The final data of farmland transaction in 2016 are available. The records refer to 66 transactions that were presented to the Institute of Colonization. These are transactions for plots of more than 500 hectares and CONEAT 100 or more. The overall area transferred is 98.618 hectares. Considerably more than in 2015 when 70.419 hectares were sold or 2014 with 54.310 hectares. The average price per hectare is $ 3.945 USD which is below the average of last year $ 4.574 USD. As compared to 2015 we see more transactions covering a larger area at a lower average price.
In part this is due to the fact that in 2016 most transactions were done in northern Uruguay (Tacuarembó, Salto, Cerro Largo) or in central and western Uruguay with soils mostly suitable for timberland (Durazano, Paysandú). This is obviously related to the construction of the new UPM pulp mill in central Uruguay near Paso de los Toros. There are also large international funds selling farmland to adjust their financial balances.
It can be deducted from the full list of transactions that average prices are:
- cattle land 2.500 to 4.000 USD per hectare
- forestry land 3.000 USD per hectare for non-planted area and approx. 4.500 USD for planted
- mix of crop, timber and cattle land 4.000 to 7.000 USD per hectare
- crop land 6.000 to 10.000 USD per hectare (75% or more suitable for cropping)
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. We carry out property appraisals for international investors who seek a ´second opinion´.