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what are the risks of investing in brazilian farms?

I am interested in the risk Americans or other investors would face when investing in Brazilian farmland. Such as coruption, claims against the property or other things that would be particularly difficult to monitor from a distance.

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  • 2 decades ago
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    These are very difficult to answer without seeing the offering documents. Is the investment professionally managed? Do you have any documentation at all? Brazil is not the most corrupt country, in general, but even to in the US you can lose land if the title is flawed, hence title insurance. Additional risks include land quality and currency conversion. Often times, Brazilian farmland has a low nutrient base and little topsoil. Also, the investment may do well in local BRL terms but if the currency depreciated against the USD then you could end up losing money.

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