Land Values Rise Nearly 4% In Brazil
May 11, 2010
Rural land values in Brazil have remained stable to even increased, according to Dr. Michael Cordonnier, Soybean and Corn Advisor, Inc., and a consulant to LandOwner Newsletter. Dr. Cordonnier points to data from the consulting firm AgraFNP which says the average price of rural land in Brazil rose 3.9% the first two months of 2010 compared to the same period a year earlier. The firm pegged the average price at R$4,500 per hectare or US$1,023 per acre. Land used for sugarcane production is some of the most expensive land in Brazil, whereas unimproved pastures are some of the cheapest, the report states.
The most expensive land in Brazil is found in the southern region which includes the states of Parana, Santa Catarina and Rio Grande do Sul. During the first two months of 2010, the average price of rural land in that region was R$9,486 per hectare or US$2,168 per acre, which was up 7.5% compared to a year earlier.
Southeastern Brazil, which includes the state of Sao Paulo, had the second most expensive land at R$7,868 per hectare (US$1,798 per acre), which was up 3.1% from the previous year.
In the center-west region, which includes Mato Grosso, the average price was R$3,487 per hectare (US$797 per acre), up 3.8% compared to a year earlier. In northeastern Brazil, the average price was R$2,028 per hectare (US$463 per acre), which was up 4%. In northern Brazil, the average price was R$1,423 per hectare (US$325 per acre) which was up 5.7%.
The exchange rate used was 1.75 Braziliam reals to 1 dollar.
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