<p>We know that for the last couple years, Salinas investors have been buying up prime ag land in Peru. Have they now turned their attention to Argentina?<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">In the midst of Argentina's economic turmoil, protesting citizens are hitting the streets and <b>foreign investors see opportunity</b>. We have heard numerous rumors that Salinas power parties are taking trips to Argentina <b>looking for farmland to buy</b>.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Back in January, Argentina's government <b>devalued its own currency</b> in an attempt to jump start growth, according to CNN. The devaluation was meant to cheapen the country's exports, to make them more competitive on the global market. However, imports also became more expensive, driving up inflation. In fact, the value of the US dollar against the Argentine peso has increased significantly since January's devaluation.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/arg_page_032814.jpg" alt="cropped_Image_032714" />Argentina's President, Cristina Fernandez de Kirchner has added multiple subsidies since taking office, as a way to gain favor with voters, according to the Guardian Liberty Voice. However, after years of populist spending, the Argentine government has only $21 billion left in its reserves. As a result, the leadership had decided to slash subsidies by up to 80%. Gas, electricity, water utilities and other basic services have been heavily subsidized for more than a decade, but no longer.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><b>Food prices in Argentina have increased by 35%</b> over the past four months. Inflation is said to be moving so fast, that by the time shoppers bring items from the shelves to the checkout line, prices have increased. The situation looks ripe for foreign investors with outside capital to get a great deal.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Protesters are marching to demand pay increases to keep up with the high rate of inflation and afford the rising costs of living.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">There are some limitations on foreign land ownership. Foreigners own roughly 6% of rural land in Argentina, the equivalent of 37 million acres. Last year, the Argentine government passed a law which mandates that no more than 15% of the total land in a single subdivision can be owned by foreign interests, with no more than 30% of that being owned by a single person, according to MercoPress.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The economic and political instability are likely to lower investor confidence, but the current inflation has created favorable exchange rates for outside currencies. Last summer, land in the most fertile regions for crops and cattle in Argentina was worth <b>US$6,500 per acre</b>, according to InvestBA. This time last year, one US dollar would buy you about 5 Argentine pesos; today it will buy you 8 pesos - this is a 60% gain for foreign investors.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Will foreign investors buy up prime agricultural land at bargain prices?</p><hr class="legacyRuler"><hr class="invisible minimal-padding">
