BrasilAgro is one of Brazil‘s largest companies in terms of arable land and its core business consists of the acquisition, development, operation and sale of rural properties suitable for agricultural activities. We acquire rural properties that we believe offer significant potential for cash flow generation and value appreciation by holding the asset and developing profitable agricultural activities. Once we acquire our rural properties, we begin to implement high-value-added crops and to transform these rural properties by investing in infrastructure and technology, while also entering into lease agreements with third parties. In line with our strategy, when we understand a rural property has reached its optimal value, we sell it to capture the capital gains.
Since we first launched our operations in 2006, we have acquired a total of 10 rural properties, and we have sold three farms. Our business plan considers the price appreciation of our rural properties as the principal vector of our financial returns. We believe the value of a rural property is directly related to cash flow per unit of area. Accordingly, we seek to maximize the return on our investments by:
- identifying, acquiring, developing and operating rural properties that offer high potential for price appreciation; and
- optimizing the returns and yields of our rural properties by implementing agricultural technologies and techniques that are considered benchmarks in the industry.