Uruguay Farmland Rental Revenue Rises Over 500% In A Decade

Patrick Archer agribusiness, average prices, foreign investment, uruguay

The Uruguay Ministry of Cattle, Agriculture and Fishing just released their annual survey of Uruguay farmland lease contracts, and the report sheds some light on which Uruguay departments are the most active, the most expensive and the most profitable for investors.

Many new investors in Uruguay farmland choose to immediately turn around and lease out their farms, a smart strategy for those seeking a quick cash flow. The Ministry’s new report shows the average lease rate nationwide rose 19% in 2011 to $152/hectare ($61/acre), although lease rates range from less than $50/hectare on the low-end up to well over $300 per hectare on the high-end depending on the land use, location, soil conditions and CONEAT Index.

Soriano, Durazno and Rio Negro (in that order) are the three Uruguay departments with the most hectares currently under lease contracts. In terms of land use, cattle and crops account for 70% of all lease contracts, while forestry contracts posted the largest gain (29%) in 2011.

Uruguay’s most expensive farmland based on active lease contracts can be found in the southern and western departments. The Top Five in terms of average price per hectare for farm leases are Soriano ($296/hectare), Colonia ($227), San Jose ($213), Rio Negro ($194) and Canelones ($178). The most affordable land can be found in the extreme northern departments of Tacuarembo ($77), Salto ($82) and Artigas ($89).

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