The Real Estate Market

Farming Market

THE FARMING MARKET

The farming sector experienced somewhat lesser volatility with a 30% drop in values immediately following the January 2002 devaluation. However, favorable legislation for debtors allowing the pesification of US dollar debts, accompanied by bumper crops and high international commodity prices, allowed owners to settle their financial woes and withdraw their properties from the market. Naturally, the latter lowered supply and led values to increase back to December 2001 figures and often higher. Given lower production costs and high commodity prices in US dollar terms, farmland offers excellent investment opportunities. Returns are equally interesting in either production or simply renting out farms to larger producers.