““Opportunities for Investors, Opportunities for Investors, Managers, valuers and consultants”Managers, valuers and consultants”

Brazil Iowa FarmsBrazil Iowa Farms

Six Year Anniversary Of Six Year Anniversary Of Brazil Iowa FarmsBrazil Iowa Farms

66

Brazil in World Agriculture/Main Crops

Soybean

Maize

Sugar Cane

Coffee

Orange

Beef

Poultry

Tobacco

2nd

3rd

1st

1st

1st

1st

2nd

2nd

Prodution

RankingProduct

1st

3rd

1st

1st

1st

1st

1st

1st

Exports

Portugal

Greece

Ukraine

Bosnia

Croatia

Macedonia

Iceland

Serbia & Montenegro Rep’s Norway

Finland

Switzerland

Belarus

Austria

Hungary

Romania

Holland

Lithuania

Italy

Poland

Estonia

Czech & Slovak Rep’s

France

Ireland

Belgium

Albania

Spain

BulgariaEngland, Scotland and Wales

Germany

Latvia

Denmark

Sweden

Arable land equates to 33 countries in Europe.

Source: John Deere

Bahia is one of the prime soybean & cotton growing regions in Brazil

Brazil Iowa Farms

Fazenda Iowa operates as Grupo Fazenda Iowa operates as Grupo Iowa in BrazilIowa in Brazil

Brazil Cotton Featured on JC Brazil Cotton Featured on JC Penney TowelsPenney Towels

John Deere John Deere Tractors Tractors

Made In Iowa Made In Iowa For Export to For Export to

BrazilBrazil

Iowa I – Line up of tractors, red and Iowa I – Line up of tractors, red and green!green!

Our new 90 foot planter – 36 rowsOur new 90 foot planter – 36 rows

Brazilian Rules For Large Land Sale Transactions to Foreign Investors

• Currently little knowledge on who owns land and who new buyers are. New rules will track ownership.

• No New law or constitutional amendment. New Rules controlled by INCRA (Govt entity that registers titles)

• Buyers must submit plan of development to Ministry of Agriculture and disclose ownership. Must be done for foreign buyers to get title.

• Is not a de-facto ban on new purchases. No legal basis to ban new purchases

3,43,429,829,8

If You Build It, They Will Come

Brazilian Field of Dreams

Regional infrastructure developing as was envisioned

Investment in discovery process paying off

Railroad = better basis

Brazil East-WestBrazil East-WestRailroadRailroad

• Boost flow of production of Bahia• Connect region with other industrial

centers• Connection to North-South Railroad• 1490 km (925 miles) at a cost of R$ 6

billion by 2012

Ilheus to Caetite Completed by July 2012Caetite to Barreiras Completed by July 2013Barreiras to Figueiropolis Still in planning stage

BarrierasLEM

Roda Velha

Iowa I

Iowa III

Iowa II

RailroadBR20

Brazil Corn Area Harvested By Year

Brazil has made great economic progress succeeding on the strength of its natural resources.

Resource based growth has not been fully exhausted but barriers exist to blocking Brazil from achieving 1st class economy including:

1.Cultural2.Labor3.Judicial4.Capital5.Civil / Political

RegisteringProperty

GettingCredit

PayingTaxes

EnforcingContracts

55thth USA USA

127127thth Brazil Brazil

12 6 8 62

122 89 98 152

Source: World Bank

RegisteringProperty

GettingCredit

PayingTaxes

EnforcingContracts

55thth USA USA

127127thth Brazil Brazil

12 6 8 62

122 89 98 152Countries Ranking BetterCountries Ranking Better

Than BrazilThan BrazilCountries Ranking WorseCountries Ranking Worse

Than BrazilThan Brazil59 Kazakhstan73 Mongolia76 Zambia104 Ethiopia107 Bangladesh126 Mozambique

Source: World Bank

RegisteringProperty

GettingCredit

PayingTaxes

EnforcingContracts

55thth USA USA

127127thth Brazil Brazil

12 6 8 62

122 89 98 152Countries Ranking BetterCountries Ranking Better

Than BrazilThan BrazilCountries Ranking WorseCountries Ranking Worse

Than BrazilThan Brazil59 Kazakhstan73 Mongolia76 Zambia104 Ethiopia107 Bangladesh126 Mozambique

145 Ukraine150 Uzbekistan157 Zimbabwe167 Afghanistan183 Chad

Source: World Bank

This financial This financial crisis is crisis is forcing State forcing State and Local and Local Agencies to Agencies to make some make some tough tough decisions.decisions.

If things If things continue for continue for much longer, much longer, there’s a real there’s a real risk that we risk that we may have to may have to lay off Jose.lay off Jose.

How Best To Invest In BrazilHow Best To Invest In Brazil1. Partner with experienced, established,

local company – green fields are dangerous.

2. Outsource capital needs – bring all the money with you.

3. Outsource operational management – transfer liability risk.

4. Avoid entanglements – don’t go near the jungle.