01 September 2011

ARGENTINA: Debate Heats Up Over Limiting Land Ownership...By Foreigners.

                                          WSJ/ M.MOFFETT

     Opportunistic econovore China recently signed an agreement to lease 800,000 acres in the province of Rio Negro.
     In exchange for $1.5B in improvements...farmers would grow ONLY soybeans...exported ONLY to China.
     Not far behind, the Saudis have agreed to lease 500,000 acres in Chaco province...and invest $400M to upgrade infrastructure there.
     These recent land deals and others have alarmed Argentina.
     An estimated 3.4-9.9% of the nation's farmland is already owned by foreigners.
     Several proposed bills would limit foreign ownership to 20% of the rural total...with a max of 2,500 acres per individual foreigner.