UPDATE:The official data of farmland transactions in 2020 are online available. The records refer to transactions that were presented to the Institute of Colonization. These are only transactions for larger plots of productive land.
The overall area transferred is 124.000 hectares and 133 transactions in total. A bit less area than in 2019, because there were no transactions of extra-large properties by institutional investors like the Harvard forestry assets. The average price per hectare is $ 3.161 USD. Total amount transactions is 392 M USD.
International borders closed during 2020 created a window of opportunity for domestic buyers who were mainly interested in mixed farms (cropping and cattle). Some international investors already owning assets in the country took advantage to expand their portfolio. Especially the period June to September was dynamic with several transactions of larger properties. In 2020 UPM started the construction of the second pulp mill in Durazno. The interest in forestry in Uruguay remains significant and there were several sales in forestry assets as well. Price remained stable while there was more demand than offer of this type of property.
Some examples of executed transactions are:
– a rice farm in Mariscala, Lavalleja of 8.591 hectares at 2.988 USD per hectare,
– a cattle farm in Durazno of 3.900 hectares for 2.500 USD per hectare,
– a crop farm in Soriano of 1.370 hectares for 7.327 USD per hectare, or
– a forestry plantation with cattle in Treinta y Tres of 1.000 hectares for 3.000 USD.
It can be deduced from the full list of transactions that average prices are:
– cattle land 1.800 to 3.200 USD per hectare
– forestry land 3.000 USD per hectare for non-planted area up to 6.000 for planted forest
– mix of crop, timber and cattle land 3.500 to 5.000 USD per hectare
– crop land 5.000 to 7.500 USD per hectare (65% or more suitable for cropping)
– small premium crop fields in Colonia ranging between 8.500 and 10.000 USD per hectare
Prices vary depending on soils and location. Apart from these general references, there can be a plus on the prices when there is an important farmhouse or when the property is located near a city like Montevideo, Punta del Este or Colonia del Sacramento.
Upon request we can present more data and explanations on soil quality and other important factors in determination of prices.