26 acre Inca Mountain Ecuador coffee finca for sale $175,000, 1 ¾ hour drive from Cotacachi, 1 hour west of Ibarra on a great highway.
Ecuador coffee farm entrance.
A July 24, 2012 New York Times article “Fed Leaning Closer to New Stimulus if No Growth Is Seen” by Binyamin Appelbaum says: A growing number of Federal Reserve officials have concluded that the central bank needs to expand its stimulus campaign unless the nation’s economy soon shows signs of improvement, including job growth.
In other words the Fed is thinking of printing more money.
Here is what Warren Buffet thinks of this as discussed in his philosophy of investing at his latest shareholders meeting. He sees holdings as fitting into three types. First, investments that are denominated in a given currency (interest-rate products): money-market funds, bonds, mortgages, bank deposits, and other instruments. He calls these some of the most dangerous assets. “Their beta may be zero, but their risk is huge.” As the Fed continues to print money, the dollar continues to lose value. Thus the high risk of holding dollar-denominated assets.
“Even in the U.S., where the wish for a stable currency is strong, the dollar has fallen a staggering 86% in value since 1965 . . . For tax-paying investors like you and me, the picture has been far worse. During the same 47-year period, continuous rolling of U.S. Treasury bills produced 5.7% annually. That sounds satisfactory. But if an individual investor paid personal income taxes at a rate averaging 25%, this 5.7% return would have yielded nothing in the way of real income. This investor’s visible income tax would have stripped him of 1.4 points of the stated yield, and the invisible inflation tax would have devoured the remaining 4.3 points. It’s noteworthy that the implicit inflation “tax” was more than triple the explicit income tax that our investor probably thought of as his main burden. “In God We Trust” may be imprinted on our currency, but the hand that activates our government’s printing press has been all too human.”
Buffets third type of investment are the ones that produce products or services such as farms.
That is why I found this paid ad for an Ecuador coffee farm of great interest… producing an almost 25% return on investment (if one works the farm).
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. They now have another investment opportunity and are selling this Ecuador coffee finca to raise cash.
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.
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.
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.
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.
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.
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).
Inca Mountain Coffee Farm is about 1 1/2 hours from Ibarra, a large city in northern Ecuador. The farm is fully operational with owner and worker houses, pulping machines and 2 full time experienced employees. There is continuous mountain water available and an irrigation system in place for the dry season (but rarely used).
Well defined rainy and dry seasons, perfect altitude, patio drying, ideal differences in day and night time temperature, and selective hand picking has culminated in Inca Mountain Coffee beans with an intense aroma, sparkling acidity and balanced body.
Covered drying patio.
In the yearly Golden Cup competition, coffee from this farm was a finalist in 2011. An additional bonus is that the nearby canton police station provides added security for this secluded mountain community of San Geronimo. Extremely low expenses highlight this verdant coffee farm that will provide a consistent yearly income.
Owner was selling to fund new investment opportunity and the farm is no longer available.
Seasonal worker harvesting coffee.
Property Registration: Canton: Ibarra, Province: Imbaburra
Description of Property: Rural sector San Geronimo, parochial – La Carolina, Canton – Ibarra, province – Inbaburra (about 1 hour west of Ibarra on paved highway)
11 hectares/22.5 acres (on paper, but closer to 13 hectares in actuality)
Boundaries: San Geronimo River and public road to Buenos Aires
Altitude: 1,200-1,260 meters (3,600-3,780 feet).
Weather: average daytime temperature: 24C , 79F, abundant rain with summer dry season. Irrigation rarely needed. Inclined property drains well. Steep typography on either side of farm provides partial shade for plants.
Coffee trees: Coffea Arabica, varietals: primarily caturra, some Geisha (1 hectare)
Grade: SHG, SHB
Approximately 50,000 coffee trees, most about 6 years old, 3rd year of harvest
Harvest seasons: Primary – Feb-May, Secondary Oct-Nov
Yields: 40-50 quintales of green coffee beans (45 kilos/100 lbs) per hectare, 400-500 quintales per harvest
Coffee trees are grown partially shaded and are interspersed with a variety of fruit trees (which are a secondary source of revenue).
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)
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.
End of advertisement
We DO NOT investigate properties when they are advertised so be sure to complete your due diligence. Always use an independent Ecuador attorney who represents you (not the seller) when you buy real estate in Ecuador. We also recommend that you rent, become familiar with Ecuador before you buy.