Investments in Teak


When thinking about investing in timber, one way to ease pressure on rain forests is to invest in plantations such as teak plantations in Ecuador.

Ecuador teak

The simple fundamentals have always appealed. Teak is in growing demand.

There is diminishing supply, plus a drastic need to stop logging rain forests where old teaks stand. The answer is teak plantations. Ecuador makes a great place to plant with 365 days a year of direct equatorial sunlight, lots of rain and close to the U.S.!

Finding good people and a project are the hard parts. I originally introduced because I have known Joe Montgomery and Paul Palacios (both previously of Banco del Pacifico) for over a decade. They started a project growing teak in Ecuador.

The potential is around 20% per annum on a compounded basis for twenty years.

That is a lot, about 40 times investment or about $400,000 return on a $10,000 investment.

This however is a very long term investment. The first income does not come until thinning takes place.   A return on investment is expected in about ten years, but the big profits are in years 18-through 20 in the first major logging.”

They began their first planting in 1997.

You can see how they have done at their website linked below.

Learn more about having an Ecuador farm.

Ecuador Agricultural Real Estate Tour

Join an Ecuador farm real estate tour.

You can set the date for your own tour.

This for those who would like to look at Ecuador farm property.

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Imagine having a multi dimensional opportunity like this.

There are opportunities to own an Ecuador farm with a combination of beach front and agriculture.

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Delegates visiting Ecuador farm on beachfront with multi dimensional opportunity.

See three case studies of Ecuador farms… large, medium and small that offer a sustainable, healthy lifestyle and income protected from inflation.

Merri and I have always focused on turning our passions into profit and we all love living on farm land!

Learn to tap root values and create multi dimensional opportunity on a farm is part of the new way of creating a better lifestyle.

Merri and I live on a farm in North Carolina… a orange grove in Florida and  our first Ecuador property purchased many years ago was also agricultural land… over 900 acres… formerly in sugar cane, citrus, pineapples and avocados… the top soil deep and rich.

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Here is a photo of Merri feeding one of our horses.  We still have this hacienda, Rosaspamba, (the place of the roses).

Plus we have added more agricultural land to our portfolio… and are looking to add more.  We love earning from our crops as well as writing seminars and tours.

You can live a wonderful pure lifestyle like this on an Ecuador farm.

Economic history since before WWI suggests that we’ll see the final crunch of this 15 year bear in 2011 and perhaps 2012.  Then the light at the end of the tunnel will appear… slowly at first but picking up a head of steam aiming for the next bubble of something like 2030.

Already the price of farm land globally has been soaring and often in North America is out of reach for individuals.

This is why in the last several years I have been writing about and adding agricultural real estate to one’s portfolio.

There are few places with as much agricultural potential and diversity as Ecuador. It is not surprising that many readers want to own and live on Ecuador farmland.

Ecuador agriculture can offer a better lifestyle and opportunity at an affordable price. 

Sometimes we forget the importance of life’s basics…such as food.  Until those basics cost more than we can afford.

Why Ecuador agriculture is special is explained in a Wall Street Journal article that began: “Prices of farm goods are climbing – in part because of demand for crop-based fuels – pushing up food prices around the world and creating a new source of inflationary pressure. The rise in food prices is already causing distress among consumers in some parts of the world — especially relatively poor nations like India and China. If the trend gathers momentum, it could contribute to slower global growth by forcing consumers to spend less on other items or spurring central banks to fight inflation by raising interest rates.”

This is one of the wonderful benefits of Ecuador agriculture, the extreme supply of excellent but low cost food.

Ecuador is a Garden of Eden and here is a fact you probably did not know. The inhabitants of this region developed more than half the agricultural products that the world eats today. Among these are more than many varieties of corn and potato. These foods also include squash, beans, peppers, peanuts, popcorn, yucca and quinoa.

They even learned to use freezing night temperatures and warm days to freeze dry potatoes and create potato flour.

At the market, three blocks from our hotel where we shop.  Open air restaurants in the front of the market offer excellent meals, vegetarian, or chicken, steak, fish or pork for about $1.

There are numbers of  fresh picked vegetables offered by happy friendly people.

And every type of fruit you can imagine, from pineapple to coconut, papaya, mango, apples, pears, bananas, berries and numerous other tropical fruits all at bargains prices by Western standards and ripe all year round.

Many exotic spices at a 1/20th the cost in the US or Canada. This makes life especially wonderful and inexpensive.

This is why I am pleased that Jean Marie Butterlin is conducting Ecuador real estate tours.  He wrote:  We live now as well in Bahia Ecuador on $2,000 a month as we did in Europe on $10,000 a month.

When you are planning to retire and live the good life, you should look at both parts of the equation, expenses and what you can earn.I have been able to lower my expenses considerably by living in Bahia.  We live in front of the Malecon enjoying the sun 320 days per year.

But the key to retirement is really in the INCOME part of the equation.   How can you generate income without working too hard?

The answer is to have an “outside the box”  plan.  If you do what everybody else does, chances are you’ll earn what everyone else does.

A lot of younger clients on our real estate tours ask  “How can  I generate a little income in Ecuador”?  They say they would move down immediately if they could. This started me thinking  about how to show a few select clients a chance to be part of that world of retirees in Ecuador who work only at what they like.

I have put together a special plan for those seeking to move and earn in Ecuador now!

Here is the plan and here are the facts:

* Every economist is currently saying that agriculture will be the next place to invest because :

  • God is not making more arable land.
  • The world is running out of food.  China has been buying and leasing arable land all over Africa and in South America for example.  A lot of the smart money is going into arable all over the continent.

* Ecuador has some of the cheapest yet best agricultural land in all of South America.  The climate is best for growing as well with 365 days a year of direct sunlight.  In many parts of Ecuador, farmers can get 3 and even 4 harvests per year, depending on the water available on the property.

* However, most Ecuadorian farmers have not yet learned how to produce and manage a farm. They are lacking higher education and management skills as well as equipment.  Some Ecuador farmers still plow with oxen.

*  Many Ecuadorian farmers do not know how to sell and do not treat the farm as a real business.

There is a great opportunity that lies in this combination of cheap, arable land, the geographical place of Ecuador on the equator and lack of good agronomical skills.

This is a tour for those who want to learn about Ecuador farms. and have $50,000 or more to invest in their home and income opportunity.

This tour will be conducted over three long, jam packed days to provide you a low cost efficient way to inspect Ecuador agricultural property that is legitimately for sale at a reasonable price.

Day 1 - 9 am to 6 pm: Detailed presentations by agri engineers and specialists of several type of agri businesses. These presentations  include costs, types of soils for each type of crop, risk analysis, potential profits, timing, where to find the buyers of crops,  introduction to buyers  looking for specific crops.

On the tour we look “outside the box” at crops that can for example produce “biofuel”. We’ll look at land where one company in Manta will buy every available crop at market price.   We know the owners of that company and you will be introduced to them.

Day 2: Visits farms for sale.  Here is one farm we will inspect.  This agri property has 203 hectares (507 acres) divided into:

28 hectares (70 cares) of balsa trees.  In 5 years these will fetch $30,000 a hectare.

30 hectares (75 acres) of African palm trees in production (the nuts fetch $250 per ton).

Ecuador-agricultural-land

- 140 hectares (350 acres) of pasture sufficient for 200 head of cattle or other crops that can produce an excellent return.

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- 3 small

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and one large river along the property with water availability.

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- Close to the main road

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- $6600/hectare ($2,640 an acre) asking including a small casita for caretakers.

Day 3: The tour inspects residential real estate… condos and houses for close to farms in nearby coastal cities including Bahia.

We will have inspected and investigated all properties prior paying special attention to three special issues:

* water on site
* access roads
* good port close

We will only show land that has water in Manabi province near Manta the second largest port in Ecuador.

We will have investigated electricity, pricing and title plus will have speakers during breakfast and dinners who will discuss these  issues and the legal matters pertaining to agri businesses in Ecuador.

These experts will be available for consulting during the tour and later… covering technical matters on which crops are best suited for each soil and what times of the year are best for planting and harvest.  The tour pays special attention to reviewing the marketing aspect of each crop and where to find buyers.

We use our contacts with local people were born in the area… who know the land owners… who know what the “market” price should be and we do not show farmland where the seller is asking an unrealistic price or if there are any doubts about ownership or clear title.

We also provide administration, accounting and legal consultants who will answer questions about owning and running a company in Ecuador, a civil code country and very different from the US and Canada which run on common law.

You can set the date for your own tour.

The Ecuador farm tour fee is $799 for single or  $999 couple.

For efficiency and logistics, this tour is strictly limited to 15 people… 4 persons per four wheel drive vehicle.

Ecuador has many Agricultural Advantages and we have been recommending the idea of investing in Ecuador agriculture for years.

This creates opportunity as well.

Ecuador’s geographical location gives it a distinct advantage in agricultural production. Its exports include asparagus, bananas, broccoli, cocoa, coffee, flowers, hearts of palm, lentils, papaya, passion fruit, pineapple, plantain, mango, red beans, and tomatoes. Ecuador has mainly an agricultural economy, though oil is its largest source of revenue, and industry has expanded. Agriculture employs 32 percent of the workforce. 6.4 million acres is used in agriculture. Permanent pasture covers 17 percent of the total area and forests nearly 43 percent. In the highlands subsistence agriculture and the production of staples for the urban areas are predominant (corn, wheat, barley, potatoes, pulses, and various vegetables). In the coastal lowlands tropical crops are grown to export. Ecuador is the largest exporter of bananas in the world and among the largest exporters of shrimp and roses.

Merri and I have been recommending Ecuador for over 15 years…we have been recommending investing in agricultural property for even longer. Agricultural property in Ecuador makes excellent sense for those who like both ideas.  We are very pleased that Jean Marie has created this excellent tour.  We are happy to share this opportunity with you.

Gary

Included in the price is the tour… the guides and are all local transportation.  Airfare to Ecuador… domestic airfare from Quito to Manta, lodging and meals are NOT included.

You can set the date for your own tour.

The Ecuador farm tour fee is $799 for single or  $999 couple.

For efficiency and logistics this tour is strictly limited to 15 people… 4 persons per four wheel drive vehicle.

Who Will Benefit From This Tour

Attendees on this tour will range from those who want their own sustainable farm or a full agricultural business.

Three Ecuador Farm Case Studies

Here are three case studies for three Ecuador farms… small… medium and large. (These farms are no longer on the market).

Case Study #1:  A good case study for those looking for a way of life and an income supplement is this  six acre organic tomato farm offered at $85,000 that delegates on on a real estate tour visited.   This shows a perfect little Ecuador retirement operation, so where should we start?

I think it is with the guinea pigs…

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The farm has many of them in these cages.

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Clover on the farm feeds them.  Their manure helps organically fertilize the corn.

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The corn husks are mixed with manure to be used as fertilizer and the corn feeds the…

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pigeons…

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chickens and…

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pigs.

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All of these animals create more organic fertilizer that this farmer uses to grow tomatoes.

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Here is the Ecuador organic farmer with our driver Jorge, Alberto Verdezoto and Peggy Carper.

Tomatoes grow quickly here it seems.  These newly planted organic tomatoes will be ready in three weeks. I find this hard to believe but this is what the farmer said.  Though my Spanish has been known to miss on occasion.

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These will look like…

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this and…

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provide

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income that…

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would provide a nice retirement income… $25,000 a year we are told.

Other benefits include farm fresh eggs.

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Trout are in the ponds next to the pigeon coops.

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You can set the date for your own tour.

The Ecuador farm tour  fee is $799 for single or  $999 couple.

Case Study #2:   This second case study shows a Coffee finca offered for $175,000 for someone who wishes to farm for a good income.

26 acre Inca Mountain Ecuador coffee finca  1 ¾ hour drive from Cotacachi.

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Ecuador coffee farm entrance.

The original owner spent two years searching for the perfect location to duplicate the exact terrain, altitude and growing conditions of the most successful coffee farms of Boquete, Panama and Columbia.

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Terrain and coffee plants.

After walking with an altimeter in hand and talking to reclusive indigenous farmers, this region was discovered with all the perfect conditions to cultivate exceptional Arabica coffee trees.

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Owners house with roof terrace.

This is a micro climate, blessed with abundant rainfall, in clean mountain air, bounded by a clear trout filled year around rushing river, protected from extremes of wind and large temperature fluctuations,  perfect for growing coffee.

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Open drying patio.

It has 11 hectares planted (manageable for a single owner), with approximately 50,000 Arabica, varietal Caturra (self pollinating) coffee trees which  are perfectly distributed over a hillside interspersed with a variety of fruit trees for shade.

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Oranges grown to protect coffee trees.

No problem selling this crop for top dollar due to its proven high quality.  The coffee sales last year grossed $70,000 so after $25,000 expenses, $45,000 was the net income.

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Coffee beans.

As well, an experimental 1 hectare of Geisha varietal.  Geisha is considered to be one of the finest coffees in the world and garnered the highest auction record in coffee history, fetching $170 per pound in 2010.  The first harvest of this varietal is expected in about 2 years.

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Coffee plants grown in greenhouse on farm.

This Andean  location provides an ideal environment for coffee growing without damaging the unique habitat of many species of birds.   Arabica coffee trees are a major source of oxygen production.  Each hectare produces 86 pounds of oxygen per day which is 50% of rain forest habitat.  Ecuador is a biologically diverse country with an abundance of birds, amphibians, reptiles and butterflies.  Inca Mountain Coffee Farm is ecologically in harmony with its environment.

The Arabica coffee trees are 6 years old, providing remarkable yields, allowing for continuous flowering and two annual harvests (major harvest Feb-Jun and minor harvest Oct-Nov).

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Covered drying patio.

In the yearly Golden Cup competition, coffee from this farm was a finalist in 2011.

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Seasonal worker harvesting coffee.

Owner’s house – 900 sq/ft, 2 bed, 1 bath, with lots of marble, built in cabinets in both bedrooms and upper roof porch

Caretaker’s house – divided into multiple rooms with bathroom

Land line phone installed and operational

110 and 220 volt electric lines

Equipment:  2 coffee bean pulpers with 2 water tanks, 2 weed whackers, misc. tools, scale for weighing coffee bags

1 large uncovered drying patio and 1 covered drying patio

2 full time highly experienced workers – monthly payroll is $650 (plus more during harvest for seasonal workers)

Average yearly expenses:  $25,000 (all payroll, fertilizer, harvesting expenses, utilities, taxes)

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This clean mountain river that runs year around with trout.  Also, access to mountain water for farm irrigation, though it is rarely needed.

Farm is fenced along road.

You can set the date for your own tour.

The Ecuador farm tour fee is $799 for single or  $999 couple.

Case Study #3:   This third case study shows an American who has created a   large Ecuador agri operation. This is the farming operation set up by Young Living Essential oils.

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After creating a marketing system for the oils and farming in the USA, Gary and his wife…

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moved to Ecuador… began a large farming operation as well as…

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there own processing and a health spa.

Ecuador is a perfect place for many types of agriculture… large and small.  Find your farm in the safe and efficient way on an Ecuador Agricultural Tour.

For efficiency and logistics this tour is strictly limited to 15 people… 4 persons per four wheel drive vehicle.

You can set the date for your own tour.

The Ecuador farm tour fee is $799 for single or  $999 couple.

 

The website www.teakecuadorian.com has detailed information about Ecuador teak plantations.

 



Free Report on Living in Ecuador

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