Farmland transaction prices 2021

At the start of 2022, we can draw conclusions regarding farmland transactions in the past year in Uruguay. On January 4, the Institute of Colonization published the final transactions that were done at the end of December.

In total 172 transactions were presented to Colonization In 2021. Transactions of a certain size and soil quality need to be presented to this state entity. These transactions cover 238.220 hectares and add up to an amount of 899.651.163 USD. That leads to an average amount of 3.776 USD per hectare.

Many Uruguayans invested in farmland in their home country as they seized the opportunity. Economic outlook for Uruguay is positive and international commodity prices are rising. With an expected higher demand for agricultural land in the near future, 2021 was a very good year to invest in this asset class. Some international investors in Uruguay decided to expand their operations whereas at the same time others decided to get out.

The most important transactions:

  • OLAM decided to sell off their dairy farms in Florida after years of mismanagement (previously New Zealand Farming Systems).
  • Santa Juana (group of European institutional investors) managed to sell their last farms in Cerro Largo.
  • A local forestry fund purchased many plantations in Eastern Uruguay on behalf of the trust they started operating, called Bosques de la Serranía.
  • UAG sold a large property with rice cultivation near Laguna Merin. State Bank BROU is still analyzing the sale of this asset.
  • Two large crop farms near Cardona, Soriano were sold for a relatively high price. Both farms have irrigation systems in place.

In general, one can say that price for crop farms vary between 8.000 and 10.000 USD per hectare depending on soil productivity and distance to grain port. Land suitable for forestry increased in value to a price close to 3.200 in the east and 4.000 USD per hectare in the west. Cattle farms in the north with extensive grazing are available for 2.500 USD per hectare. Mixed farm with cropping and livestock vary between 4.500 and 6.500 USD per hectare.

Upon request we can provide more detailed information, focussing on sectors or regions.

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