September 23, 2014
At the end of June of this year the value of the 304,000-hectare farmland portfolio of SLC Agricola was up 19% from a value of R$2.68 billion (US$1.12 billion) to a value of R$3.19 billion (US$1.33 billion) over the same point last year. The valuation compiled by Deloitte Touche Tomatsu included only land, not including machinery or buildings and included 25,000 hectares under a SLC LandCo joint venture. The increase in valuation is being attributed in large part to the acquisition of two farms in the northeast region of Brazil. However, if excluding these acquisitions, the portfolio valuation increased by 17.4% to average R$10,488 (US$4,385) per hectare. Properties across Brazil have shown widely varying rates of appreciation, ranging from 3.1% to 59% with overall Mato Grosso land values showing above average appreciation and farmland in the Mapitoba region encompassing the states of Maranhao, Piaui, Tocantins, and Bahia posting below-average increases in value.
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