Read the news these days and you’ll quickly come to realize that our modern food supply network is a precarious one. Any serious disruption and food prices typically shoot up. Even in the absence of natural disasters wholesale food prices have been rising significantly in the past decade. Throw in environmental concerns and it’s no surprise that more of us are getting worried about the sustainability of food supply.
In recent years from our vantage point here in Nicaragua, we’ve noticed that there are an increasing number of people interested in purchasing agricultural land. Although we haven’t experienced it directly, we have been told by brokers operating in Costa Rica, Panama and Belize that the same pattern of interest is also occurring.
Here are some of the reasons why people are interested in investing in agricultural in the region.
- Nicaragua and its neighbors both North and South have low-cost labor. This is a deeply attractive to investors interested in intensive land use.
- The region offers a huge variety of agricultural opportunity from grains to beef cattle, forestry to poultry. Nicaragua in particular offers very fertile land, given its volcanic past.
- Prices are still low across the region especially when compared to more mature markets of North America and Canada as well as in Latin America. See this market overview on Nicaragua real estate by Reveal Real Estate.
- It’s possible to purchase land with plentiful water supply. Nicaragua once again stands out by having one of the largest aquifers in Central America.
When purchasing agricultural land in the region it’s important to conduct a due diligence process very carefully. Questions about the quality of the title are of course similar to any other real estate category that you would be purchasing. But when it comes to agricultural land, questions to do with permits, land use, soil quality, erosion, local workforce, water, electricity, access and so on become especially pertinent. Your analysis should also include storage options, equipment availability as well as export possibilities.
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