Q4 2026 Cresud Sociedad Anonima Comercial Inmobiliaria Financiera y Agropecuaria Earnings Call
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Speaker #3: We are seeing some good effects in properties and the conditions overall were very good. Some regions and some in Brazil affected last year, but in this 2026, really the conditions are almost very good anywhere.
Speaker #3: From other side, we saw rising commodity prices recently, the last month and a half. We saw an increased price of soybeans and corn mainly, but not only.
Speaker #3: We are beginning to see some rebound in the prices of ethanol in Brazil too, and sugar. So some effects are coming to the sector these days.
Speaker #3: In the case of Argentina, we had very strong crop production— the highest in history in terms of size and yields. We will share more details with you a little later.
Speaker #3: The weather conditions were good almost in the whole country, and the main region that was reflecting that good condition was the north, where CRESUD has a lot of properties.
Speaker #3: So we are seeing a very productive year for CRESUD in Argentina mainly. Related to BrasilAgro, last year 2025 affected a lot the case of sugar cane and cotton, and in this balance sheet we are reflecting some of those effects. But talking about the campaign of 2026, the majority of the activities are in good shape.
Speaker #3: From grains to sugar cane for 2026, and cattle, so we are seeing a very good moment for the agriculture in the region. Related to livestock, we had this year record cattle prices in the whole world, and in the region we saw margins that we never see in our lives.
Speaker #3: We are going to share with you later, and production too. We saw this situation of lack of stock in the world, and there was a big rebound in prices, and we have the chance of having very good productivity yields and prices, so the highest margin in the history of CRESUD.
Speaker #3: Related to real estate, this was not a very active year. We have today something to talk about: the first sale of productive lots in Los Pozos, in Argentina.
Speaker #3: What does it mean? In the past few years, we were selling land reserves, not developed. This is the first case where we have the chance of selling 3,500 total area, from those 28,000 hectares are developed, and for $6.1 million.
Speaker #3: This is not recognized in this balance sheet. There is an execution of this deal in the future—I will explain deeper later—but this is almost all gain, because this is a farm that we bought a long time ago with a small capex, and it's not reflected now.
Speaker #3: The only farm that is reflected in this balance sheet is a small portion of the farm in Paraguay that BrasilAgro owns, called Moroti—a small sale that we are going to talk about later.
Speaker #3: But this sale of Los Pozos, which I will talk about in more detail later, is the first time we are selling developed areas and not land bank.
Speaker #3: Related to some capital market, we did a lot of transactions through the local capital market—256 million notes—and we paid last year 93 billion pesos, which was close to an 8% dividend yield.
Speaker #3: We can see here the evolution of our planted area, and how with the combination of the four countries, with the own and the list having Argentina the biggest, we achieved last year the biggest size.
Speaker #3: We grew year to year close to 5%. We expected and we keep growing developing listing and buying, and with the combination of the three having 50% of soybeans 28% of corn 9% of sugar cane, we saw an increase of planted area last year.
Speaker #3: And when we see what happened with that planted area, combined with the rebound in prices that we began to see from 2024 up to now, 2026, we began to see some increases in both cases, in the soybean price and in the corn price. The last year price increase in soybean was 24, in the case of corn it was 22.
Speaker #3: So that rebound, being very cheap prices if you compare the prices of soybeans and the corn, adjusted by inflation, we are still at very low prices comparing to the past.
Speaker #3: But this region, South America, with these prices, is very, very benefited, and let's see in next page what happened to our margins. In Argentina, we almost finished all.
Speaker #3: Today, this is numbers of June and July. Today, 100% of the two are finished, and in Bolivia, Brazil, and Paraguay, so the harvest is done.
Speaker #3: So our summer crop finished very recently, I would say the first days of September, and we have very favorable weather conditions, and that made a very record wheat production in Argentina, strong soybean and corn yields, so all the portfolio of grains in Argentina was very benefited.
Speaker #3: In the case of BrasilAgro, there were some things affecting the sugar cane last year—fires and some frost—but this campaign, I would say, that what is finished and what is going to be finished between the cotton and the sugar cane, are almost at budget. So, a good year for BrasilAgro too.
Speaker #3: Some of those is going to be reflected in the first semester of 2026. So today we are beginning to forecast El Niño, El Niño is something that will affect the region, the whole region and the whole world, and for Argentina reach the Niño means very good rain comparing to average, much more than average, so much more benefit to the humid pampas, more stable to the north, and to Brazil, much rain, more rain to Mato Grosso, and some doubts about the northern regions.
Speaker #3: So but this Niño is under the radar, everyone is speaking about that because it's bringing different conditions to climate, and for Argentina, it's very beneficial.
Speaker #3: When we talk about what we achieved, we grew close to 5% in surface, but when we see the crop production in total, between the four countries, we passed the one million tons.
Speaker #3: So that was part of our dreams, to surpass that million tons of own production, combining the four countries, mainly corn and soybeans, these are the two, and we see that when we see in the crop yields in the graph, we see that Argentina grew year to year 22% from 2.3 to 2.8 tons per hectare, Brazil grew 6%, Bolivia 63%, and Paraguay this year has a normal 2.4 tons per hectare, 155%.
Speaker #3: The whole region did 15% in soybeans, and in corn, Argentina, compared to last year, did 13% better; Brazil, 1% lower; Paraguay, 22% higher. So, the combination is 7% higher than last year's yields.
Speaker #3: So much more normal yields to the region. If you enter to the cattle business, that is another important mainly in Argentina, we can see the evolution of prices, there was the big rebound in the whole region, but Argentina coming from the lowest level in 2020, began to be at the highest level of prices, in the international steel price on the left, top left, and today with Uruguay, at the highest price, remembering that Argentina is one of the largest stocks of the world, Brazil 230 hertz, US close to 90, Argentina close to 50, Australia close to 30, and Uruguay and Paraguay to the 32nd.
Speaker #3: And we see that Argentina our stock evolution, we increase a little but we increase a lot in production last year we had 9.4 million kilograms, this year we had 10.64 million kilograms, increasing 3% of our hertz, but we double our margins in CRESUD.
Speaker #3: What this means, the combination of good prices, good yields, and a lot of using a lot of feedlot in the company level, we enter a lot of animals to the feedlot, making gains of 200, 300, or 400 dollars per head, made us a very profitable year in the cattle business.
Speaker #3: I would say more comparable in the past cattle was much smaller I would say was a 4 million to the 20 million, like a 2080, this year was a 16 to 26 comparing to the margins of agriculture, so it was like a 40-60, so it was a big rebound on the cattle business was this year.
Speaker #3: Having a little bigger stock, much more grain being given to the animals, so we had a very good result in the cattle business too.
Speaker #3: And talking about the other two legs of CRESUD, as you always remember, we have the production part, a combination of production of all crops and cattle, the real estate, and this balance sheet, we didn't reflect many gains, there is a small fraction of a small part of the Paraguayan farm, that I explained before, we sold only 372 of a range sale of bigger little bigger, that was going to be reflected next year, so there is only small gain of 900,000, 600,000 dollars gain with a 1.5 million sales, so small comparing to the past, but we are expecting a much bigger for next 26, 27, because there are a lot of closed things that are going to come to Brazil, and the Argentinian new situation, and the Los Pozos, I will take more details on what we did, is not reflected in balance sheet because before 30 of June, we only received 5 or 10%, we received recently other 10%, so 20% in total, but we are going to give possession of these farm in June of 28, and that time we are going to be receiving 60% of the price, at that time we're going to give possession to the, and we are going to reflect the sale, but this sale is a small fraction, this is 3.5 thousand hectares total, from those 2.8 productive areas, the rest is reserved, it's agreed in 6.1 million dollars to pay in installments, and it's a today this is not going to be reflected, but using the dollar of today and the price of today, would be a 13.3% internal rate of return for 34 years.
Speaker #3: And we move to next page, and here we see, we bought this farm in '95 for 10 dollars, we were developing for cattle and for grain for 250 or 650 dollars per hectare of CAPEX, doing roads, productive infrastructure, pastures, preparing for grain, and we sold for 2000 and 3000 dollars the cattle area and the crop area, and a neighbor who bought it, so confirming the theory of this land being very productive, very effective, and the neighbor bought this because he loved what CRESUD did in the past, and this is the first sale of productive lots at Los Pozos Farm.
Speaker #3: That is a big piece. Remember, this is a 240,000-acre farm that CRESUD owns, of which more than 60,000 are developed. So this reflects the gain that CRESUD has in its balance sheet. It's not reflecting the day we reflect, it's only the day we sell it.
Speaker #3: So this is we received 30% of the payment, and the 30 of June we are going to receive the other mini installments, up to 60, and there we give possession, and from that day we have few installments more.
Speaker #3: So we are very happy of this new, still not reflected, but we'll be reflecting on the future. We did a note on the balance sheet to explain this.
Speaker #3: And next page, talking about our commercial services performance, FIO, FIO, this is the coming by far the largest broker of the country, we are expecting for the 30 of September, where we close our balance sheet, to be at 8 or surpassing the 8 million tons, this represents close to 6% of market share of Argentina, the second broker of Argentina makes half of that, so really this is the one in the country doing this job, and here we don't only do selling grains, the 8 million are the main grains, soybean, corn, and wheat, but we do trading, we do capital, we do credits, we do advisory, we do food that is specialties, and we have beyond it, that it's our branch in Brazil, copying what FIO did in Argentina, and this year beyond it is achieving passing more than 400,000 tons, still a small comparing to Argentina, but the 30% or more growth comparing to last year, going to positive, and entering to a market that more than doubles Argentine size.
Speaker #3: Brazil, compared to Argentina, is more than double in these main crops. So, this company is growing, and probably copying the model of what we did in Argentina. This company had a very high net income, paid $5 million in dividends, and issued $28 million of notes in the capital market. So, these are the real estate, the operational, and the services, which are the main three legs.
Speaker #3: Having said that, I will now introduce Santi Donato, our Investor Relations Manager. Sorry, I have a chapter talking about the technology that I forgot, and here we are going to show why this year had such good yields, and a lot of things that CRESUD and BrasilAgro are advancing.
Speaker #3: We did some small examples of what the agriculture is spending time on, and what CRESUD and BrasilAgro are doing, and we divided it into six.
Speaker #3: The first one is precision agriculture. In here, what we are doing is changing to variable rate seeding and fertilization, adjusting inputs—that is, reducing cost for the whole region, making variable adjustments. In the past, the lots were, I would say, geographical; today, they are environments, meaning the best part of the lot is receiving the best quantity and quality of inputs, and you lower—when you reduce—the quality of the farm, the seeds and the fertilizer and the variable herbicides, to exactly use and avoid the cost they are not needing.
Speaker #3: So you are yielding maps, you are site-specific management, making that every field maximize its productivity and efficiency. The second subject—no, on this page, please—the second is connected operations. That was more in real-time data. What this means: we are putting a lot of field-specific information, we are putting some Brazilian technology in Brazil and Argentina. Meaning today, irrigation—the rain that comes from the sky—we can measure, not like in the past where it was done in just a few places. We are doing it every 500 or 1,000 hectares, and we have a lot of this information about wind, humidity, and rainfall through each farm. And with those, we are expanding connectivity, meaning that every farm is going to be really on time. Meaning that every machine that moves, you can track it when it's seeding, spraying, or harvesting—improving efficiency and control. So the expanding connectivity and climate condition monitoring is going to improve the efficiency of the farming industry, and in the future we are probably going to see a lot of automatization because of so many automated machines coming to the farm.
Speaker #3: The third, it's data integration, and digital management. This meaning the data we are going to combine all these sources, and we are going to using from the machinery, the weather, and the field operation, and SIP, because all is connected and Agrobit, that is our operation application, we are turning data into actionable insights, and monitoring crops, pest, and operation directly in the field, so this is much more efficiency, and we go into the 320 this year growing, and going to probably more to the 400,000 hectares, we are going to see part of this results because efficiency is coming to the industry.
Speaker #3: Next page please. The other three are generating long-term value in sustainable practice. What this means we are taking satellite imagery drones and remote sensing, with that we are monitoring crops and fields and cattle, the cattle is coming to Argentina to monitor each animal, in the identification and underperforming areas, and helping to put on those pastures or recovery of the land that is not very productive, and putting information to more efficient use of inputs and selective vegetation.
Speaker #3: What this means is you put the satellite image into your sprayer, and you open and close the sprayer related to where wheat is, so you can avoid a lot of your inputs, because now you are seeing with cameras or with images, and you avoid putting it on 100% of the lot, as would be uniform.
Speaker #3: And related to biodiversity, monitoring natural environments across our fields. Related to water, using much more weather data, satellite information, and the weather data that we bring with the machines that we bought, to optimize irrigation and to avoid putting water that is not needed. We are optimizing the day to irrigate and using this data to improve usage for long-term productivity.
Speaker #3: And related to sustainable production practices, Argentina because of lack of many things in the past, is doing the no-till farming and crop rotation, preserving the soil, cover crops, integrated pest and weed management, and in the efficient use of natural resources.
Speaker #3: What I meaning with all of these practices, the operational this is South America, in the size of South America, it's going to be running farms in big scale, as the small case of this past.
Speaker #3: So we are going to achieve the productivity that few could have in the past, because of so many tools coming to the center. Saying that, I will now introduce Santi Donato.
Speaker #2: Thank you, Alejandro. Moving to the next page, here we have our ESG program for progress for the year. Sustainability remains integrated into the way we operate our business. During the 2016 campaign, CRESUD continued expanding our TRS certifications in our farms in Argentina. Today, we have 12 certified farms, including 4 owned farms and 8 leased. We have approximately 39,000 tons of soybeans certified, which is 21% of our soybean production in Argentina, and 58,000 tons of corn, which accounts for 22% of our total corn production in the country.
Speaker #2: So it's really important. We have been growing in the last three or four years into this certification that is highly valued by the market and requires, in a five-year period, annual audits.
Speaker #2: On the social front, we kept investing, and working very closely with our communities, where our farms operate, this year we invested together with Fundación IRSA, that works since 1996, and this is a it's a milestone for the company, because we reached 30 years anniversary, for Fundación IRSA, we invested in different social initiatives, more than 2 million dollars, which is a very important number, and very high in historical historically, doing different type of actions, social actions, volunteers, initiatives, with more than 80 NGOs in the country, so and also we have at the school, our own school, Mario Julio Elstein, in this farm, Los Pozos, that was created by the company in 2005, as part of the development of this farm, and last year by the end of 2025, we also celebrated 20 years anniversary.
Speaker #2: So, we're really glad about the action at CRESUD. Regarding governance, this year we are also celebrating 90 years of corporate history. This company, CRESUD, was born in 1936. The current management took control in 1994, so last year we also celebrated 30 years of current management. And next year, we are celebrating the 30th anniversary of our NASDAQ listing, which was in 1997.
Speaker #2: CRESUD was the first agricultural company in Argentina to be listed both in Argentina, in BYMA, and in New York, in this case on NASDAQ. So, we are proud of that—proud of doing responsible production, to help and accompany our communities, and to build on transparency and responsibility.
Speaker #2: I will give the word now to Matías, our CFO, for the financial chapter.
Speaker #3: Thank you.
Speaker #2: For IRSA first, the investment of CRESUD in IRSA.
Speaker #3: Thank you, Santi. Good morning, everybody. So, if we move to page 14, our investment in IRSA—remember that we control 55% of IRSA—IRSA has very positive numbers during the year. It was a very active year in terms of developments and acquisitions. IRSA posted a net gain of 420.9 billion pesos during the year, with a record-high EBITDA in the rental segment, reaching almost $200 million. There was the acquisition of two shopping malls during the year—the Los Gaceos and Aloeste shopping malls—and also the launching of a new mall in La Plata, reaching 100% occupancy in the office portfolio, and also launching a new building in Polo Dot. There was very positive news about Ramblas del Plata, with the commercialization up to now of almost 20 lots, and the development progress is on time.
Speaker #3: You can see on the right side of the graph, the evolution of our adjusted EBITDA in the rental segment grew by 1.4%. Shopping malls were in line with the previous year. Despite a weaker consumption environment in Argentina, IRSA was able to maintain revenues at the same pace as inflation, and even surpass that in offices and hotels.
Speaker #2: If we move to the next page, I will try to explain the results of CRESUD. Unfortunately, our activities in dollar terms—basically all the agriculture—is in dollar terms, but when we measure this in pesos, adjusted by inflation, it generates a lot of distortions.
Speaker #2: As you can see in the graph, inflation during the year was higher than the devaluation. That means that when we adjust all the numbers in pesos terms, they appear as higher numbers, whereas our revenues are in dollars and are not reflecting the same pace.
Speaker #2: That will generate some results that I will explain on the next page. You can see that the net income for the year we are closing is $372.2 billion pesos, compared with $299.6 billion last year, attributable to our controlling interest, $177 billion against $128 billion. So, positive numbers. Here we have some important effects, first in line 6, the change in the fair value of the investment properties. These are more related to IRSA investment, and the properties of shopping malls, offices, and the Land Bank, that were positive during the year. Let's move to the next page, about the operating income of CRESUD. We can see here a drop, mainly attributable to the farmland sales first. As Alejandro mentioned, during last year we closed important transactions. This year, we are closing some transactions that are not reflected yet in the balance sheet, so we are not posting gains up to now. About the farming activity, here we have a decrease compared with the previous year, in grain. In fact, we see a loss during the year. If we separate this between Argentina and Brazil, Argentina is still positive, Brazil generated negative results, but this is basically related to what I mentioned, the adjustment by inflation. To give you an idea, if we generate $100 last year, $100 this year, this year we will show a 10% lower result than the previous year when we express this in pesos. Also, all the seeding activity, when we invest in the campaign, those numbers, when we adjust by inflation, appear to be much bigger than when we compare with the revenue, and this became negative. But when we see the numbers in dollar terms, as Alejandro mentioned, we are showing probably record high numbers in production, mainly in Argentina. In Brazil, we have some effects of the previous campaign that we are reflecting in this campaign, basically related to the cotton activity, and in sugarcane the same. We have the impact of some estimations that we did last year, and since we had some climate events and fire in one of the farms, that generated negative numbers. The cattle activity also, as Alejandro showed, was very positive when we measure in dollar terms. When we measure in pesos, part of those pesos are in the line of inflation adjustment that is in the financial line and not here, so for that reason, it seems much lower than, or lower than, the previous year.
Speaker #2: As I mentioned, the change in the fair value—that is basically related to IRSA—was very positive during the year. This is more related to the shopping mall appraisal; the land bank and offices, in dollar terms, remained stable.
Speaker #2: As I mentioned, in the net financial result we have some positive numbers, the opposite of what was just mentioned on the operating side. We have positive numbers by $63.8 billion pesos in the first line. The net effects result generated $145 billion pesos positive; this is basically to express our dollar-denominated debt in peso terms. Since the devaluation was lower than inflation, here we showed a gain. Also, in the inflation adjustment line we are showing positive numbers.
Speaker #2: About our debt, as Alejandro mentioned, there was active year in terms of issuances, in the local market, we issued 256 million dollars during the year, basically to extend the tenor of our debt, so the debt in terms in nominal terms remains stable here, we see some increase, but when we deduct from that our stock of grains, that as of June was 45 million dollars, that number is 328 million dollars, recently we just during the last two weeks ago, we issued a new bond, at with amortization in 2030, the idea was to redeem some notes that expire in September next year, with a coupon of 7.25, so we raise it, new debt at a rate of 6%, so we reduce the rate and also extend the tenor, and also eliminate some refinancing risk in the middle of the electionary year in Argentina, that bond expired in September, so that was the rationale to tap the market now and not to wait.
Speaker #2: With this, we finish the formal presentation. Now, we open the line for the Q&A session.
Speaker #1: We will now open the Q&A session. If you have a question, you can ask through the chat. We are going to receive the questions, and we will answer them in the order we receive them.
Speaker #1: So first, questions related to the next campaign: if we can give some guidance on surface for the next campaign and on crop results, given the recent recovery in commodity prices.
Speaker #1: So, a little bit of color on the 2028 campaign.
Speaker #3: Thank you for the call. For the question, we are expanding a little our portfolio of agriculture for next year. I would say 2-3% more crop area, in a combination of more leasing and some development that came, and so a combination of all, we are talking about 2-3% increase in size for the total surface of agriculture. We were very lucky to be very strict at the moment of renting, so the prices were not at today's price, and today with this, we have a very good benefit, because we did it at much lower prices than today. So for the next campaign, we increased the size, and we did it at very low prices of commodities compared to today, so we expect much better margins because of the combination. And some of the weather, we are not sure, but in Argentina, humid pampa, we expect that to affect mainly soybean and corn, so let's see. The new campaign is new, really very beginning. The only crop that is planting is the wheat, that we did like 17,000 hectares. The rest is going to cow for summer, and we are optimistic in the growth and the prices.
Speaker #3: And in the inputs, we were very opportunistic in the purchasing moments, and in the moments of a little peace, we bought almost all the fertilizers for the group. So we were able to, and we have today, 100% of fertilizers being purchased.
Speaker #1: Thank you, Alejandro. One more question I have here, related to real estate: are you seeing opportunities to buy new farms in the region, and particularly in Argentina, as you expect to sell more farms in the upcoming quarters?
Speaker #3: Yes, the company always tries to rotate its portfolio. We think it doesn't deserve to have a land forever, so we expect the two. In Argentina, the liquidity is coming back, and the example of Los Pozos is a good example. Argentina changed its macro, changed its mood related to agriculture—it's one of the benefited sectors of Argentina—so there's much more interest in the business, in Argentina and from foreigners too.
Speaker #3: In the case of so we're going to see some rotation, we have some farms for many years, and we'd like to keep selling and buying again, we are trying to buy other new another new farms in Argentina, and mainly in Brazil, in Brazil they are the two, we are close to close many transactions in areas, in Brazil happened something interesting, some areas are very affected, as Mato Grosso is very affected, that was not very good in results, but some others like west of Bahia it's very benefited, and we have a lot of clients, so yes, we would like to be selling the mature part in Brazil too, and to be buying opportunistic and forced sales that they are appearing in Brazil.
Speaker #3: So yes, to keep, and I hope next year the real estate portfolio will rotate much more than this year — '25, '26.
Speaker #1: Thank you. Well, let's see if we have any additional questions. There is one focusing just a little further on your fertilizer purchases: For how long are you locked in from a price standpoint, and roughly when would you be exposed to spot prices again?
Speaker #1: And are your fertilizer needs for the next campaign covered across your portfolio, or only in Argentina? This is a question from PTG Pactual.
Speaker #3: The first part I didn't understand—could you repeat the first part?
Speaker #1: Focusing a little further on your fertilizer purchases, for how long are you locked in from a price standpoint, and roughly when would you be exposed to spot prices again?
Speaker #3: Well, Argentina is done. Argentina is 100% purchased, so done. Brazil is big majority—not exactly sure—but I think big majority of Brazil was purchased. I think they did have some needs, and so I cannot confirm that. I would have to go to Brazil Agro.
Speaker #1: Good. And the second is, are your fertilizer needs for the next campaign covered across your portfolio? Only in Argentina, that was answered. Okay, that's perfect.
Speaker #1: Gordon, just in case there is a pending answer, let us know. And I have one more here: What policy developments do you foresee affecting your business over the next years? Are there more opportunities for Argentina reforms to help your business?
Speaker #3: Argentina needs to do a lot of changes, it's not done, they got a good trend, decreasing the taxes on exports, disappearing the gaps on the dollars, some international companies coming because of the new environment, still need to do things on licenses, patents, some a lot of technology needs to come to Argentina, and a lot of tax efficiencies for farmers needs to come, so a lot of steel, building on farmers, the law on the foreigners buying land, today they can buy, but with restriction of size, in each province different, so yes, a lot of measures needs to be achieved and addressed in the agriculture sector in Argentina, the direction is very good, but still I would say they did a portion of that, but still taxes on soybean are like 23 today, still from 23 to 0 is $100 per ton that we are not receiving, so yes, still a lot of things to be achieved.
Speaker #1: And a question on the financial front: CRESUD's financial position continues to improve. What are your plans in terms of capital returns?
Speaker #2: Well, we have to submit the dividend proposal to our shareholders' meeting during the next week, so we will announce the proposal soon. As you know, during the last years, CRESUD has been paying dividends steadily, so we will see next week. I can't anticipate what we're going to propose, but it will be public next week.
Speaker #1: There's one more—I think it's the last one—also from BTG. With record grain production in Argentina, and soybean and corn prices up meaningfully, how sustainable do you see the current improvement in agricultural margins?
Speaker #1: Is there still appetite for margins in Argentina, given the current prices and the record grain production last year?
Speaker #3: Yes, for sure, Argentina needs to address, I said the taxes on exports, some of them disappeared, but still some of them exist, soybean is the worst, second is corn, third is wheat, some in the steers, in the cattle business, so taxes on exports is one, that it's going to increase the margin for farmers when they disappear, they take big portion, it comes from revenue, not from gains, the second increasing on yields will come with the new patents, it's going to improve the technology, if you compare Argentina to Brazil, the lot of those best inventions for example the case of seeds coming from the big companies like the buyers or they don't they don't Marios, they were increasing much higher yields, the soybean, than in Argentina, and the fertilization too, Argentina it's now increasing a lot, its fertilization, its production of fertilization of fertilizers in Argentina, urea is under big transformation in the country, what this means is going to be a country that in the past was importing to a country that it's going to be exporting urea, nitrogens for the land, yes, Argentina with the new rules, it's going to expand fertilization, use of technology, seeds, machinery, the machinery entrance to a country is much better today, coming from all the origins, and automatization, connectivity, all of these are margins to the farmer, plus the increasing of the price of the land, the land of Argentina in always in general was 20 to 33 times the price of the land, so every time you increase the margin, you are increasing and you are connecting again the price of the land of Argentina, that was always was connected to the corn belt of the US, but in 12 in 2012, after many bad measures of the country, began to be disconnected, so the benefits with logistic, with the if they do the, for example, the port, what they need to do is to try to avoid the load of the port, they do in half, in Rosario, and the rest in Villa Blanca, and this is because of the not well taking the arena, the sand of the river, so not taking that, they cannot load whole boat, and talking about the trains, trains coming to Argentina, reducing the cost of transportation, everyone speaks about the efficiency of Argentina, Argentina is not so efficient, it's very close to the ports, it's very it's very very good in the distance, US drives a lot through the rivers and boats and trains, in Argentina, it's still a lot in trucks, and this it need to be changed to much more efficient through rivers and through trucks efficient, yes, I think margins, if this country comes to the normalization, will improve, and probably the landing here will double the price, and the efficiency will be comparable of the efficiencies of US and Brazil.
Speaker #1: Well, there are no more questions, so we conclude the Q&A session. Just turning back the word for your closing remarks, Alejandro, closing this year.
Speaker #3: I'm very optimistic. I think we are achieving a much bigger size in production, and it's very effective. I think the lesson of Argentina's scarcity is helping us—our margins, all the business, and it's spread through the four countries, and in the growth we are doing—so very, very quiet and very well-thought growth. And El Niño will affect, for sure, next campaign, expanding the service business through the region and the real estate. We hope to rotate again, and our "here's a" is working very good. It's really spending very good time in real estate, that CRESUD receives as benefit too. So, the combination of all—real assets in South America, well discounting prices—so we are very optimistic for next year.
Speaker #3: Thank you very much, and have a very good day.
Speaker #1: Bye bye.
Speaker #2: Bye.
