“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.