According to Cushman & Wakefield Adecoagro’s 278,336 hectares across Brazil, Uruguay, and mainly Argentina was worth $919.3 million at the end of September representing just a 2% growth year on year – down from 5.6% growth the previous year and 14% growth in the 12 months up to September 2011. This growth contrasts with the growth seen by the portfolios of BrasilAgro which saw 23% growth and SLC Agricola whose portfolio saw 17.5% growth over the same period. Also contrasting Cushman & Wakefield’s figure is the fact that Adecoagro sold a 3,500 hectare farm land month realizing $2,294 per hectares- a return 15% above the consultancy’s valuation. However, political measures in South America are believed to be affecting the farmland market. Argentina limited foreign ownership of land two years ago and in Uruguay parliament is considering a ban on land ownership by companies linked to foreign countries. Farmland prices in Uruguay have hit $3,472 per hectare – a nine-fold increase over 2002 prices of $385 per hectare. There also appears to be a price growth slowdown in the U.S. as well. Although a collapse in values as seen in the 1980’s is not expected, Iowa State University and Purdue University have both state that the market have started to level off, and Creighton University last month estimated appreciation at its lowest in three years.
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