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Brazil Iowa Farms

Six Year Anniversary Of Brazil Iowa Farms 6

Brazil in World Agriculture/Main Crops Soybean Maize Sugar Cane Coffee Orange Beef Poultry Tobacco 2 nd 3 rd 1 st 2 nd Prodution Ranking Product 1 st 3 rd 1 st Exports

Portugal 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 Iowa in Brazil

Brazil Cotton Featured on JC Penney Towels

John Deere Tractors Made In Iowa For Export to Brazil

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

Our 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

3,4 29,8

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-West Railroad 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 2012 Caetite to Barreiras Completed by July 2013 Barreiras to Figueiropolis Still in planning stage

Barrieras LEM Roda Velha Iowa I Iowa III Iowa II Railroad BR20

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 1 st class economy including: 1.Cultural 2.Labor 3.Judicial 4.Capital 5.Civil / Political

Registering Property Getting Credit Paying Taxes Enforcing Contracts 5 th USA 127 th Brazil Source: World Bank

Registering Property Getting Credit Paying Taxes Enforcing Contracts 5 th USA 127 th Brazil Countries Ranking Better Than Brazil Than Brazil Countries Ranking Worse Than Brazil 59Kazakhstan 73Mongolia 76Zambia 104Ethiopia 107Bangladesh 126Mozambique Source: World Bank

Registering Property Getting Credit Paying Taxes Enforcing Contracts 5 th USA 127 th Brazil Countries Ranking Better Than Brazil Than Brazil Countries Ranking Worse Than Brazil 59Kazakhstan 73Mongolia 76Zambia 104Ethiopia 107Bangladesh 126Mozambique 145Ukraine 150Uzbekistan 157Zimbabwe 167Afghanistan 183Chad Source: World Bank

This financial crisis is forcing State and Local Agencies to make some tough decisions. If things continue for much longer, there’s a real risk that we may have to lay off Jose.

How Best To Invest In Brazil 1.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.