Invest in Agribusiness - Brazil

[jjfdea]

I would like to know if somebody here have already considered in investing in Brazil - crop production. As a Brazilian, I can say there plenty of opportunity for this field in my country, mainly because of huge swaths of arrable land available. But I'm looking for a foreign person to see if we can establish a partnership.

[ado089]

How much are you looking for, and for
what share. I think farming, or at least
growing, in canada is a fools game. Our
only competitive advantage was cheap
land and that is gone.

[jjfdea]

To invest in Brazil, the minimum amount of money one needs is $150,000. But unfortunetaly this is not enough to buy a piece of land here anymore. This doesn't mean that cheap prices are gone around here. The case is they vary according to the region the farm is (Brazil is as big as USA and Canada). And to me, the most important thing is credit/loan. Prohibitive in my country. The cost of money and interest rates in Brazil are so high you wouldn't believe. That is why I'm looking for a foreign partner. In my mind, it's easier and less costly for a citizen of a developed country to borrow Money from whatever source. So quantity of money and share are not the defining point in my case.

[ALLFARMER]

How many acres/hectares does 150,000 buy?

[jjfdea]

Sadly very few hectares (we don't use acres in Brazil). If you were about to come to my country to invest in farming activity how much Money do you think you'd have?

[jjfdea]

Good farms in Brazil, for example, depending on the region, have a price of $ 1 to 2 million (Brazilian currency), with the size being 1,500 to 2,500 hectares. Owning a land this huge one can make very much profit here.

[poorboy]

Wow $200 cdn/ac. How much is left for the farmer after paying off all the people who need there palms greased?

[jjfdea]

Wow, palms greased? I'm laughing a lot here. Yes, corruption is an old problem in Brazil, but we don't necessarily face it in our daily life. There are a lot of honest people here. And I'm a law student, I know how this can be avoided.

[bucket]

How is the infrastructure. From what I have read there are few railways to get grain to port.

If brazil is the size of canada, to truck grain to port could eat up a lot of the profit.

Why is brazil not looking at building dual tracked railways to increase value of exports? I think you can then be taken seriously about investment. I think I would move there at that point because Brazil and its farmers would become some of the lowest cost producers in the world.

Canada would struggle to keep up.

But gladly there is no indication that will happen soon, so just carry on.

[jjfdea]

A very good point, man. Logistics is a careful item any person who wants to do business in Brazil has to evaluate. Its quality is different for each state and generally the closer you are to the sea the more affordable it is. And yes, a lot of commodities are transported by ferry here. It's such a pity the system is not full developed though. Where a farm is situaded can increase or reduce the profits.

[bucket]

So if you have been reading any other threads on agriville, you will notice my issue with politicians or leaders is their lack of vision.

I really don't care if Brazil is corrupt or not, but to build a railway is essential to the well being of your country. If a corrupt person builds it, who cares, the value of it will out weigh the corruption.

Besides in the early days of railways in the US they used to rob the train on horses. Eventually that practices was put to end by lawmen, and just common sense that a horse ride may not end up to well beside a train.

Here is hoping you get your railway built and never follow Canada's lead in tearing the equivalent of one up already.

Remember this. Canada is one of the youngest nations on this planet and has already destroyed a complete rail infrastructure once.

Do not ever think that there wasn't corruption involved here as well.

[jjfdea]

People never have to forget that Brazil is a developing nation. Despite our growth in recent years, it's still a very poor country. Full of potencial, but very poor yet. Sometimes I don't want to belive we are one of the top ten world economies by GDP.
As for the railroad system, we have barely had any. So to a country that Woke up from this problem a few years ago, it will be a while until we see something palpable down here. How many years Canada spent building its system? What about the US?
I think one point is important to notice is infrastructure in Brazil is uneven actually. One can't look at us as an unit. I suppose people can't look at Canada that way either, thogh it is way easier to consider you as a whole. Simplifying my country only makes it harder to realize its qualities and flaws in the end.