Nicaragua Farmland
WHY NOW COULD BE THE SMARTEST TIME TO BUY AFFORDABLE FARMLAND IN NICARAGUA Dear Concerned Investor, While what you are about to discover may not yet be headline news, it isn’t going to be long before everyone wished they had had the foresight to act sooner. Timing isn’t everything in successful investing, but it sure makes sense to be buying an asset class when it stinks rather than waiting for it to be so popular that everyone wants it and the value has sky-rocketed. Average investors sell at market bottoms out of fear of further losses. Savvy investors pounce when markets are depressed and sell when things get crazy. The name Nicaragua conjures up all kinds of negative memories for investors 50 years of age or older. But the name has a very different reaction to 40 year olds and younger. The older you are the more time you have had to form opinions – and the natural tendency of humans is to gravitate to the line of least resistance. It’s our nature. The images on TV in the mid 1980’s of Nicaragua’s revolution, and President Reagan’s Contras is stark. But understanding and learning what has taken place since, isn’t found on TV nowadays and it is here where amazing financial opportunities lie. You may have read that global food production is being undermined by land degradation and real shortages of farmland and water resources. This subject too isn’t on TV every night – it would probably cause massive panic if it were. The problem is making feeding the world’s rising population – projected to reach nine billion by 2050 – a daunting challenge, according to the United Nations Food and Agriculture Organization (FAO). Over the past fifty years the world has witnessed a significant rise in food production, but in many places those better yields have been associated with agricultural practices that have degraded the land and water systems, so say the FAO’s State of the World’s Land and Water Resources for Food and Agriculture (SOLAW) report. Competition for land and water is increasing – including competition between urban and industrial users – as well as within the agricultural sector between livestock, staple crops, non-food crops, and biofuel production. Climate change is expected to alter the patterns of temperature, precipitation and river flows upon which the world’s food production systems depend. The rates of growth in agricultural production have been slowing and are currently only half of what they were at the height of the ‘Green Revolution’ – the period between the 1940s and the late 1970s when the world’s agricultural productivity rose dramatically. The FAO report paints a picture of a world experiencing an increasing imbalance between availability and demand for land and water resources at the local, national, and international levels.
Few people realize the precarious nature of what the world faces if arable farmland and fresh water supplies are threatened. Today’s food and potable water supplies are more fragile than ever before. Just one serious disruption — a nuclear accident, natural disaster, crop disease or GMO catastrophe — could bring global food and water supplies crashing down. The chain reaction in all sectors, and especially in financial markets, could be epic. Even without the possibility of disasters, food inflation is on the rise. You have witnessed the higher prices at the supermarket, and wholesale food suppliers have seen prices skyrocket as much as 30% a year (according to the United Nations). The same is true for the price of fresh water, whether that be from your local water utility or the price you pay for bottled water. Global agricultural companies are now forced to search for farmland where an abundance of water is available. The problem they face however, is too few countries have an abundance of life’s most precious resource. One country though that had gone unnoticed for decades, is seeing unprecedented interest. That country is Nicaragua. Nicaragua sits atop of one of the largest aquifers in the entire American Continent, second only to Canada. The country is also home to the 19th largest freshwater lake (Lake Nicaragua) which is surrounded by some of the most fertile agricultural soils in the tropics. Nicaragua also has 19 volcanoes that are millions of years old that have helped build up the very fertile black soil that is now so wanted. With the countries current low cost labor force and good work ethic (when compared to other Countries in Latin America), Nicaragua has become a hot-bed for global farmers – especially Asian. Land prices are on the move and are expected to rise rapidly over the next decade. Agricultural property situated between the lake and the Pacific Ocean is getting harder and harder to find as locals understand that this region has been growing crops for centuries with yields higher than neighboring countries. Affordable farmland prices here will soon be a thing of the past. Now is the time to buy, and with water earning the nickname “the new liquid gold,” it’s hard to tell how high values might go. According to the FAO report, one of the greatest threats to farmers and the global population at large is the loss of soil quality, followed by biodiversity loss and water resource depletion. Nicaragua may be a country with a checkered and troubled past, but all signs point to a very different and remarkable future. Billionaire financier George Soros and Investment Guru Jim Rogers are both extremely bullish on food. In a 2011 Time article Rogers said, “Agriculture is going to be the big thing in the next 20 years, the best thing you can do is to become a farmer as that is where the money is going to be made. Anything to do with agriculture – seeds, tractors, fertilizer, and water is going to be extremely profitable over the next 20 years.” We are taking advantage of this unprecedented opportunity and can help you do the same via our private owner timberland and coconut programs. Contact us at [email protected] if you would like to learn more.
Few people realize the precarious nature of what the world faces if arable farmland and fresh water supplies are threatened. Today’s food and potable water supplies are more fragile than ever before. Just one serious disruption — a nuclear accident, natural disaster, crop disease or GMO catastrophe — could bring global food and water supplies crashing down. The chain reaction in all sectors, and especially in financial markets, could be epic. Even without the possibility of disasters, food inflation is on the rise. You have witnessed the higher prices at the supermarket, and wholesale food suppliers have seen prices skyrocket as much as 30% a year (according to the United Nations). The same is true for the price of fresh water, whether that be from your local water utility or the price you pay for bottled water. Global agricultural companies are now forced to search for farmland where an abundance of water is available. The problem they face however, is too few countries have an abundance of life’s most precious resource. One country though that had gone unnoticed for decades, is seeing unprecedented interest. That country is Nicaragua. Nicaragua sits atop of one of the largest aquifers in the entire American Continent, second only to Canada. The country is also home to the 19th largest freshwater lake (Lake Nicaragua) which is surrounded by some of the most fertile agricultural soils in the tropics. Nicaragua also has 19 volcanoes that are millions of years old that have helped build up the very fertile black soil that is now so wanted. With the countries current low cost labor force and good work ethic (when compared to other Countries in Latin America), Nicaragua has become a hot-bed for global farmers – especially Asian. Land prices are on the move and are expected to rise rapidly over the next decade. Agricultural property situated between the lake and the Pacific Ocean is getting harder and harder to find as locals understand that this region has been growing crops for centuries with yields higher than neighboring countries. Affordable farmland prices here will soon be a thing of the past. Now is the time to buy, and with water earning the nickname “the new liquid gold,” it’s hard to tell how high values might go. According to the FAO report, one of the greatest threats to farmers and the global population at large is the loss of soil quality, followed by biodiversity loss and water resource depletion. Nicaragua may be a country with a checkered and troubled past, but all signs point to a very different and remarkable future. Billionaire financier George Soros and Investment Guru Jim Rogers are both extremely bullish on food. In a 2011 Time article Rogers said, “Agriculture is going to be the big thing in the next 20 years, the best thing you can do is to become a farmer as that is where the money is going to be made. Anything to do with agriculture – seeds, tractors, fertilizer, and water is going to be extremely profitable over the next 20 years.” We are taking advantage of this unprecedented opportunity and can help you do the same via our private owner timberland and coconut programs. Contact us at [email protected] if you would like to learn more.
