Thursday, April 28, 2011

Argentina Moves to Limit Foreign Speculators in the Agricultural Space

A few posts ago I noted the trend by agriculture rich governments to limit foreign ownership by speculators of cropland. Here is the latest update from Argentina, the second largest producer of soybeans after the USA and an important source of cattle and wheat as well. Most moves of this nature are aimed not so much as the small investor but large foreign funds - including sovereign wealth funds - namely Chinese and Middle Eastern ownership.

Argentina Pres Sends Congress Bill Limiting Foreign Land Ownership
Argentine President Cristina Fernandez has sent a bill to Congress placing strict limits on the amount of farm and rural land that foreigners can purchase, throwing cold water on a wave of foreign buying of farmland in the agricultural powerhouse.

Under the proposed bill, foreigners will be limited to buying 1,000 hectares (2,500 acres) each and a nationwide survey will be conducted to ensure that no more than 20% of the country's total rural area is in the hands of foreigners, Fernandez announced.

Existing landholdings held by foreigners will not be affected, Fernandez said.

Source: CME News For Tomorrow
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