How to Rent a column value for the cultivation of soybean in Argentina
Author: Michelle Leonny
Rental values of fields for planting soybeans will increase to 20 percent this season compared to the previous one, with a revival of the leases.
The increase in values is attributed to the best areas and the climatic, despite La Nina, and price and liquidity of the sector increased by gains from last season.
According to a study of movement CREA, soybean cultivation is the largest area, 60 percent of Argentina, and in the 2010-2011 season to begin sowing cover 18.8 million hectares and will produce 52 6 million tons with an investment of 6 billion dollars.
The rental price range for this year ranges from four bushels of soybeans an acre, which can be paid in the country’s northern fields, and 20 of the best area in the country.
However, as usual, there are different situations. A field in a marginal area, which received good rainfall, is trading above the normal value.
Analysts said there was high demand for rentals and to begin implementation soy, lots are already committed. According to CREA, the total lease the entire campaign including other crops will consume an investment of three billion dollars.
Guillermo Villager, Open Agro, said in turn that the prices went up, preferably in the core area of the country, while in marginal areas remained stable or increased much less.
Christian Beláustegui, president of Argentina Land Company (CAT), meanwhile, said that in good agricultural areas rents rose nearly 10 percent.
For Villager, however, the business of planting leased fields became more risk by rising fixed costs such as rentals. He explained that, in general, “the contracts back to the previous mode” to the drought that is, by the hundredweight fixed and not, as in the past year, a percentage. ”
“So the owners of the fields return to zero risk business and surprises, for better or worse, impact only on the final outcome of the tenant” appropriated.
Therefore imposes “work hard on creating partnerships between producers, owners and suppliers, i.e. what we call associative.”
Still, in marginal areas, according Beláustegui, contracts were signed last year by two or three years and, in such cases will remain the modality of the percentage, or mixed.
Also detected the arrival of exporters to market the leases to produce soybeans, as farmers will have two seasons with the mode of retaining the grain.
Cargill and Dreyfus are more tempting to produce themselves, but the movement is still nascent.
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Posted in business info, company info, Uncategorized | Tags: business, campaign, country, investment, liquidity, price, Rental values, sector
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