Visiting a 1,200-hectare farm in the Department of San José, Uruguay

Visiting a 1,200-hectare farm in the Department of San José, Uruguay

21 August 2023

Last week, the Principals of The Land Group, Francisco Roque de Pinho and Joaquin Labella, accompanied a private Asian investor on a site visit to a property situated in the agricultural heart of Uruguay in the department of San José.

Covering an area of 1,200 hectares, the farm features mostly highly fertile soils, with over 80% of its land dedicated to row crops operated by the farm’s owner and the remaining 20% of less fertile low-lying land leased to a third-party cattle operator. The soils, arranged in a terrace system to minimise erosion, appeared well-maintained, with very clean crops showing no sign of weed infestation.

Satellite images, however, suggest a history of intensive monoculture, which we could address by introducing a rigorous cropping/pastures rotation system like those we have in place across our portfolio. But doing so would require a significant investment since the property displays very little infrastructure, such as fences, cattle facilities, and storage.

The farm shows adequate access to natural water sources (including a creek), which will improve when a water reservoir and irrigation system, currently under permitting, are built.

The property is a fine, well-located agricultural asset with fertile, homogenous soils. However, we ruled it out as a potential acquisition target due to a lack of infrastructure, poor road access, and a steep price tag.  

Accompanying this post are some images from the site visit.

The Land Group