The prospects of Portuguese farmland
Portugal’s economy is on the rise. It is a very touristic country the number one most profitable sector services, and the following is agriculture representing 3% of the national GDP. Agriculture is considered the fastest-growing export sector, and it plays a significant role in job creation.
The majority of continental Portugal – 50.8% – is dedicated to agriculture. This includes growing grain, potatoes, tomatoes, olives, almonds, grapes, and animal and fish farming agriculture like sheep, cattle, goats, swine, poultry, and dairy products.
Portuguese Farmland Prospects
At Pela Terra, the current rent for the land we are acquiring is 4-6% annually, and based on current prices, we expect land to increase 20-40% over the next ten years. Our research has shown that converting land to organic can increase rent by 20% and land value by 25%.
Converting land to organic is a time-consuming process – it usually takes between one to three years, depending on the types of crops. One of the requirements is to grow the plants on ecologically balanced agricultural principles and specify further; this pertains to crop rotation, green manure, organic waste, biological pest control, mineral and rock additives. One of the most well-known ‘rules’ is that organic farming exclusively uses pesticides and fertilizers considered natural, not petrochemical.
Investors need to be aware that leveraging land investment could increase all figures by up to 2X.
At Pela Terra, our farmland investment fund is focused on almond tree crops. Almonds are a centuries-old Mediterannean crop. The trees’ light pink blooms are celebrated each spring with regional festivals. Portugal even boasts an almond-route train trip touring the verdant acreage of the northern countryside. Almonds are the equally valuable but largely obscured cousin to olives in Europe.
Almond Trees as an Investment
At our very core is the pursuit of sustainable food security and investor returns through a portfolio of farmland promoting regenerative agriculture and restoring soil health. We chose almond trees because they can feed both our population and soil health.
Almonds are one of nature’s superfoods. They are heart-healthy, protein-packed, and shelf-stable, making them a perfect whole-food snack. Their use is expanded beyond raw consumption through added-value products like almond milk, flour, pastes, and nut butter. Of course, we couldn’t overlook that it is a $7.6 billion market with an estimated 12.6% growth curve.
Currently, 80% of the world’s almond crop is produced in California, where water sources are stretched thin. Concentrating the bulk of the world’s almond supply in one area poses economic, political, and climate threats. And despite the environmental longevity of Almond orchards, the protracted world market transport from California to Asia, and the European Union negates these gains.
Why almond trees?
- Lowest-Risk Returns
- Successful Regenerative Demonstrates Yields
- Nutrition Converting Conventional Farming
- Consumer Product Diversity with Processing Facility
Enhancing Agricultural Potential
The Pela Terra project aims to create safe, long-term wealth preservation opportunities for our investors. We believe that the only way to de-risk against climate change, varying input costs, and changing consumer behavior is through a regenerative agriculture approach. The cornerstone of this process fully understands soil health. We use a double-bottom line to evaluate the outcome of our project and measure success via both fiscal performance and its positive social and environmental impact.
Investing in farmland has a lot of potential, low risk, and high returns. Making a suitable investment and for the right reasons is of the utmost importance, and to do that effectively, you need people you can trust that can guide you.
The Pela Terra Farmland fund is the largest project in Portugal pursuing organic cultivation. We care about economic prosperity and sustainable development, and we are already counting numerous investors. If you have any questions regarding how it all works, please book an appointment with one of our directors.