|
Go
To: Investing
Farming &
Ranching
Argentina
is a land of vibrant beauty and vivid contrasts that
stretches for about 2,300 miles from north to south,
finally terminating in the famous Tierra del Fuego at
the southern tip of the South American continent. A
country bounded by the towering Andes Mountains to the
west and the Atlantic Ocean to the east, Argentina displays
in her vast realm virtually every type of land and climate
imaginable. The country boasts both the highest and
lowest points on the continent of South America, with
Cero Aconcagua rising nearly 23,000 feet in the Andes,
while the Gran Bajo sinks some 350 feet below sea level.
Argentina
has a rich and widely varied history of European exploration
and settlement, as well as many sites of archeological
interest that shed light on the indigenous inhabitants’
lives before the arrival of the Europeans. The first
European explorers to set foot in modern Argentina sailed
up the River Plate estuary in 1516, in search of a southwestern
trading route to the Far East and India. A mere 4 years
later, Ferdinand Magellan would finally discover the
elusive straits that now bear his name, far to the south
in Patagonia, nestled among the many islands of the
Tierra del Fuego (Land of Fire). In 1536, the first
settlement of Buenos Aires was founded on the shore
of the River Plate and by the end of that century, 25
towns had been established in what is now Argentina,
of which 15 still survive to this day. Many historic
European ruins and pre-European archeological sites
are well preserved in Argentina, providing an exceptional
window into the colorful past for the modern day visitor.
The population of Argentina today still reflects her
strong European ties, with over 90 percent of the population
claiming recent ancestry from either Italy or Spain.
Italian is still spoken by many Argentines, in addition
to the local form of Castilian Spanish brought with
the original early Spanish settlers. Many other European
countries contributed their citizens to the settlement
of Argentina over time, and still today there are towns
and areas where descendants keep their ancestors' languages
and traditions alive. German, Irish, Welsh, British,
Russian and Scots are in evidence in various parts of
the country, and in some towns the age-old traditions
of those settlers are still observed as a regular way
of life. In the town of General Belgrano for example,
in the Province of Cordoba, one will find a town with
many Germans still wearing their Lederhosen and their
alpine hats, dancing the Polka nightly in traditional
German beer halls and celebrating the Oktoberfest. They
are as likely to be conversing in German as in Spanish,
and are equally proud to be both German and Argentine.
Today
modern Argentina is known world wide for many reasons.
The city of Buenos Aires, the capitol of the county,
is known as “the Paris of South America”
for its’ classic European architecture and wide
tree lined boulevards bounded by outdoor cafes. A very
cosmopolitan city with many lush parks, plazas, historical
statues and a busy international port,” Buenos
Aires is the economic nerve center of the country and
home to nearly a third of all Argentines. In many areas
of the city, one is hard pressed to distinguish Buenos
Aires from some of the classic European cities in terms
of its architecture, wide streets, outdoor eateries
and the general ambiance of the people and city. Perhaps
as famous as the architecture of B.A. is the Tango,
a highly expressive dance that is deeply ingrained in
the Argentine psyche, a dance which is still very much
alive and well in the late night Tango clubs of the
city. The vast and fabled Pampas grasslands stretch
away from B.A. in all directions and support an exceptionally
rich agricultural and livestock tradition still romanticized
by the Gaucho, the Argentine cowboy. These Pampas contain
many thousands of square miles of flat, grass covered
fertile lands, free of rocks and trees (other than those
planted by settlers), with a mild climate very conducive
to farming and ranching, the two principal activities
found in the region. As a result of the vast area of
good soils and climates in Argentina, which include
the Pampas, the country is one of the largest producers
of food in the world.
One
particularly world famous area of Argentina is the vast
Patagonia, an area that extends from the Rio Colorado
in the north, to the Beagle Channel in the far south
of Tierra del Fuego, encompassing approximately one
third of the county. This is the isolated land of the
great Estancias, sheep ranches that cover sometimes
up to a million acres at a time of the arid beauty that
is much of Patagonia. In the far west of the Patagonia
are the Andes and the lakes regions, an area of incredible
contrast, with vibrant blue lakes full of cold, crystal
clear waters that pour down from the high Andes in the
annual snow melt. In this region of majestic mountains
and lush alpine forests are found world class snow skiing
resorts, white water rafting and kayaking, hang gliding,
paragliding, mountain climbing and some of the best
trout and salmon fishing in the world. The region of
Patagonia is now being discovered by the rest of the
world and one will meet tourists and residents from
many different countries while traveling in the area.
Farther south in the Patagonia are the glaciers, huge
slowly moving sheets of ice that attract intrepid tourists
from the world over. Several of these are found in National
Parks, which boast some of the most spectacular scenery
imaginable, far from civilization and unspoiled in their
beauty. Farther south still in Patagonia is the “land
at the end of the world”, the islands of the Tierra
del Fuego, normally reached by plane, with most tourism
activities originating out of the town of Ushuaia. In
the lands of Tierra del Fuego are found many forms of
wildlife not easily seen in other places, such as whales,
penguins, sea lions and a wide variety of birds.
In
2001, the economy of Argentina was thrown into a tailspin
as the country was forced to default on international
loans. The Peso, which had been tied to the U.S. dollar,
was released from the U.S. currency and allowed to find
its own value. It has remained stabilized now for quite
some time at near three Argentine Pesos per U.S dollar,
effectively substantially increasing the buying power
of the U.S. dollar and other currencies in Argentina
dramatically. As the economy recovers from the devaluation,
many opportunities have arisen for investment in Argentina
by foreigners, due to the substantially increased buying
powers of foreign currencies. Land in Argentina is one
of the best values for investment purposes, since it
is very cheap by world standards, yet of very high quality
in terms of its’ productivity. Very large tracts
of land can still be found and purchased in Argentina
and it is not at all uncommon to see good ranches for
sale that are measured in the hundreds of thousands
of acres in size. Many times the “per acre”
prices on the larger ranches will be in the $40 to $50
U.S. dollar range per acre or less. Top agricultural
land is also still a very good purchase by world standards,
and some of the best farming lands on the Pampas and
in other areas of the country can still be purchased
for between $1,000 and $2,500 per acre. These attractive
prices have sparked a movement by multinational farming
companies and the level of farming activity is increasing
noticeably, the result being that lands formerly used
for cattle are being converted to farm use and prices
are slowly climbing. As the cattle ranchers are forced
to less productive lands by the irresistible economics
of farming such crops as Soy and various cereals, these
less productive lands in turn are increasing in value,
presenting more opportunities for successful investments.
As
Argentina redefines its’ economy, investment opportunities
will continue to be realized, creating new opportunities
in their wake. Whether you are interested in buying
land in Argentina, moving here to live, or simply interested
in visiting the country, please don’t hesitate
to contact us for advice or information. While we are
not a tourism company, we are always happy to offer
advice to help ensure that your trip to Argentina is
a pleasant and enjoyable experience and that it both
meets and hopefully exceeds your expectations.
|