Wanted: Renter seeking tropical adventure farming up to 15,000 acres north of the equator in Boa Vista, Roriama, the northern most state in Brazil. No, I'm not kidding, the rent is only $6 per acre for potential 50-bu. soybean ground that is currently pasture. The beans are exported via the Amazon River port owned by the Maggi Group, a 12 hour drive south of the farm, but there is a local co-op for storage. 

What gives on the cheap rent? Brutal soybean profit margins the past several years and higher-than-expected start up costs have drained the investor group's capital, said Ed Harer, an Ohio farmer. Ed and his brother, Richard, launched an investment group there, Good View, LLC about five years ago. Their property has 580 acres developed for crop production, but all of 14 farm parcels have potential for cattle and crops. Land is located in savannah (not rain forest) regions, but minimal land clearing for crop production is required for most of the farms. Lime and phosphorus have been applied to correct the savannah's acid soils.

"Brazil's soybean markets have gone through two years of hard times," said Harer. "Land has been a good investment here but we didn't hold enough money back" for operating costs, which can run about $314 per acre, depending on soil correction. (That's about the same as the $320 averages for much of Mato Grosso. ) He estimates land values have appreciated from about $100 an acre for raw land to $650 per acre for developed ground in that area over last five years.

The Harer Brothers run a farm drainage business in Bloomville, Ohio. They hired a farm manager and have farmed in eastern Mato Grosso, Brazil, for 12 years, so are experienced in frontier farming. In 2004, they traded some of that MatoGrosso land--five acres for one--to develop land in far northern Brazil, much closer to Venezuela and Guyana than Sao Paulo. As infrastructure improvements are made, this region has a transportation advantage to Europe or even Asia via the Panama Canal. Prices in their location typically run about the same as Chicago, Harer said.

If bean prices stay about $10 per bu. in the U.S., Harer still thinks a profit can be made in this virgin farming area. But time is of the essence, since Boa Vista is north of the equator and on the same planting schedule as North America.

DTN Brazilian correspondent Kieran Gartlan believes Roriama is well situated for export markets and could possibly acquire fertilizer and fuel less expensively from Venezuela than more traditional farming regions of Brazil. That was part of Good View's initial strategy, but fertilizer freight has been higher than expected. One downside from Gartlan's tour to Roriama: "I have never seen such sandy soil...it was like walking on the beach," he said.

Harer doesn't regret his investment. "The opportunity is still there, but you need capital to run these farms," said Harer.

Despite the cash crunch this year, Harer thinks Brazil has added spark to his farming career. Farmers made record incomes and huge land appreciation in North America the past few years, but farming in Brazil has been "fun," he said. "It's an adventure."

For information and photos go to www.goodviewllc.com.

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