Description of La Pampa
The objective of the following report is to show you the existing possibilities for rural real estate investment in the province of La Pampa, Argentina. Our province, together with the provinces of Santa Fe, Córdoba, Buenos Aires and Entre Ríos constitute the Pampean Plain or Humid Pampas, which is the most important agricultural area of Argentina.

La Pampa is strategically located in the center of Argentina and is slightly over 100 years old. The population is approximately 300,000 inhabitants, which accounts for 0.8% of the country’s total. The capital city is Santa Rosa, with 110,000 habitants. Other important cities are General Pico, Eduardo Castex, General Acha, Macachín, etc.

The province is communicated with the rest of the country by air routes and paved routes constituting a road network. From the capital, Santa Rosa, the distance to the major centers of the country are the following: Buenos Aires, 377mi; Rosario, 378mi; Córdoba, 380mi; Mendoza, 497mi; and Neuquén, 331mi.

The surface of La Pampa’s territory is approximately 35,430,000 acres, of which 34% (12,046,200 acres) are suitable for agriculture, due to the fertile soils, a moderate climate, and an annual rain reaching 600 to 800mm..
The remainder 66% (23,383,800 acres) is for mixed use or cattle raising, and it is mainly covered by natural forest, in which the autochthonous tree of La Pampa is found –the caldén (Prosopis caldenia),
(left photo).

It is mainly developed in the northeastern area. The principal crops are wheat, corn and sunflower.
Our province annually contributes with 2,500,000 tons of grains to the national production –cereals and oleaginous crops.
In the southwest corner, in Colonia 25 de Mayo, irrigated crops are developed due to the investments made by the provincial State in water infrastructure.

Cattle raising:
It is the major activity of the agricultural sector, and it is developed all over the provincial territory.
The exploited species by economic quantity are the Bovine, with 4,100,000 heads, Sheep, and Horses, with important exploitations of thoroughbred, saddle, and polo horses.

The economy of La Pampa is basically based on agricultural activity. This is shown by the fact that more than 50% of its Gross Geographical Product (GGP) comes from this sector.

World market demands position La Pampa in a strategic place, with a leading role in the Argentine agroindustrial exports. The geographical location enables the productive systems to be carried out in natural environments, free of chemical contamination or industrial waste, thus creating excellent competitiveness advantages for the province.

Land subdivision varies according to its productivity, which hinders the presence of smallholdings and the lack of profitability in rural exploitations. Real estate taxes are negligible as to their annual cost and one of the lowest in the country.

Hunting has had an important growth in the province, and became an attractive source of income.
The influx of hunters from all over the world confirms that Hunting Tourism is an important option for the pampean fields, together with rural tourism. It is considered one of the most interesting provinces for this sport in our country (the red deer national record trophy was hunted in La Pampa).

As the door of the Argentine Patagonia, the province has consolidated an integration process by constituting the links to form a definitive regional unit.
La Pampa possesses very significant features, from the agricultural activity, to beekeeping, milk and forest production, and the mining sector, from which we should mention the salt deposits (major exploitation in Argentina), and the oil activity, which in the last years had a considerable development.

La Pampa Free Trade Zone
It aims at consolidating the province and the whole region in a new challenge, which implies to introduce the province in the context of the global market, with the firm conviction of boosting regional growth, in terms of the existing industry.
Furthermore, Free Trade Zones also aim at boosting trade and export industrial activities, thus reducing the costs related to the activities carried out in them.
What are the perspectives for the real state sector for 2006?

According to the official statistics of the Notary Association (“Colegio de Escribanos”) of Buenos Aires, the amount of operations for January of this year registered an increase of 23.25% in comparison to last year’s same month. Additionally, the effective signed operations were 63% more than those of January 2005. The Notary Association states that a total of 4.272 were registered in January 2006 while in January 2005 the amount accounted to 3.466. The turnover negotiated in January 2006 was the highest amount within the last eight years. Besides that, the amount of money invested achieved also an historical level after the devaluation of 2002.

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The farm land, a protection of capital

The value of Argentinean farm land has grown this year by 20 % in comparison to last year. Even though the agricultural rent has fallen the Argen-tinean farm land constitutes a secure mechanism to preserve capital. This is observed by a trend of local and international investors who are demanding more and more hectares of land.
Five hundred dollars, that is the amount of the average increase in value of each productive hectare of Argentinean farm land this year.

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