“Opportunities for Investors,
Managers, valuers and consultants”
Brazil Iowa Farms
Six Year Anniversary Of
Brazil Iowa Farms
6
Brazil in World Agriculture/Main Crops
Ranking
Product
Soybean
Prodution
2nd
Exports
1st
Maize
3rd
3rd
Sugar Cane
1st
1st
Coffee
1st
1st
Orange
1st
1st
Beef
1st
1st
Poultry
2nd
1st
Tobacco
2nd
1st
Arable land equates to 33 countries in Europe.
Portugal
Hungary
Spain
Poland
Ukraine
Bosnia
Romania
Macedonia
Austria
Croatia
Ireland
Czech & Slovak Rep’s
Lithuania
Greece
England, Scotland and Wales
Serbia & Montenegro Rep’s
Iceland
Norway
Italy
Germany
Finland
France
Estonia
Latvia
Switzerland
Sweden
Holland
Source: John Deere
Bulgaria
Belarus
Albania
Belgium
Denmark
Bahia is one of the prime soybean & cotton growing regions in Brazil
Brazil Iowa Farms
Fazenda Iowa operates as Grupo Iowa in Brazil
Brazil Cotton Featured on JC Penney Towels
John Deere
Tractors Made In
Iowa For Export to
Brazil
Iowa I – Line up of tractors, red and green!
Our new 90 foot planter – 36 rows
Brazilian Rules For Large Land Sale
Transactions to Foreign Investors
•
Currently little knowledge on who owns land and
who new buyers are. New rules will track
ownership.
•
No New law or constitutional amendment. New
Rules controlled by INCRA (Govt entity that
registers titles)
•
Buyers must submit plan of development to
Ministry of Agriculture and disclose ownership.
Must be done for foreign buyers to get title.
•
Is not a de-facto ban on new purchases. No legal
basis to ban new purchases
29,8
3,4
If You Build It,
They Will Come
Brazilian Field of Dreams
Regional infrastructure developing as was
envisioned
Investment in discovery process paying off
Railroad = better basis
Brazil East-West
Railroad
Ilheus to Caetite
Completed by July 2012
Caetite to Barreiras
Completed by July 2013
Barreiras to Figueiropolis
Still in planning stage
•
•
•
•
Boost flow of production of Bahia
Connect region with other industrial centers
Connection to North-South Railroad
1490 km (925 miles) at a cost of R$ 6 billion by 2012
LEM
Barrieras
BR20
Roda Velha
Iowa III
Iowa I
Iowa II
Corn Yields
Sacks Per Hectare
200
180
S
a
c
k
s
160
P
e
r
100
H
e
c
t
a
r
e
60
199
176
180
2009
2010
140
107
120
90
85
80
40
20
0
0
2005
2006
2007
2008
2011
Brazil Corn Area Harvested By Year
Brazil has made great economic progress
succeeding on the strength of its natural
resources.
Resource based growth has not been fully
exhausted but barriers exist to blocking
Brazil from achieving 1st class economy
including:
1.Cultural
2.Labor
3.Judicial
4.Capital
5.Civil / Political
5th USA
Registering
Property
12
127th Brazil
122
Getting Enforcing Paying
Credit Contracts Taxes
6
8
62
89
98
152
Source: World Bank
5th USA
Registering
Property
12
127th Brazil
122
Countries Ranking Better
Than Brazil
59
Kazakhstan
73
Mongolia
76
Zambia
104 Ethiopia
107 Bangladesh
126 Mozambique
Getting Enforcing Paying
Credit Contracts Taxes
6
8
62
89
98
152
Countries Ranking Worse
Than Brazil
Source: World Bank
5th USA
Registering
Property
12
127th Brazil
122
Countries Ranking Better
Than Brazil
59
Kazakhstan
73
Mongolia
76
Zambia
104 Ethiopia
107 Bangladesh
126 Mozambique
Getting Enforcing Paying
Credit Contracts Taxes
6
8
62
89
98
152
Countries Ranking Worse
Than Brazil
145 Ukraine
150 Uzbekistan
157 Zimbabwe
167 Afghanistan
183 Chad
Source: World Bank
This financial
crisis is forcing
State and Local
Agencies to make
some tough
decisions.
If things continue
for much longer,
there’s a real risk
that we may have
to lay off Jose.
How Best To Invest In Brazil
1. Partner with experienced, established,
local company – green fields are
dangerous.
2. Outsource capital needs – bring all the
money with you.
3. Outsource operational management –
transfer liability risk.
4. Avoid entanglements – don’t go near the
jungle.