital Appreciation
An important component of the total return on farmland is capital appreciation. As the
demand for agricultural products increases and the supply of arable land suitable for
agriculture decreases, there is a significant increase in the value of agricultural land.
Inflation Hedge
The land has a positive correlation with inflation and is considered a classic hedge
against inflation. In fact, many investors see as more favorable than other tangible assets
like gold, because farmland produce a positive cash flow while protecting the harmful
effects of inflation.
Diversification
The Farmland negatively correlated with traditional asset classes like stocks and bonds,
and is just a little correlated with commercial real estate. This provides the stability of
the portfolio during volatile markets while improving risk-adjusted return of a portfolio.
FUNDAMENTALS FAVORABLE
It predicts good benefits in land investment, macroeconomic fundamentals are favorable
and are about to increase farmland values in the coming years.
The demand for food
The world population continues to grow and is projected to increase from the current
6.7 billion to more than 9 billion in 2040. This increase in population will require
increasingagricultural production for food bastecer. In addition, as incomes rise in
emerging markets with large populations, there will be greater demand for a better diet
which usually means more meat. The raw meat requires more grain compared to grain
for direct human consumption. For example, one pound of beef requires seven pounds
ofgrain feedstock and a pound of chicken will need two pounds of grain.
The demand for alternative energy
Increasing awareness of global warming has led to an increased demand for alternative
energy sources, and the owners of agricultural land are in a unique position to benefit
from this development. Currently, the raw material for biofuels in the United States is
corn and soybeans for ethanol biodiesel production. The efficiency of corn-based
ethanol is improving exponentially as revealed in a recent study published in the Journal
of Industrial Ecology. Over time, the technology will allow the addition of cellulosic
biofuels made from millet, corn stalks or other fibrous raw food, but still needed
farmland and farmers to plant, maintain and harvest alternative crops. Moreover, the
recent interest in wind energy will lead to increased demand for land to locate wind
turbines.
The supply of arable land, able to provide all the optimal factors for agricultural crops is
limited, and in Paraguay supply is shrinking. In addition, global supplies of fresh water
for agricultural production are being rapidly depleted. The technological advances that
allow for higher yield of existing farmland helps the imbalance between supply, but
these advances also increase income per acre of existing farmland and therefore increase
its value.
INVESTMENT PHILOSOPHY
Paraguay Farmland Partners SA
Aims to provide the main service management and asset management purchase
agricultural investors who otherwise would not have access to this profitable asset class
is correlated with traditional assets. Paraguay Chaco Farmland Partners SA believes that
the best form of investment is through direct purchase by the property investor in
Paraguay, so to have a portfolio, which also allows investors to participate in land
revaluation gains.
Paraguay Farmland Partners SA believes that the purchase decision is critical and seeks
to identify undervalued properties that generate positive cash flows. The risk is reduced
when a property is bought at the right price with multiple sources of return. Paraguay
Farmland Partners SA also seeks to improve their farms thereby increasing the long
term value of the property and requires a higher rent. Paraguay Farmland Partners SA
actively manages each property, select a farmer proven its existing network of preferred
producers who want to expand as Paraguay Farmland Partners SA acquire more
farmland for their investors. The result is a partnership that benefits both the owner /
investor and producer.
VIEW
Paraguay Farmland Partners SA see a greater role for the land asset in the investment
portfolios of both individual and institutional. Revenues from production or lease lands
is particularly attractive because it provides annual income. The Farmland will benefit
from increased demand for grain, environmental demand of alternative energy and the
impact of globalization. The factors that will benefit farmland investments are:
- Global Demography food demand increases
- The increasing demand for protein by the Asian middle class
- Alternative Energy demand for ethanol, biodiesel and wind
- The decrease in the global supply of farmland
- Paraguay has a comparative advantage in agriculture
- Agriculture / Land correlated with stocks and bonds.
Sources of return
Paraguay Farmland Partners SA seeks to generate an attractive yield for investors
through the purchase and management of highly productive farmland. The revenue is
provided by leasing producing properties with proven and capable.
There are mainly two means if you purchased a ranch formed with all infraestruturas
and facilities required figure Lease Capitalization or both are provided for in the law
2421/04 IMAGRO Taxes on agricultural activities
And for the fields suitable for soybean cultivation agricultural Sharecropping which can
set an annual amount, or production, for example the value of half a ton of soybeans per
hectare.
The models of the three contracts will be described in other materials.
In addition to current income, a major component of the total return is the appreciation
in the value of the properties to be in the pipeline.
Paraguay Farmland Partners SA seeks to achieve the highest revenue production of each
land that is in line with long-term enrichment of the value of the estate.
Company Profile
Paraguay Farmland Partners SA is a corporation established to serve as investment
manager and take the general direction of ranches, fields, farms, forests of the new
owner who is our investor. Paraguay Farmland Partners SA manages and has a portfolio
of properties, for lease, or waiting for future sale.
It is a diversified agricultural portfolio, oriented Paraguay farmland. The property
acquired is the exclusive property of its investors and generate current income yields,
and the appreciation in the value of your property.
Features tour of the company include:
- We manage a diversified portfolio of farmland
- Assembly, structuring Paraguay Investment Trusts (SA) vehicle for investment in
land. Multiple benefits.
- Agricultural leases on behalf of the owners of several years with staggered maturities
and hire diversified structures.
- Total transparency for investors, including the audited financial statements of income.
- Performs general meeting of shareholders, board memory.
VARIOUS INVESTORS IN A S.A. (Inc. Plc)
In the event that individual investors do not have enough capital to buy a farm
Farmland Partners SA Paraguay has as collective investment strategy through
Anónimas Company, where different investors contribute capital to the SA as
shareholders, and once that integrates the necessary capital for the purchase of an estate,
investment takes shape
Each investor shares in the revenue generated by these exploitations, and the
appreciation of the properties "value proportional to the amount of their capital
investment. The benefit to investors is that they share the benefits of a diversified
portfolio managed farmland provides unbiased high current income, significant growth
and low correlation to traditional asset classes.
Apart from financial models, how to evaluate the quality of a land?
We look at the soil types, soil slope, height, percentage of acres arable and design fields.
We try to maximize acres arable and buy farms with minimum slope because these
issues are incorrigible. However, we advise purchasing farms in different soil types and
elevation, as they can still be productive farms, is just a matter of the price you will pay
to buy and what to produce income.
How do you determine the quality of soil, crop type most appropriate for the country,
and the potential efficiencies that can be achieved?
We examined soil data at the Faculty of Agricultural Sciences gives the percentage of
all soils we carry, analyzing its ability to yield of corn, soybean and wheat.
If grain-producing land, or livestock production fields to have a positive, why they
decide to sell it?
Rarely a farmer bought existing properties. Generally we are buying agricultural land of
the widow or other relative who has inherited and has no interest in agriculture, of the
successors, of people who have been adjudicated during the Stroessner dictatorship of
former Rural Welfare Institute (IBR) Institute of Rural Development today (INDERT).
that until now are unproductive, they have acquired bargain prices, and are now offering
to market price, that with our sound advice the investor can buy at undervalued. It is an
generational shift that is occurring and that time is running out agricultural land
ownershipthat this beginning to focus in large enterprises.
What do you think global macroeconomic factors are driving the demand for raw
materials and agricultural land?
There are four global macro events occurring, which led us to invest in farmland
originally and are still driving factors: (1) "demand" for food from the growing middle
class in Asia and emerging markets, (2) the biofuels, (3) the depletion of arable land for
agricultural production, and (4) resurgent inflation .... in this order. Experts in the field
of commodities underestimate the global demand for food and will increase grain
exports South America. The growing middle class in emerging economies want to eat
like Americans as people improve their standard of living, one of the first things they
want to do is improve your diet which means eating more protein. 0.91 It is intended
kilograms of grain to produce 1 kilo of chicken, 1.81 kilograms of grain for every 0.45
pounds of pork and 3.18 kilograms of grain to produce 1 kilo of beef. China is already
the largest consumer of pork and soybeans in the world, it also became a net importer of
corn in May 2008. Moreover, as the dollar weakens against the Chinese yuan, our
exports are cheaper in local currency and Chinese demand will increase our food
products.
What if the ethanol is no longer pushed by the U.S. federal government and is
replaced by natural gas or electricity?
A: Ethanol is just one alternative energy source that is needed to satisfy global demands
for energy expansion. Corn-based ethanol is not the panacea for our energy needs, but
also has positive attributes of the press has focused in recent times. For example,
ethanol produces a byproduct, barley grains, a high protein source and the remaining
animals were used to feed cattle, but rarely included in the economics of ethanol. The
efficiency of corn-based ethanol is improving exponentially as time passes, that is
revealed in a recent study published in the Journal of Industrial Ecology. As time
passes, the technology will allow the addition of cellulosic biofuels made from millet,
corn stalks or other fibrous raw food, but still needed farmland and farmers to plant,
maintain and harvest alternative crops.
How to decide to pay for agricultural land prices?
In general terms Paraguay Farmland Partners SA pay less land per hectare than other
farms in the same areas. This is due to the fact that the properties are often brought to
our attention by our network before they are officially listed with a real estate agent.
Finally, sometimes we buy a large tract of farmland to a lower overall cost compared to
someone who is willing to pay a higher price for a small plot inside this the same, a
concession is granted to the purchaser to large scale through our strategy of integrating
collective investment in capital and shareholder of a SA (Inc.Plc) that has the same
objective for all investors.
Investors are buying Paraguay portfolio fields Farmland Partners.
Investors are buying existing diversified portfolio of Paraguay Farmland Partners SA
properties that currently consisting of over 100,000 ha and sprawling with each new
investor and each offer received.
What is the objective universe invertible in the land? It's just the largest lands an
appropriate setting for this type of portfolio?
The objective universe consists of millions of hectares of primordial farmland in
Paraguay. We continue our acquisition strategy, which is buying with values ranging
from 100 ha farms more than 1,000 ha. The attractive land acquisition opportunities are
not limited only to larger farms. We see no problem of capacity in terms of the potential
agricultural investments or acquisitions. Our relationships and reputation building and
habilitation in the Paraguayan Chaco and partners allows us to gain access to a growing
number undervalued the best offers for buying opportunities farmland.
Can you explain what happens in tax matters, if the value of assets wise increases
each year, but no withdrawals?
Investors are not exposed directly to the treasury, since they incorporate the SA (Inc.
Plc) and this face as a legal entity tax liability if the land use is affected by the
IMAGRO (income tax farming) by use of capital, labor and land, and if the land is
leased, is taxpayer IRACIS stays Income Tax Industrial and Commercial Activities
Services generally will be income tax liability for a year for the lease, but there are
some things such as depreciation of irrigation equipment and other improvements that
will serve to reduce tax liability, there are many deductible expenses provided by law
2421/04, which our team will take care of qualified public accountants for that matter.
The gains from the appreciation of land value may be taxed only when the property is
sold and this will generally be capital gains in the long term, considering that in
Paraguay the transfer amount is 1.5% of the fiscal value established by the Ministry of
Economy and is the lowest in the region and not to corde market value and is compared
infima normally transfer amounts is undervalued so avoid paying high taxes, attention is
"avoid" is not that to "evade" this because the law provides so. For example:
10,000 hectares in Alto Paraguay (Chaco)
market value of $ 4,000,000
taxable value established by National Registry of the Ministry of Economy U.S. $
150,000
Transfer tax is paid over U.S. $ 150,000, because that's what they normally do appear in
the title, but if the investor wants to figure the amount of the market value will pay
about U.S. $ 4,000,000
But here's our grand strategy, as the field stay or buy on behalf of the SA (Inc. Plc), and
the sole object of the SA is the investment in land for subsequent sale, sold 100% of the
shares, and the farmland is transferred including the SA at the hands of new investors,
so our sale will be more competitive in a few decades when it decides to sell, the new
buyers as a society will have available, and we project that by then the ministry of
economy and update its price to the values market, if it will be higher then the amounts
payable by the transfer, and also with the removal and sale of the SA, the initial investor
will put another higher price to the SA for its age, path, name and key, which will be
additional income and amortize their initial outlay.
Beyond this brief summary, investors may speak, consult with our lawyer / tax advisor
at no charge.
Can you produce a significant decrease in the value of farmland? What is the
probability that this decrease will occur?
The value of land is directly affected by the amount of income that can be produced on
that land. Currently the supply of soybeans and meat and demand is in favor of farmers,
ranchers and landowners, and foreign demand for food and domestic demand are out of
stock, they will support or apply upward pressure on prices in the coming years.
However, if nothing dramatically alters the balance of supply and demand, which will
impact on land prices. For example, if latent protectionist rhetoric is increased to a point
where international trade is affected materially, then this could cause a disruption in
demand that could lead to a decrease in agricultural land values. But this situation of
low probability and even if it does, a drop seen in mid-1980 is not expected because
farmers are in a much better position economically with low levels of debt.
If you're considering investment in farmland, we invite you to contact us today contact:
gestiones@bancarios.com

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Paraguay asset management

  • 1. Company specializing in direct investment in farmland and asset management. Investment in farmland and operate cattle and crops farms. We ensure the growth of their capital in agricultural land banking. We investment structure gives the investor direct ownership including control over the ultimate disposition of the asset. OUR VISION: Being a solid and reliable investment platform, advising on the successful purchase of farmland OUR MISSION: We are a group of professionals offer investment opportunities conservative and guaranteed cultivating customer satisfaction, ensuring profitable growth of your investment through the efficiency of our human resources. WHY WE OFFER THIS? The production potential of Paraguay reflects the faith we have in our investment products and our sufficient capacity to offer our customers opportunities to generate wealth. OUR ADVICE TO PURCHASE LAND IN PARAGUAY - Expertise and legal inquiries on possible litigation. - Study of property title, from the first to the current title,to avoid double degree purchase land, and overlapping titles. - Study the history of titles with Public Notaries - Verify Ownership, corroborate coordinates described in the titles, know the boundaries, landmarks based on an expert report. - Request the (Registro Público del Paraguay) a. Certificate of status and dominance of the farm b. Certificate of interdiction not owners - We have a turnkey corporation in reserve available to the investor as an investment tool for the purchase of land, and develop productive activities in Paraguay avoiding bureaucratic administrative procedures, and start trading immediately.
  • 2. - To study the actual market prices to evaluate the bid price of the property under study to achieve profitable investment. - Analyze soil, climate, soil and are to conform to the agronomic requirements for potential use in livestock or crops. - Administration and operation of the farm. - Turn on leasing the property to produce an annual income. - Analyze the locations to avoid national reserves, parks, protected indigenous lands, places of conflict. - Use all the legal protections in order not to fall into unproductive latifundia, and meet the agricultural status of Paraguay. - Assessment and Environmental Impact Study before the development of the fields. - Design and evaluation of investment projects. - Advice on IMAGRO, Agricultural Activities Tax, taxation under which the investor would. - Structure and mount collective investment vehicles through a S.A. to integrate a project several investors buying land. Opportunity farmland in Paraguay When we spoke to the potential investor interested in rural land and agricultural livestock character. We do it with your feet on the ground. We show figures and testimonies about the land market in the last 10 years, for the investor to have an idea. The revaluation of long-term land value seems safer than the profitability of the farms themselves. The farms are not always profitable, as a weather-dependent activity, an adverse scenario drastically reduced projected profitability and being commoditie scenarios vary according to the international price, although part of the income can be secured with futures contracts. Investing in farmland If you are one those investors who are looking for a solid investment opportunity, you may want to invest in farmland in Paraguay - South America. With the current state of the economy, we are in the early stages of a bull market in terms of investment in farmland and the environment of political stability makes this area the ideal place to spend your money. Making a long-term commitment Income. When it comes to making investments, each individual knows that their long-term offer the best chance for excellent performance. Make an investment in farmland is an excellent long-term plan with a strong track record of success. In fact, over the past 15 years, farmland have exceeded the returns offered by stocks and bonds. At the same
  • 3. time, investment in agricultural land is up to 60% less risky than investing in stocks and bonds REASONS TO INVEST NOW. Realize an investment in farmland is a great way to generate money in the long term, there is no better time than now. This is because the world is in a period when crop demand is at its highest point. This is because the time has come when crops are used for food, animal feed and fuel As the world population continues to grow, so does the demand for food and farmland to cultivate them. Similarly, countries like China and India are consuming large amounts of commodities, which means they have a growing demand for animal feed. Of course, the increased focus on biofuels has also resulted in an increased demand for crops. With a high demand for commodities is reasonable demand for farmland may increase proportionately. This is where the wisdom of investing in farmland can help an investor to enjoy a quite satisfactory return relative to your initial investment. Investment in farmland in Paraguay Although there are many places where you can invest in farmland, Paraguay is an excellent choice. This is because the land will have the following qualities: ∗ high quality soil ∗ Good infrastructure ∗ Some of the lowest prices per acre in the world. ∗ By combining high quality with low cost land, an investor can get from the start of the investment and potentially enjoy significant rewards later. ∗ Paraguay is the 4th largest exporter of soybeans ∗ the 5th largest exporter of beef ∗ 1st perpetual organic sugar exporter ∗ 1st net energy exporter ∗ the 2nd world producer and exporter of Stevia ∗ the 2nd largest producer of tung ∗ the 3rd world fleet barge fleet (2200 units with 200 tugboats) after USA and China. ∗ the 4th largest exporter of charcoal ∗ the 4th largest exporter of cassava starch * the 4th largest exporter of soybean oil ∗ the 5th largest exporter of soybean meal ∗ the 6th largest producer of soybeans ∗ the 8th World soybean industrialization ∗ the 6th World maize exported ∗ 10th largest exporter of wheat ∗ 11th largest exporter of silk yarn
  • 4. ∗ Agricultural production represents 27% of GDP If you think you are ready to invest in farmland in Paraguay, be sure to work with a company with experience in real estate and comprehensive knowledge as the legal, tax, financial knowledge and international commodities markets, which will help make the best decision possible. By working in close collaboration with a company that specializes in the industry, you are sure to enjoy the fantastic results. Why should I invest in farmland If you are an investor or a short term long term, must be aware of the importance of real estate and how meaningful it is to be in the long run. Traditionally, investors waited for a long time to buy a property of cropland. Many European investors waited, thought about it, and ultimately decided to invest in the exact moment of 5-10 years ago and have obtained substantial gains today. However, the situation has now changed, a greater number of people are interested in agricultural investments. As you know, the Chaco was and is one of the more accessible of the world and which is excellent for livestock ed because their soils are rich in minerals. And eastern agrologicamente excellent for the production of cereals and oilseed where excessively high prices have experienced in the last three years. Today the field of the western region is accessible, but the price increase within decades. Then you will be happy for your sensible choice. Many people wonder why they should invest in Paraguay, the main reason behind this is the target market which is very attractive. Fields of the East and West Regions totaling some 40 million hectares of these represent almost 70% to 80% of the arable land in Paraguay. This shows why investors are choosing to Paraguay as the new place for investment in farmland. You can safely invest in farmland because a farm Chaco is a very stable and conservative investment and future income generation will imminently profitable. It also has protection against inflation. There are projects of meat processing industries such as refrigerators, and facilities of the Mennonite colonies, Cooperatives and several populated cities. Moreover, the price of each hectare is low, despite the recent increase. Compared to other places in the prices of agricultural land, the Paraguay has annual rainfall that meet the agronomic requirements, compared to Australia and Africa where residual soils are selling and where no water or rain, Paraguay has one of the soil most fertile in the world. Our Country, no restrictions on foreign sovereignty only by a foreigner can not buy at 50 km from the border in a personal, so structured to make the purchase with a corporation, therefore, you can buy a farm where want. Earlier this decade, the main concerns were about the reconstruction and energy. However, things have taken a different course and concern has shifted to food and
  • 5. water. The cost of wheat, soybeans, corn, meat and other crops from the fields of Paraguay are increasing, but offers the lowest prices of agricultural land in the whole of South America. This makes the regions of Paraguay as attractive for investors from around the world. Today investors can get better opportunities to buy farmland in Paraguay, no worries. On average, a farm in the Chaco is sold for around U.S. $ 350 - U.S. $ 700 per hectare. Agricultural land will increase in the coming years around about U.S. $ 40 per hectare will get a better picture of the rates when comparing prices with those of other countries. Therefore, the benefit to agricultural investments in Paraguay is evident and now is the time. If you make investments in farmland, then you have nothing to lose. In fact, you will make a lot of profit in the future with your new purchase because the price of land in the Chaco up and stay up, because the borders will extend to agricultural livestock farm because that's the trend observed and is reflected beef exports. Capital investments in farmland long term In investments (Agricultural LandBanking), investors are enjoying several years of good returns and profits. As is the case with any form of investment, the main characteristics of the investment market drives results, many current wealthy got their fortune retiring with U.S. $ 10 to 15 million, venting his investment of 10-15 years ago that initially conformed capital $ 500,000, when they had acquired 40,000 hectares farms, valued at U.S. $ 10 per hectare with an initial capital of U.S. $ 400,000 today I turned wastes of capital by selling to U.S. $ 350 per acre their farms getting substantial profits When looking at long-term investments, the potential capital growth in land investments in Paraguay, are impressive growth rates, coupled with low risk. Overall prices (farmland) have increased by up to 30% in the last 12 months and 130% since the beginning of 2006 with an average growth of 920% in the last 10 years. When looking investments for growth From Long Term Capital most individuals take into account the mutual funds, mutual funds, stocks, bonds and hedge funds. However, the fact is that the earth has had a better average growth with low volatility. This makes the earth a solid capital allocation for low risk investor, conservative and conscious. Having demonstrated that the investment of large institutional investors and conservative gigantic bore fruit, the land market becomes exciting and is open to small investors through our investment scheme as part of a corporation and investing from this, since Hás small amounts are not sales and consolidate capital needed to acquire large tracts interesting. Why has so much potential farmland as an investment? When looking at long-term investment and capital growth potential, we must look at the supply and demand equation. Land has all the ingredients for demand to exceed supply and prices of land increase in value in the coming years.
  • 6. The case of land in Paraguay is clear that of all the countries in the world to invest in land, the Chaco is one of the most attractive for the following reasons.  Soil with rangeland  Freshwater, Yrenda aquifer, Rio Paraguay and others, see map hydrographic  In the Chaco oil and gas are currently several companies in the area have concession for exploration, exploitation and marketing  The Chaco bioceanic contained within  The prices are low, now is the time to buy  Inelastic  Legacy of Malthus to consider  Project aqueduct  shield against inflation  High annual revaluation of land  Natural wealth, wood, water  rational extraction of forest products, charcoal, poles.  green income, REDD, biodiversity conservation, draft foundations, receive donations through sponsorships, create bank forest carbon footprints.  Development Poles, Mennonite colony area where large industries, cooperatives, banks, hotels, refrigerators, zootecnias, genetic technologies.  Possible commercial development in the border of Bolivia.  Tourism, many attractions being developed.  The Paraguay River empties into the Río de la Plata, logistically interesting.  For the future if given and kept the oil up, you can re-emphasize biofuels and Jatropha plantations make adapting to Chaco.  eoliths Park Development, Baltic photo.  Low property tax.  In the Chaco (Alto Paraguay) showed that it is possible to soybean cultivation. Agricultural LandBanking. The key to the growth of Long Term Capital simply involves the acquisition of virgin forest land, who do not enjoy development, when generating the expansion of livestock driven by the rise in meat prices and increased exports Paraguayan , the area experienced changes such as road building, cold storage facilities, ports and an immensity of value chain in about 10 years that raised the value of land. The way to make big capital gains in the sector involves buying land in specific areas, with the expected future development. With the subsequent sale within 10 years, it is possible significant a capital gain. Land Investments for growth in long-term Capital: Good past performance with low risk and the prospect of good future capital growth, makes investing in land obtain long-term growth an attractive option for all investors. "Many people made their fortunes in this investment and you can too, is a proven investment system that does not fail, success should be replicated, now is the time"
  • 7. There is no better way to control the Low risk to build substantial capital gains long term. As Donald Trump once said: "I love the Real Estate.'s Tangible, it's solid, and it's beautiful." Howard Hughes was one that believed in investment in land as one of its high-yield investments, he focused on the purchase of vast tracts of land under development in California, who came to be worth billions. Where is the best place to buy land? Paraguay, and we emphasize in the Chaco land offering excellent low cost, low risk and high return opportunity for investment in the medium term. Land Investments in Chaco, has exceeded long-term profitability some asset managements systems offered abroad, including mutual funds, pension funds, stocks and bonds. Our investment proposal are solid, long-term benefits, the facts speak for themselves. In general, land prices have risen Chaco up to 30% in the last 12 months and 130% since early 2006 with an average growth of 920% in the last 10 years. If you joined an investment with the purchase of an estate of 5,000 Hectares, in recent years, the average growth you would get a return of more than $ 2 million in just 12 years! Of course, no guarantee, but with the growth rates we've seen in the last 10 years the gains are possible. Paraguay is experiencing great changes, much growth, and now with a capitalist center- right president, will be great progress in the productive sector, which pushed a herd increased and hence farm developments that allow investors to sell with a significant benefit their land over the years. Today, international investors advise on how to take advantage of land in Paraguay. We look at the best places and we emphasize all the facts, so that an investor can make an informed decision about whether to invest. A typical minimum investment usually starts with $ 1,000,000. - With profitable return on investment and low risk. The high return investments with low risk does not come around very often, but we believe that farmland is an opportunity. If you are considering high yield investments, the land is ideal for an investor looking for long term you are looking for great capital growth potential.
  • 8. Case studies on real history. CASE A Buy: May 2004 Size: 5.000 acres Price: U.S. $ 25 per hectare Total $ 125,000 Location: Paraguay, Western Region, Paraguayan Chaco Department of Boqueron, in Pozo Hondo Fitness Floor: Area livestock production 05/25/2013 Market Quotation year Price: U.S. $ 300. - Per hectare Total $ 1,500,000. - Profitability: 1500000-125000 = U.S. $ 1.35 million profit Time 9 years (1,350,000 x 100) / 125,000 = 1,080% 120% annually CASE B Buy: January 2004 Area: 16,000 hectares Price: U.S. $ 20 per hectare Total U.S. $ 320,000 Location: Paraguay, Western Region, Paraguayan Chaco Department of Alto Paraguay, place the Gerenza Fitness Floor: Area rangeland 05/25/2013 Market Quotation year Price: U.S. $ 250. - Per hectare Total U.S. $ 4,000,000. - Profitability: 4000000-320000 = U.S. $ 3.68 million profit Time 9 years (1,350,000 x 100) / 320,000 = 1,150% 127.777% annually CASE C Purchase: June 2003 Size: 4.000 acres Price: U.S. $ 200 per hectare Total $ 800,000 Location: Paraguay, Eastern Region Department of place San Alfredo Concepcion Fitness Floor: Area livestock production 05/25/2013 Market Quotation year Price: U.S. $ 1,200. - Per hectare Total U.S. $ 4.8 million. -
  • 9. Profitability: 4800000-800000 = U.S. $ 4 million gain Time 10 years (4,000,000 x 100) / 800,000 = 500% 50% pa CASE D Buy: May 2010 Area: 15,000 hectares Price: U.S. $ 270 per hectare Total U.S. $ 4,050,000 Location: Paraguay, Western Region, Paraguayan Chaco Department of Boqueron, rather Route Ñ Fitness Floor: Area livestock production 05/25/2013 Market Quotation year Price: U.S. $ 500. - Per hectare Total U.S. $ 7.5 million. - Profitability: 7500000-4050000 = U.S. $ 3.45 million profit Time 3 years (3,450,000 x 100) / 4,050,000 = 85% 28.39% pa CASE F Buy: May 2005 Size: 1.500 acres Price: U.S. $ 2,000 per hectare Total $ 3,000,000 Location: Paraguay, Eastern Region Department of Alto Paraná, place St. Albert Floor Fitness: soybean production area 05/25/2013 Market Quotation year Price: U.S. $ 5,500. - Per hectare Total U.S. $ 8,250,000. - Profitability: 8250000-3000000 = U.S. $ 5.25 million profit Time 8 years (5,250,000 x 100) / 3,000,000 = 175% 21.875% per annum "We are at your disposal, your interest is our interest, your success our success, we are to offer good businesses"
  • 10. Farmland is an attractive long-term investment that offers current income and capital appreciation, as a hedge against inflation and diversification favorable and is negatively correlated with traditional asset classes. With the development of capitalism, is constantly increasing the price of land, which is due, firstly, to the tendency of the rate of interest and on the other hand, the increase in land rent in all respects . The income growth, in turn, is conditioned by the growing demand for agricultural products and the expansion of cultivated land surfaces. The rising price of land means that productive consumption is subtracted growing part of goodwill, some landlords do not use it productively. In fact, since the end of World War farmland in the United States has experienced a steady increase in value every year, but four (1983, '85-'87). Most investors have experienced painful falls in the value of their portfolios lately, but those who have an assignment on agricultural lands benefited from lower volatility and positive returns to offset losses from other asset classes. WELCOME TO PARAGUAY FARMLAND PARTNERS SA In Paraguay Farmland Partners SA , Our goal is to identify, acquire and manage the best agricultural land that Paraguay has to offer our investor clients. Paraguay Farmland Partners SA performs these tasks for their investors, which beneficially acquire land within a corporation own that we make available to each investor. Paraguay Farmland Partners SA acts as general manager and uses its extensive network of farmers and ranchers proven attractive for cash rent or crop share lease Paraguay Farmland Partners SA has the best tenants, and want to improve the structure and rural buildings to increase property values. Paraguay Farmland Partners SA strives to be respectful of the land manager that manages and uses soil conservation techniques to the greatest extent possible. We also seek alternative energy opportunities as feedstock for biofuels production. This document is designed to introduce investors and trading partners in the reality of the land market, and so they can have a better understanding of the advantages Paraguay Farmland Partners SA and the benefits of our investment strategy.
  • 11. RATIONALE FOR INVESTING Current Income Lands revenues have consistently produced agricultural product sales between 15% and 25%, depending on the climate and the international prices of commodities, as well as agricultural income. Capital Appreciation An important component of the total return on farmland is capital appreciation. As the demand for agricultural products increases and the supply of arable land suitable for agriculture decreases, there is a significant increase in the value of agricultural land. Inflation Hedge The land has a positive correlation with inflation and is considered a classic hedge against inflation. In fact, many investors see as more favorable than other tangible assets like gold, because farmland produce a positive cash flow while protecting the harmful effects of inflation. Diversification The Farmland negatively correlated with traditional asset classes like stocks and bonds, and is just a little correlated with commercial real estate. This provides the stability of the portfolio during volatile markets while improving risk-adjusted return of a portfolio.
  • 12. FUNDAMENTALS FAVORABLE It predicts good benefits in land investment, macroeconomic fundamentals are favorable and are about to increase farmland values in the coming years. The demand for food The world population continues to grow and is projected to increase from the current 6.7 billion to more than 9 billion in 2040. This increase in population will require increasingagricultural production for food bastecer. In addition, as incomes rise in emerging markets with large populations, there will be greater demand for a better diet which usually means more meat. The raw meat requires more grain compared to grain for direct human consumption. For example, one pound of beef requires seven pounds ofgrain feedstock and a pound of chicken will need two pounds of grain. The demand for alternative energy Increasing awareness of global warming has led to an increased demand for alternative energy sources, and the owners of agricultural land are in a unique position to benefit from this development. Currently, the raw material for biofuels in the United States is corn and soybeans for ethanol biodiesel production. The efficiency of corn-based ethanol is improving exponentially as revealed in a recent study published in the Journal of Industrial Ecology. Over time, the technology will allow the addition of cellulosic biofuels made from millet, corn stalks or other fibrous raw food, but still needed farmland and farmers to plant, maintain and harvest alternative crops. Moreover, the recent interest in wind energy will lead to increased demand for land to locate wind turbines. The supply of arable land, able to provide all the optimal factors for agricultural crops is limited, and in Paraguay supply is shrinking. In addition, global supplies of fresh water for agricultural production are being rapidly depleted. The technological advances that allow for higher yield of existing farmland helps the imbalance between supply, but these advances also increase income per acre of existing farmland and therefore increase its value.
  • 13. INVESTMENT PHILOSOPHY Paraguay Farmland Partners SA Aims to provide the main service management and asset management purchase agricultural investors who otherwise would not have access to this profitable asset class is correlated with traditional assets. Paraguay Chaco Farmland Partners SA believes that the best form of investment is through direct purchase by the property investor in Paraguay, so to have a portfolio, which also allows investors to participate in land revaluation gains. Paraguay Farmland Partners SA believes that the purchase decision is critical and seeks to identify undervalued properties that generate positive cash flows. The risk is reduced when a property is bought at the right price with multiple sources of return. Paraguay Farmland Partners SA also seeks to improve their farms thereby increasing the long term value of the property and requires a higher rent. Paraguay Farmland Partners SA actively manages each property, select a farmer proven its existing network of preferred producers who want to expand as Paraguay Farmland Partners SA acquire more farmland for their investors. The result is a partnership that benefits both the owner / investor and producer. VIEW Paraguay Farmland Partners SA see a greater role for the land asset in the investment portfolios of both individual and institutional. Revenues from production or lease lands is particularly attractive because it provides annual income. The Farmland will benefit from increased demand for grain, environmental demand of alternative energy and the impact of globalization. The factors that will benefit farmland investments are: - Global Demography food demand increases - The increasing demand for protein by the Asian middle class - Alternative Energy demand for ethanol, biodiesel and wind - The decrease in the global supply of farmland - Paraguay has a comparative advantage in agriculture - Agriculture / Land correlated with stocks and bonds. Sources of return Paraguay Farmland Partners SA seeks to generate an attractive yield for investors through the purchase and management of highly productive farmland. The revenue is provided by leasing producing properties with proven and capable. There are mainly two means if you purchased a ranch formed with all infraestruturas and facilities required figure Lease Capitalization or both are provided for in the law 2421/04 IMAGRO Taxes on agricultural activities And for the fields suitable for soybean cultivation agricultural Sharecropping which can set an annual amount, or production, for example the value of half a ton of soybeans per hectare. The models of the three contracts will be described in other materials.
  • 14. In addition to current income, a major component of the total return is the appreciation in the value of the properties to be in the pipeline. Paraguay Farmland Partners SA seeks to achieve the highest revenue production of each land that is in line with long-term enrichment of the value of the estate. Company Profile Paraguay Farmland Partners SA is a corporation established to serve as investment manager and take the general direction of ranches, fields, farms, forests of the new owner who is our investor. Paraguay Farmland Partners SA manages and has a portfolio of properties, for lease, or waiting for future sale. It is a diversified agricultural portfolio, oriented Paraguay farmland. The property acquired is the exclusive property of its investors and generate current income yields, and the appreciation in the value of your property. Features tour of the company include: - We manage a diversified portfolio of farmland - Assembly, structuring Paraguay Investment Trusts (SA) vehicle for investment in land. Multiple benefits. - Agricultural leases on behalf of the owners of several years with staggered maturities and hire diversified structures. - Total transparency for investors, including the audited financial statements of income. - Performs general meeting of shareholders, board memory. VARIOUS INVESTORS IN A S.A. (Inc. Plc) In the event that individual investors do not have enough capital to buy a farm Farmland Partners SA Paraguay has as collective investment strategy through Anónimas Company, where different investors contribute capital to the SA as shareholders, and once that integrates the necessary capital for the purchase of an estate, investment takes shape Each investor shares in the revenue generated by these exploitations, and the appreciation of the properties "value proportional to the amount of their capital investment. The benefit to investors is that they share the benefits of a diversified portfolio managed farmland provides unbiased high current income, significant growth and low correlation to traditional asset classes. Apart from financial models, how to evaluate the quality of a land? We look at the soil types, soil slope, height, percentage of acres arable and design fields. We try to maximize acres arable and buy farms with minimum slope because these issues are incorrigible. However, we advise purchasing farms in different soil types and elevation, as they can still be productive farms, is just a matter of the price you will pay to buy and what to produce income. How do you determine the quality of soil, crop type most appropriate for the country, and the potential efficiencies that can be achieved? We examined soil data at the Faculty of Agricultural Sciences gives the percentage of all soils we carry, analyzing its ability to yield of corn, soybean and wheat. If grain-producing land, or livestock production fields to have a positive, why they decide to sell it? Rarely a farmer bought existing properties. Generally we are buying agricultural land of the widow or other relative who has inherited and has no interest in agriculture, of the
  • 15. successors, of people who have been adjudicated during the Stroessner dictatorship of former Rural Welfare Institute (IBR) Institute of Rural Development today (INDERT). that until now are unproductive, they have acquired bargain prices, and are now offering to market price, that with our sound advice the investor can buy at undervalued. It is an generational shift that is occurring and that time is running out agricultural land ownershipthat this beginning to focus in large enterprises. What do you think global macroeconomic factors are driving the demand for raw materials and agricultural land? There are four global macro events occurring, which led us to invest in farmland originally and are still driving factors: (1) "demand" for food from the growing middle class in Asia and emerging markets, (2) the biofuels, (3) the depletion of arable land for agricultural production, and (4) resurgent inflation .... in this order. Experts in the field of commodities underestimate the global demand for food and will increase grain exports South America. The growing middle class in emerging economies want to eat like Americans as people improve their standard of living, one of the first things they want to do is improve your diet which means eating more protein. 0.91 It is intended kilograms of grain to produce 1 kilo of chicken, 1.81 kilograms of grain for every 0.45 pounds of pork and 3.18 kilograms of grain to produce 1 kilo of beef. China is already the largest consumer of pork and soybeans in the world, it also became a net importer of corn in May 2008. Moreover, as the dollar weakens against the Chinese yuan, our exports are cheaper in local currency and Chinese demand will increase our food products. What if the ethanol is no longer pushed by the U.S. federal government and is replaced by natural gas or electricity? A: Ethanol is just one alternative energy source that is needed to satisfy global demands for energy expansion. Corn-based ethanol is not the panacea for our energy needs, but also has positive attributes of the press has focused in recent times. For example, ethanol produces a byproduct, barley grains, a high protein source and the remaining animals were used to feed cattle, but rarely included in the economics of ethanol. The efficiency of corn-based ethanol is improving exponentially as time passes, that is revealed in a recent study published in the Journal of Industrial Ecology. As time passes, the technology will allow the addition of cellulosic biofuels made from millet, corn stalks or other fibrous raw food, but still needed farmland and farmers to plant, maintain and harvest alternative crops. How to decide to pay for agricultural land prices? In general terms Paraguay Farmland Partners SA pay less land per hectare than other farms in the same areas. This is due to the fact that the properties are often brought to our attention by our network before they are officially listed with a real estate agent. Finally, sometimes we buy a large tract of farmland to a lower overall cost compared to someone who is willing to pay a higher price for a small plot inside this the same, a concession is granted to the purchaser to large scale through our strategy of integrating collective investment in capital and shareholder of a SA (Inc.Plc) that has the same objective for all investors. Investors are buying Paraguay portfolio fields Farmland Partners. Investors are buying existing diversified portfolio of Paraguay Farmland Partners SA properties that currently consisting of over 100,000 ha and sprawling with each new investor and each offer received.
  • 16. What is the objective universe invertible in the land? It's just the largest lands an appropriate setting for this type of portfolio? The objective universe consists of millions of hectares of primordial farmland in Paraguay. We continue our acquisition strategy, which is buying with values ranging from 100 ha farms more than 1,000 ha. The attractive land acquisition opportunities are not limited only to larger farms. We see no problem of capacity in terms of the potential agricultural investments or acquisitions. Our relationships and reputation building and habilitation in the Paraguayan Chaco and partners allows us to gain access to a growing number undervalued the best offers for buying opportunities farmland. Can you explain what happens in tax matters, if the value of assets wise increases each year, but no withdrawals? Investors are not exposed directly to the treasury, since they incorporate the SA (Inc. Plc) and this face as a legal entity tax liability if the land use is affected by the IMAGRO (income tax farming) by use of capital, labor and land, and if the land is leased, is taxpayer IRACIS stays Income Tax Industrial and Commercial Activities Services generally will be income tax liability for a year for the lease, but there are some things such as depreciation of irrigation equipment and other improvements that will serve to reduce tax liability, there are many deductible expenses provided by law 2421/04, which our team will take care of qualified public accountants for that matter. The gains from the appreciation of land value may be taxed only when the property is sold and this will generally be capital gains in the long term, considering that in Paraguay the transfer amount is 1.5% of the fiscal value established by the Ministry of Economy and is the lowest in the region and not to corde market value and is compared infima normally transfer amounts is undervalued so avoid paying high taxes, attention is "avoid" is not that to "evade" this because the law provides so. For example: 10,000 hectares in Alto Paraguay (Chaco) market value of $ 4,000,000 taxable value established by National Registry of the Ministry of Economy U.S. $ 150,000 Transfer tax is paid over U.S. $ 150,000, because that's what they normally do appear in the title, but if the investor wants to figure the amount of the market value will pay about U.S. $ 4,000,000 But here's our grand strategy, as the field stay or buy on behalf of the SA (Inc. Plc), and the sole object of the SA is the investment in land for subsequent sale, sold 100% of the shares, and the farmland is transferred including the SA at the hands of new investors, so our sale will be more competitive in a few decades when it decides to sell, the new buyers as a society will have available, and we project that by then the ministry of economy and update its price to the values market, if it will be higher then the amounts payable by the transfer, and also with the removal and sale of the SA, the initial investor will put another higher price to the SA for its age, path, name and key, which will be additional income and amortize their initial outlay. Beyond this brief summary, investors may speak, consult with our lawyer / tax advisor at no charge.
  • 17. Can you produce a significant decrease in the value of farmland? What is the probability that this decrease will occur? The value of land is directly affected by the amount of income that can be produced on that land. Currently the supply of soybeans and meat and demand is in favor of farmers, ranchers and landowners, and foreign demand for food and domestic demand are out of stock, they will support or apply upward pressure on prices in the coming years. However, if nothing dramatically alters the balance of supply and demand, which will impact on land prices. For example, if latent protectionist rhetoric is increased to a point where international trade is affected materially, then this could cause a disruption in demand that could lead to a decrease in agricultural land values. But this situation of low probability and even if it does, a drop seen in mid-1980 is not expected because farmers are in a much better position economically with low levels of debt. If you're considering investment in farmland, we invite you to contact us today contact: gestiones@bancarios.com