The general strategy is capturing higher income
The different crop rotation, intensive use of the land with irrigation and precise agricultural techniques combined generates attractive cash flow. The annual cash flow is based on the yield and income stabilization due to the implementation of irrigation. It is possible to irrigate corn and soybean because of the water resources and the investment in technology.
SELECTING THE ASSET
Selecting the asset to buy or lease is a process of extensive analysis in order to determine the real potential. The main aspect analyzed are:
· Geographic location, access
· Soils quality, characteristics referring to irrigation of those soils
· Water resources (Cubic meters available, volume and flow)
All these variables are evaluated in order to identify the asset that will capitalize the increase in productivity under the right use of the water. All these will increase the cash flow of the asset and the value as well.
Bearing Agro differentiates from other operator in many ways:
· Highly qualified team, motivated with extensive experience developing successful projects by transforming land through irrigation.
· Deep knowledge in agricultural areas in South America as a consequence of decades of work in the field.
· Wide knowledge of the water resources of the country (rivers, reservoirs, aquifers): capable of identifying the best regions and assets for this project.
· Superior knowledge in irrigation technology and the proper installation
· Track record on irrigation based investment models
· The team has broad understanding in value added crops and accuracy agriculture increasing yields per hectare.
The Value proposal for the investor is focused around different elements
· Invest in the agribusiness with irrigation, a proposal of higher productivity and stability.
· Invest in a differentiating project with a clear value creation fundamental based on the correct selection of the asset with the proper water resources.
· Invest in an important economic sector with strong fundamentals and increasing relevance in the world.
· Obtain a competitive annual return
· Unlock land value through transformation with irrigation
· Take advantage of the window of opportunity to invest in land in South America and capture the best assets with water resources