Global Courant
Although a slight reduction in values is observed, the demand for fields for agriculture and livestock is on the rise.
The rural real estate activity index prepared by the Argentine Chamber of Rural Real Estate (CAIR) marked 32.88 points in May, an increase of 7.76 points compared to April.
As stated by the entity, caution is the common denominator of the market and pessimism due to the general situation that the country is going through continues to be high, but land values continue to tempt investors, who are betting on a positive change in the economy. .
Juan José Madero, Director of the Fields Division of the firm LJ Ramos Real Estate Brokers, stated in a radio interview that it is “an active year for the real estate market.”
“Rents are very firm, like the last three campaigns, with a very high demand that is unsatisfied for agricultural fields and ranchers. We come from three dry years, suffering a lot, but the producer is betting again, ”he said, adding that the expectation of a change of government has a positive effect on the sector.
Regarding the values negotiated for the leases, Madero explained that they are similar or slightly lower than the previous campaign. In this sense, the first estimate of leases for the 2023/24 campaign carried out by the Córdoba Grain Exchange showed an average result for the province of Córdoba of 11.5 quintals of soybeans per hectare, half a quintal below that observed in the 2022/23 campaign, but positioning itself as the second highest value of the last 12 campaigns.
“Productive activity, beyond the fact that the reference values are international, is paid in pesos, so buying inputs to convert them into grains is much better than having the pesos saved. Productive activity is a refuge, and that generates demand for fields,” Madero explained. Then he added another key component to the high demand for fields: “In some areas it started to rain and there are expectations of a better agricultural season and more grass availability.”
Regarding the modality chosen for the payment of the lease, the Cordoba Stock Exchange indicated that in the first place, the payment is positioned in fixed quintals per hectare, which are generally delivered in dollars, and to a lesser extent, in physical grain.
The change of climate and the elections drive the
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