Southern Farmlands Paraguay

As a hard asset that benefits both from production and value appreciation, farmland is unique among the universe of investments. Especially during turbulent times in many countries around the world it makes sense to consider a safe alternative that does not correlate with traditional paper assets and serves as a hedge against inflation.

A finite and diminishing natural resource. A hard asset that correlates positively with inflation. An investment that is often hard to access. 

Copyright Southern Farmlands

The Paraguayan Chaco in the dry season

Productive Farmland features 

  • A low correlation with markets
    • Diversifies a portfolio
    • Serves as a hedge against inflation

  • An asymmetric risk curve on the downside
    • Cannot be downgraded to cero, unlike stocks or bonds

  • No vacancy factor as compared to other real estate
    • Always produces an income stream 

The investment case for farmland by John Taylor of U.S. Trust

Farmland for Beef Production

The world´s population is continuously growing, while the amount of arable land usable for the production of food is declining.

  • The world population is predicted to grow from 6.9 billion in 2010 to 8.3 billion in 2030 and to 9.1 billion in 2050

  • Food demand is predicted to increase by 50% by 2030 and 70% by 2050

Productive farmlands, as well as beef as a commodity, serve as a hedge against inflation.

Paraguayan farmland offers a unique opportunity for investors to expose themselves to this asset class due to it's low price, high production capacity and strong potential for value appreciation.