There is a new credit line of the Bank of the Republic. It will give access to small rural investors to farmland purchase in Uruguay. The terms for buying land or ranchs in Uruguay ,have been extended to 30 years and financing is up to 90%.
Agronomist Ricardo García Pintos, President of the group -Un Sólo Uruguay- welcomed the news . He said that it is very important for the productive development of the country. In his opinion, it is necessary to have more people in the countryside, “nothing is more secure and there is no greater wealth in Uruguay than a square meter of land”.
As a result, with the extension of the BROU program, it is possible to access land of up to 300 hectares with a CONEAT 100 index.
An important modification to make access to land easier, is the credit guarantee. Also, a major difference with the previous regime, is that the collateral required is the farmland itself.. Many times, farmers were reluctant to invest or reinvest, given the need to mortgage a property to access credit.
The Bank’s Commercial Manager Gustavo Gomila, said that he perceived great interest on the farmers in this new tool. He considers it “almost a historical fact”. In addition, the extended term will make it possible to pay as the income is generated. Therefore at the same time, will make it easier for small rural farmers to approach the sector.
Since agricultural production in Uruguay varies on the type of business and the situation of each farmer is different, small investors are encouraged to approach the local branch. The Bank’s authorities are spreading the good news throughout the country and going out to the inland cities.
Historically, this has been the concern of social groups such as Un Solo Uruguay. Today, they celebrates BROU’s proactive attitude to stimulate access to buy land in Uruguay. Now, the group is fervently committed to the growth of the rural sector, as the nerve center of the country’s development . The work and investment of local producers is their main focus.
For the President of BROU, Salvador Ferrer, “The agricultural sector is the most relevant sector in terms of the bank’s portfolio; more than 50% of the credit corresponds to it. It represents a little more than US$1.4 billion”. Also, Ferrer considers agriculture as the engine of the economy and expressed his confidence in continuing to implement measures, towards strengthening the bank’s support of the agricultural sector.
Expo Activa 2023 will be held in the Department of Soriano with the sponsorship of the BROU
Although, Un Sólo Uruguay intended that the financing would reach 100% of the value of the farmland, it is recognized as an important achievement, that the rural worker only has to pay 10% to access the purchase of land.
García Pintos considers that the main problem in Uruguay today is the foreignization and concentration of land. Therefore, it is very important to prove one’s status as a rural worker in order to access credit.
When looking for land on sale in Uruguay, the prices of farmland differ according to the type of soil and the productivity of the soil.
Farmland sale average price was U$S 3499, according to the latest report od DIEA on 2021th operations. Compared to 2020th , the increase in value was 6%. The highest average prices were in the departments of Soriano, Colonia and Canelones reaching US$ 6993, US$ 6109 and US$ 5408. On the other hand, the lowest priced sales of land in Uruguay were in the department of Artigas at US$ 1,500 per hectare.
Source: La Mañana Newspaper Oct.20/2022
Presidencia de la República Webpage : https://www.gub.uy/presidencia/comunicacion/noticias/sector-agropecuario-representa-50-del-portafolio-creditos-del-brou
El Observador on Twitter : https://twitter.com/observadoruy/status/1425912958195052552
More info on Agribusiness Investments. https://www.escritorioarrospide.com.uy/invertir-en-uruguay/
Thursday October 20th, 2022 | Por Arrospide
