Overseas real estate is one great way to hedge against a falling U.S. dollar. Investing in timber is another. Now you can make forestry investments in Argentina invest in timber in Argentina where prices are low and values are high.

Forestry is an investment that can be profitable and incredibly good for the world. Today’s trends are disturbing. The global population grows. Natural resources decline. U.S. government debt is at all time highs and rapidly rising. Politicians are bolder in their lies.

All of these factors argue in favor of forestry investments in Argentina.

One way to diversify against currency loss and inflation is real estate and commodities. Timberland has an exceptionally good record on this count because it combines both assets.

Now let’s look at why forestry investments in Argentina makes special sense.

Forestry Investments in Argentina Assets

One huge problem that faces the world is water pollution and the surging costs of dealing with nature’s risks. Argentina has one of the world’s largest fresh water reserves: not only are the great Patagonian lakes, glaciers and continental ice-shelf nearby, but the Guaraní aquifer, the Paraná and Uruguay rivers are part of the territory.

Yet forestry investments in Argentina are a fraction of the cost of properties in Brazil and Paraguay, not to speak of the northern hemisphere.

Forestry investments in Argentina can be a profitable investment in a tangible non-speculative asset that provides growing wealth that takes excess carbon dioxide out of the atmosphere. This can help reduce global warming as it expands your bank account!

Growing trees takes carbon out of the atmosphere and frees the oxygen. One forestry investment in Argentina run by in a eucalyptus plantation in Entre Ríos and pine plantation in Misiones made by Steve Rosberg at Ushay Forestry Company withdraws approximately 35 metric tons of carbon dioxide per hectare per annum.

Steve writes about Forestry Investments in Argentina:

“Our plantations are in some of the highest forestry productivity regions on earth. We plant eucalyptus and pine, which start generating income after eight or nine years, when the forests are thinned. The whole cycle takes between eleven and eighteen years, and provides recreation opportunities in the meantime!

The forecast returns, even with the most prudent and conservative hypotheses, are very good. If you own your property, you should expect to make over 11 % compounded annually. And this is under the assumption that future prices do not rise beyond today’s, which are 30% to 50% lower than those prevailing in neighboring Brazil or Chile, both of which are experiencing timber shortages which are getting more and more severe.

In summary, we sequester carbon dioxide from the atmosphere at a prodigious rate, take the pressure off the natural forests, and make good profits.”

How can you invest in forestry investments in Argentina?

There are several ways in which you can invest. You can buy the land and grow a forest. Or you can buy participations in a forestry investment trust for a single forest cycle.

Buy the Land as a Forestry Investment in Argentina

Buying your own forest is the most lucrative and best option, as you can run your property as you prefer. And, if you wish, you can build a house, have horses, and even obtain full residency rights in Argentina.

Properties are all different, so pricing and potential vary. Some are apt for forestry only, some will have a portion you can assign to nature preservation, others may have a portion suitable for cattle grazing or citrus or fruit production.

All land shares year-round snow-free weather and have substantial real-estate appreciation potential because of their location and natural beauty.

Starting investment is approximately USD 66,000 for a 35 hectare lot (86.5 acres). Rosberg is buying and subdividing a property for this purpose, close to the city of Concordia.

This investment includes the costs of planting and caring for the plantation.

At today’s prices, for an eleven year forest cycle Ushay anticipates that forestry investments in Argentina will generate income in excess of USD 1.3 million plus some cattle grazing revenue and, of course, the appreciation of the land value. The IRR, the compounded annual yield will be well in excess of 10%.

Ushay has other properties for larger investors in the region, ranging in size from 500 hectares to 1200 hectares, and valued in the USD 800,000 to USD 1,500,000 price range.

They have also identified Forestry Investments in Argentina farther north where the climate is subtropical.

Forestry Investments in Argentina Trusts

Investors wanting to invest smaller amounts can buy units in a forestry trust.

In this case, they buy part of a newly planted forest trust (or, in the future, growing forest trust) that gives you rights to income generated by the forest as it is cut.

The land is held in a trust which bears the carrying cost of the land.

Entry investment levels are either USD 10,000, representing the forest on approximately 10.3 acres or USD 2,500 representing 2.34 acres.

At the end of the forest cycle, Ushay expects forestry investments in Argentina will receive at least USD 25,700 for the USD 10.000 investment and USD 5,800 for the USD 2,500 investment.

All trust investments can be sold or transferred at any time, and there is no tax due in Argentina for profits.

Other benefits

Ushay also expects to be able to sell carbon credits originated in the plantations that we manage once the Kyoto Protocol Clean Development Mechanism comes into operation.

If and when this happens, 80% of the net proceeds will be for investors’ benefit.

Forestry Investments in Argentina Taxation Benefits

The Argentine forestry legislation exempts forestry investments in Argentina from most taxes and allows a method of accounting for forest growth that eliminates most of the income tax.

No guaranty can be given that this will continue to be the case for the duration of the investment. However, as soon as the whole project is underwritten we will apply for the special tax stability guaranty foreseen in the legislation.

Visiting Forestry Investments in Argentina

Investors are always welcome to come and visit the properties and meet the Ushay team. This is one of the very enjoyable aspects of our activity, both for our investors and for Ushay.

As there are many reasons to visit Argentina including forestry investments in Argentina.

Many of the questions regarding ownership and title are addressed at Ushay.com/realestate.htm

Please email your questions and requests for further information to rosberg@ushay.com.

Gary & Merri Scott have green investments in their North Carolina Farm (Merrily Farms) and Ecuador Plantation (Rosaspamba) shown below:

“Merrily Farms in the Fall”

“Rosaspamba’s Virgin Rain Forest”

Forestry Investments in Argentina