Restrictions 'to be eased' on Brazilian farm land for sale
Date added: 10th May, 2011 at 10:34
(view all articles from May, 2011)
Categories: Natural Resources, Property News
People looking for Brazilian farm land for sale may be among the speculators that are worried about the restrictions in foreign investment when it comes to such plots, but it has been announced that the government is looking to ease the rules to attract overseas money.
Reuters reported that minister of agriculture Wagner Rossi was hoping to encourage the leasing of sites to people abroad.
"It's important that they come and make these investments," the news provider quoted him as saying.
"What we don't need is land transfers, but rather partnerships," he continued, adding that Brazilian farm land for sale should still be able to be bought outright by foreigners.
The government tightening the regulations on overseas investment in agricultural spaces last year due to concern over the large-scale purchase of plots by sovereign wealth funds, but this policy has not been without its problems, the information source noted.
According to two Brazilian analyst groups cited by Reuters, the amount of investment that was put on hold when the rules were changed totaled at least $15 billion (£9.16 million), while Mr Rossi admitted that expertise from abroad was needed.
The government is considering looking at Brazilian farms for sale and making decisions over whether overseas investors can buy plots proposal by proposal, the news provider stated.
"If it is approved, there won't be a problem. You just go ahead and buy your land," Mr Rossi explained.
Even now it is not impossible to buy Brazilain farm land for sale, with overseas investors allowed to purchase between 250 and 5,000 hectares, the news provider noted.
President Dilma Rousseff is hoping to encourage the inflow of foreign money into the country but stop speculation from sovereign wealth funds like those in China and the Middle East, which is why the reinterpretation of real estate rules last year by the general attorney's office are being reviewed.
One of the ideas is to take on a leasing system inspired by that used in Australia, where land can be rented on a 99-year contract, Reuters reported, although the amount of time investors can take out plots may be shorter.
Those looking to buy Brazilian farm land for sale may be interested in the ethanol production industry, as the country is the source of a large proportion of the world's supply of the fuel and many of the cars running in the nation are powered by this kind of energy.
According to the Renewable Fuel Association, Latin America's largest economy produced more than 6.9 million gallons of the substance in 2010 and the territory's energy minister Edison Lobao has said state-owned firm Petrobras has been asked to increase its output of the material.
"What we plan to do is give resources to ethanol plants and not sugar plants," Reuters quoted Rossi as saying.
"It's strategic. Right now we must improve our production of ethanol," he added.
For anyone wishing to invest in the full potential of Brazil, Property Bond Brazil has an excellent array of Brazilian farm land for sale.
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