We grow crops on leased and owned farms across our operating region to optimize the use of our capital and maximize returns. We apply our business model to identify, lease, acquire and operate farms in order to expand our planted hectares because expansion of planted hectares is a primary driver of our growth in terms of both crop production and revenues.
The choice of the best regional agricultural lands for commodity production translates into high productivity levels from day one. This enables constant appreciation of the value of these lands.
Our farm selection process is designed to locate areas with abundant rainfall, productive soils and other qualities that permit cost-efficient crop production and where recent or projected infrastructure improvement can unlock productive potential.
In evaluating a potential land purchase or rental, we use satellite imaging and historical weather data to perform an initial screening of the land for quality and productivity. We seek to develop an accurate map of the property, determining its topography and the percentage of the land that can be used for agricultural production, estimating flood and other risks such as disease or drought, as well as soil quality and productivity.
We believe that our methodology for identifying and evaluating farms helps minimize the costly mistakes of leasing or acquiring less productive properties.
A significant portion of our intended growth in production is expected to come from an increase in the number of leased farms. We typically lease farms for terms of one to six years, which gives us visibility on our production capacity into the future. All the farmland we lease can be double cropped, which allows us to increase the number of planted hectares on which we grow crops.
We make strategic purchases of productive farms that have the potential to appreciate in value and strengthen our asset base.
We are currently operating owned lands in Pampa Húmeda (the “Wet Pampa”) and in the Northeast region in Argentina, in the Northern and Southern coastline regions and Central and Northeast regions in Uruguay, in Santa Cruz de la Sierra in Bolivia and in the Mato Grosso region in Brazil.