Uruguay agriculture equipment
Uruguay’s October 2020 investment law is a primary drivers for the increased investment in agricultural equipment.
Uruguay’s 2021 agriculture related investment projects increased by $140 million, or 213%, from the prior year. Additionally, the Agriculture Machinery Investment Index increased 54% over the same period and reaching its highest level in seven years. Within the index tractors increased 71%, seeder machinery increased 64%, and harvest machinery increased 29%.
Uruguay’s October 2020 investment law is one of the primary drivers for the increased investment in agricultural equipment. This investment stimulus program grants an annual Income Tax on Economic Activities (IRAE) exemption of up to 90%. Additional factors influencing the increased investment can be attributed to relatively high prices commodities prices, increased volumes of exported commodities, and increased acreage of planted crops.
Agricultural investment priorities in Uruguay include irrigation equipment, agricultural machinery, grain production supplies (ex. agrochemicals), storage silos, livestock water management, and the incorporation of new agribusiness-related technologies.
Opportunities exist for U.S. agricultural machinery exporters. If you would like more information, please contact the U.S. Commercial Service in Uruguay at Office.Montevideo@trade.gov.