On August 9, we signed two rental agreements for a Dutch investor who owns two crop farms in San José, Uruguay. He decided to invest in 2013 when the price for soy was 600 USD per ton and the price for good quality cropland 8.000 USD per hectare. These prices are now 300 USD per ton and 5.500 USD per hectare. His short-term return on investment is less attractive, but these values will recover. The rental agreements are for 3 years and payment upfront in US dollar. Fully guaranteed with the money already on his account. Cattle grazing agreement will be done with a nearby cattle farmer with a separate contract that ends at the same time as the crop contracts.
On May 22 we signed a rental contract for two crop farms in Flores and San José, Uruguay on behalf of a US investor. The rental agreements are for 4 years and payment upfront in US dollar. Fully guaranteed. Cattle grazing agreement will be done with a nearby cattle farmer on one farm and at the other farm we will manage it on his behalf. That allows us to also keep an eye on houses, machinery etc. Starting winter crops with wheat and then later a short cycle soy bean in January.