AAA Welcomes Moves by Brazil to Encourage Foreign Agricultural Investment

May 13, 2011 - PRLog -- Boston, MA, May 14, 2011 -- Brazil may begin to lease out farmland to foreign investors as a means of getting round restrictions introduced last year to prevent speculation.

The news has been welcomed by alternative investment advocacy group, Alternative Asset Analysis, which is keen to see more investment in emerging economies.

The new policy follows the introduction of obstacles last year for foreigners wanting to buy large plots of Brazilian land in a bid to keep speculators away. However, the real estate law has once again been reviewed by the new President, Dilma Rousseff, who is much more keen than her predecessor Luiz Inacio Lula da Silva to drive foreign investment to Brazil. The Agriculture Minister, Wagner Rossi, agreed, stating, "It's important that they come and make these investments.”

The obstacles were put up last year after several large wealth funds from China and the Middle East started buying up large plots of Brazilian land. However, since the reinterpretation of the Brazilian real estate laws last year, investment in land from abroad has fallen by a huge $15 billion, according to those who are keen to see the new more lenient policy taken up.

“It’s essential that President Roussa carries ahead with her plans to lease out the land to foreign investors as many major agricultural industries set to benefit, including the orange, soya bean, coffee and beef farmers who rely so heavily on exports,” explained AAA’s analyst partner, Anthony Johnson.

AAA said Brazil is planning a system similar to the one in Australia, which allows land leasing for 99 years. The Agriculture Minister is also said to examining the possibilities for foreign land purchase, and will be looking at the impact of a number of cases individually.

Alternative investment analysts at AAA claim that Brazil is one of the wisest places to invest at the moment, in terms of return on investment and peace of mind, due to a growing number of sustainable projects, such as the Teak plantations operated by Greenwood Management.

“These kinds of sustainable projects are perfect for foreign investors who want the chance to invest in a growing economy at a time when so many other asset classes around the world are struggling to deliver decent returns. They also offer investors an ethical option, which helps Brazil to continue to thrive,” added Anthony Johnson.

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com