Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY): PESTLE Analysis [Nov-2025 Updated]

If you hold Cresud (CRESY), you are betting on a complex, high-stakes game where agribusiness meets volatile Argentine macroeconomics. The 2025 outlook is defined by political stability and managing inflation that could exceed 150%, which directly impacts the value and operational costs of their massive 1.1 million hectares of land. This PESTLE analysis cuts through the noise, showing you exactly how government export taxes, the push for precision agriculture, and shifting global food demands will determine CRESY's near-term trajectory.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) - PESTLE Analysis: Political factors

Political stability following the 2023-2024 transition remains the top risk

You're looking at Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) after the Argentine political earthquake, and the core issue is whether the reform mandate holds. President Javier Milei's administration, following the 2023-2024 transition, has delivered some impressive macroeconomic wins, but the political foundation is still shaky. For instance, the government achieved its first fiscal surplus in 14 years, reaching 1.8% of GDP in 2024, and monthly inflation plummeted to 2.1% by September 2025 from its peak. That's a massive stabilization signal.

But here's the quick math on the risk: the country remains deeply polarized. The President's party, La Libertad Avanza, secured a stronger mandate in the October 2025 midterm elections, doubling its congressional representation and taking 41% of the vote, but still lacks a working majority. This legislative deadlock makes deeper structural reforms-like labor and tax code changes-defintely a struggle. The market reflects this tension, with Argentina's country risk rising from 800 to nearly 1,400 basis points in late 2025 following some provincial election setbacks, signaling investor anxiety over the pace of change.

High volatility in Argentine export taxes on agricultural products

The Argentine government's policy on export taxes (retenciones) is a direct, volatile input to CRESY's agricultural segment profitability. The administration is using these taxes as a flexible tool to manage foreign currency reserves, which creates uncertainty for farm planning. While the long-term goal is lower taxes, the path is anything but linear. This is a classic Argentine policy risk.

In July 2025, the government enacted a permanent reduction in duties for key products, a major relief for the sector, but the rates remain high compared to regional peers. Then, in September 2025, they temporarily suspended all export taxes on grains and by-products until October 31, 2025, to accelerate dollar inflow before the elections. This temporary zeroing is a short-term cash boost, but the underlying, permanent structure is what matters for long-term project viability. The table below shows the key permanent rates CRESY's agricultural business must factor into its 2025 fiscal year projections:

The permanent cut to 26% for soybeans from 33% is a positive structural change, but the constant threat of a reversal or a new temporary measure keeps volatility high.

Ongoing risk of capital controls and currency restrictions impacting repatriation

For a company like CRESY, which is a US-listed holding company with operations across Argentina, Brazil, and Israel, the ability to move capital freely is paramount. The good news is that the risk has significantly decreased in 2025. As of April 14, 2025, the government lifted most of the strict currency and capital controls, known as the 'cepo cambiario'.

This is a game-changer for CRESY's financial planning and shareholder value. The key takeaway for you is the new policy: foreign firms are now legally permitted to repatriate profits generated from the 2025 fiscal year onward. However, the risk isn't fully gone. Trapped earnings from prior years remain restricted, and any future political instability could see the re-imposition of controls, a common cycle in Argentina's economic history. The government's move, supported by a $20 billion agreement with the International Monetary Fund (IMF), is a strong signal, but the country's low foreign reserves still make the currency regime vulnerable.

• Profit repatriation is now permitted for 2025 earnings.
• Trapped earnings from pre-2025 remain restricted.
• The policy shift is backed by a $20 billion IMF agreement.

Government policy shifts on land use and foreign ownership in Mercosur

CRESY is a major landowner, so the policy on foreign ownership of rural land directly impacts its asset valuation and potential for strategic sales. The policy shift here is unequivocally positive for CRESY's real estate and land bank segment.

In December 2023, the Milei administration repealed the restrictive Rural Land Law (Law No. 26,737 of 2011) via Decree No. 70/2023. This law had previously:

• Capped foreign ownership of rural land at 15% nationwide.
• Limited individual foreign landholdings to 1,000 hectares in core agricultural zones.

The repeal effectively removes these restrictions, opening the door for greater foreign direct investment in Argentine farmland and potentially increasing the valuation of CRESY's extensive land portfolio. While the decree has faced legal challenges, it remains in effect in late 2025 and signals a clear, pro-investment stance on land ownership. This deregulation, combined with the permanent reduction in export taxes, creates a much more attractive environment for CRESY's core business model of acquiring, developing, and selling farmland.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) - PESTLE Analysis: Economic factors

Argentine annual inflation expected to remain high, potentially exceeding 150% in 2025.

The primary economic factor for Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) is navigating Argentina's hyper-volatile inflation environment. While the outline mandates addressing the risk of inflation exceeding 150%, the market consensus for the 2025 fiscal year shows a dramatic slowdown from the 2023 peak of 211.4%.

The Central Bank's Market Expectations Survey (REM) from early 2025 projected the annual Consumer Price Index (CPI) to be around 25.9% by year-end, which is a significant deceleration. The International Monetary Fund (IMF) is slightly less optimistic, forecasting 2025 inflation at 41.3%. This wide range, from the low-end consensus of 23.2% to the high-end risk of 150%, underscores the country's persistent economic uncertainty. Honesty, managing operating costs and real estate valuations in this environment is a constant battle.

Here's the quick math on the consensus forecasts versus the high-end risk, which is crucial for CRESY's financial planning:

Fluctuating commodity prices for core crops like soy and corn.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria's agribusiness segment is directly exposed to global commodity price swings, particularly for soy and corn. For the 2025 marketing year, projections indicate a period of lower prices, driven by bountiful global supply and a strong US dollar.

The United States Department of Agriculture (USDA) projected the season-average farm price for corn in 2025/2026 to fall to around $4.20 per bushel, down from the 2024 price of $4.55. Soybeans face similar pressure, with the USDA's season-average price estimate for 2025/2026 projected at $10.00 per bushel, a substantial drop from the 2022 peak of $14.20. This downward price pressure means CRESY must defintely focus on maximizing yield and controlling input costs to maintain margins.

• Corn price forecast: $4.20 per bushel (USDA 2025/2026 season-average).
• Soybean price forecast: $10.00 per bushel (USDA 2025/2026 season-average).
• CRESY's 2025 campaign plan: Plant approximately 303,000 hectares, a 9% increase over the 2024 campaign.

Real estate valuation volatility, especially in urban and prime farmland markets.

The real estate market, a core part of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria's portfolio, is experiencing a recovery phase but remains volatile. The urban segment, primarily through its subsidiary IRSA, is seeing a strong rebound in US Dollar (USD) terms. Over the 12 months leading up to August 2025, house prices in Buenos Aires surged by 38.9% in USD terms.

Foreign investment is a key driver, now representing 15-20% of transactions in premium Buenos Aires areas, a dramatic increase from minimal levels in 2022-2023. Prime properties in upscale neighborhoods like Puerto Madero have reached prices of approximately $6,500 per square meter. The outlook for the 2025-2027 period suggests a continued 7-10% annual price appreciation in USD terms for premium markets, contingent on ongoing economic stabilization. This is a huge opportunity for CRESY to realize embedded value in its urban land bank.

High cost of financing due to elevated interest rates in local and international markets.

The cost of capital remains a major headwind for Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, despite a downward trend in the benchmark rate. The Central Bank of Argentina (BCRA) lowered its benchmark interest rate to 29% on January 31, 2025, a significant reduction from the high of 126.00% in October 2023.

However, the actual lending cost for businesses is much higher. In August 2025, major private banks were offering deposit rates between 50% and 58% to attract funding, with corporate deposits negotiated as high as 60%, which translates directly into high borrowing costs for companies like CRESY. For the real estate segment, the high cost of financing has historically crippled the mortgage market, though a recent downward trend in rates has seen mortgage activity soar by 1,042% in 2025 compared to previous crisis levels.

• BCRA benchmark rate (Jan 2025): 29%.
• Corporate deposit rates (Aug 2025): Up to 60%.
• CRESY Series XLVI Notes: Outstanding principal amount of USD 28,553,518, with an interest payment of USD 212,391.24 due in July 2025.

The company's reliance on international debt markets, evidenced by its USD-denominated notes, helps bypass some local volatility, but still ties its financing costs to the global interest rate environment and Argentina's country risk premium.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) - PESTLE Analysis: Social factors

You're operating in a global food system facing a fundamental shift, where how you farm is becoming as important as what you harvest. The social factors impacting Cresud are all about transparency, labor dynamics, and the political sensitivity of owning large tracts of land in South America. We need to map these near-term risks and opportunities to your core business model.

Growing global demand for sustainable food production and traceability

The market is defintely pushing for verifiable sustainability, and this is a clear opportunity for Cresud. The global food traceability market is set to hit $25.54 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of 9.6% from 2024. Consumers are now willing to pay a premium for transparency, with sustainability-marketed products continuing to grow at a rate above 17%.

This isn't a niche trend anymore; it's a core requirement for access to premium export markets like the European Union. Cresud has already taken concrete steps here, which is smart risk mitigation. For example, the company has certified its soybean production at one of its Argentine farms under the Round Table on Responsible Soy Association (RTRS) standard. Also, starting to measure your carbon footprint is a critical diagnostic tool for future compliance and market access.

• Consumer Expectation: Two-thirds of consumers consider environmental factors when buying.
• Market Size: Global food traceability market is $25.54 billion in 2025.
• Cresud Action: Certified soybean production under RTRS standard.

Rural-to-urban migration affecting labor availability for large-scale farming

The long-term demographic trend in Argentina is a shrinking rural labor pool. Agricultural employment naturally falls as a country urbanizes and mechanizes. Historically, Argentina saw a 41.5% decrease in the number of agricultural holdings (EAPs) over a 30-year period, which shows the scale of this structural change. You can't rely on cheap, abundant manual labor forever; the labor is moving to the cities.

Here's the quick math: Cresud's business model, which focuses on large-scale, highly mechanized operations, is inherently designed to mitigate this risk. By the end of the 2025 campaign, over 60% of Argentine farms are expected to adopt precision agriculture technologies, which reduces the need for manual labor and increases efficiency. This transition from labor-intensive to capital-intensive farming is a necessary adaptation to rural depopulation.

Consumer preference shifts towards plant-based proteins impacting crop mix

The global shift toward plant-based diets is a massive market force, estimated to reach a size of $85,000 million in 2025 globally. While the focus often goes to novel proteins, the core of this trend is still traditional crops. Cresud is a major producer of soybeans and corn, which are foundational ingredients in both plant-based meat alternatives and feed for traditional livestock. The key is to adapt your crop mix to higher-value, specialized pulses.

While flexitarians-who still eat meat but lean toward plant-based options-make up about 46% of the global consumer base, the demand for non-soy proteins like pea, chickpea, and fava bean is rising. This creates an opportunity for Cresud to diversify its crop portfolio beyond commodity soybeans and corn into these higher-margin pulse crops. Cresud plans to plant approximately 303,000 hectares in the 2025 campaign, and a strategic allocation of a small percentage of this land to high-demand plant-protein sources would be a smart move.

Social pressure regarding large-scale land ownership and land tenure rights

Owning massive land portfolios in South America, especially in Argentina, creates inherent social and political risk. The debate over concentrated land ownership is a constant in the region, centered on national sovereignty and social justice. The historical 'Rural Land Law' (Law No. 26,737) restricted foreign ownership to 15% of rural land at a provincial level and a maximum of 1,000 hectares per foreign person, and while its repeal is a pro-market signal, the underlying social pressure remains.

Cresud's real estate strategy, which involves buying, developing, and selling productive land, is directly exposed to this public scrutiny. In the 2025 fiscal year, the company reported selling a portion of the 'Los Pozos' farm in Argentina for USD 2.2 million and a portion of the 'Alto Taquari' farm in Brazil for BRL 189.4 million. These transactions, while financially sound, fuel the public debate about land speculation versus productive use and land access for rural families. This is a perpetual risk that requires a strong social license to operate, which means proactively engaging with local communities and securing clear land titles, especially in areas like the Gran Chaco where tenure is often informal.

Finance: Draft a risk-adjusted return model for specialty pulse crops (pea, chickpea) on 5% of the 2025 planted area by the end of the quarter.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) - PESTLE Analysis: Technological factors

You're managing a massive, diversified land portfolio, so technology isn't just an expense line; it's the operating system for your entire business model. For Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, the key technological factors in 2025 revolve around integrating data from the field to the balance sheet, especially across its 1.1 million hectares of land and its complex real estate holdings.

Increased adoption of precision agriculture (agtech) to boost yields and efficiency.

Cresud is doubling down on precision agriculture (agtech), moving past simple GPS guidance to a more data-intensive approach. The company committed to investing over $20 million in these techniques as of 2024, with a clear goal: boost crop yields by at least 15% over the next three years. That's a massive return on investment, and it shows a clear strategic commitment. This focus is critical, especially as the 2025 campaign saw the planted area increase to 303,000 hectares, a 9% jump from the previous season.

Here's the quick math on the expected impact: The company projects a total grain production of approximately 867,000 tons for the 2025 campaign, a 23% increase over the prior year. While favorable weather helped, precision tools are what lock in the efficiency gains and resource optimization. You can't manage a farm portfolio across four countries-Argentina, Brazil, Bolivia, and Paraguay-without this level of granular control.

• Site-Specific Management: Applying fertilizer and water based on real-time soil and crop data.
• Variable Rate Technology (VRT): Tailoring seed and input application to different zones within a single field.
• Yield Mapping: Using combine monitors to generate high-resolution data for future planning.

Use of satellite imagery and AI for real-time monitoring of CRESY's 1.1 million hectares of land.

Managing 1.1 million hectares of farmland and undeveloped land is impossible with boots on the ground alone. Cresud relies on remote sensing and artificial intelligence (AI) to create a virtual, real-time command center for its vast land base. Satellite imagery provides the Normalized Difference Vegetation Index (NDVI) and other spectral data, essentially giving you a health report for every square meter of your land.

The trend is clear: global satellite imagery use in precision farming is projected to increase by 45% between 2023 and 2025. Cresud's strategy leverages this by feeding the satellite data into AI-powered advisory systems. This allows farm managers to get predictive alerts on potential disease outbreaks, water stress, or nutrient deficiencies, enabling a targeted response rather than a costly, blanket application. This is how you protect your $20 million agtech investment and ensure you hit that 15% yield target.

Need for significant investment in IT infrastructure to manage diversified operations.

The sheer scale of Cresud's diversified operations-from cattle and grain production to urban real estate via its subsidiary IRSA-demands a defintely robust IT infrastructure. Think of the data flow: daily agtech inputs from 303,000 hectares of planted crops, plus the complex financial and operational data from IRSA's shopping malls and offices. This requires a strong backbone of cloud computing and enterprise resource planning (ERP) systems.

The need for IT investment is implicitly huge, even without a specific public budget number. For instance, the Urban properties and investments business (through IRSA) generated an adjusted EBITDA of ARS 103,136 million in the first half of FY2025, while the Agribusiness adjusted EBITDA was ARS 35,262 million. Managing the financial consolidation and compliance for these two vastly different, high-value segments is a major IT undertaking. Your system must handle hyperinflationary accounting (IAS 29) for the Argentine operations, plus the complexities of multi-currency transactions across four Latin American countries. That's a serious data challenge.

Digital platforms streamlining real estate transactions and property management.

In the real estate arm, the focus is on digital platforms to streamline transactions and property management. While the core asset value is in the land and buildings, the transaction layer is where efficiency is gained. The industry is rapidly adopting technologies like Blockchain for secure, transparent property records and AI-powered valuation for real-time market pricing.

For Cresud, this means digitizing the sales process for its land and urban properties. For example, a fraction of the Los Pozos farm was sold for USD 2.2 million, and a portion of the Alto Taquari farm was sold for BRL 189.4 million in the first half of FY2025. These are high-value transactions that benefit immensely from digital platforms that automate due diligence, smart contracts, and legal documentation. The goal is to reduce the time-to-close and lower the transactional friction, which is especially high in the complex regulatory environments of Latin America.

The table below summarizes the technological leverage points across the two main business segments:

The next step is to ensure your IT and Agribusiness teams are fully integrated, with a clear dashboard that maps the $20 million agtech spend directly to the 23% projected grain production increase.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) - PESTLE Analysis: Legal factors

You're operating a large-scale agribusiness like Cresud, which means your legal risks are less about a single law and more about the volatile, interconnected regulatory environment across multiple countries. The biggest near-term factor for Cresud in 2025 is the sweeping, pro-market deregulation in Argentina, which cuts costs but introduces new uncertainty in enforcement and policy permanence.

This shift has immediate, measurable impacts on labor costs and export taxes, but it also creates a defintely less predictable environment for environmental compliance and property rights. You need to map the cost savings against the risk of rapid policy reversal.

Complex and evolving labor laws in Argentina affecting farm worker costs and contracts

The Argentine government's labor reforms, enacted in late 2024 and effective through 2025, have fundamentally altered the cost structure for farm labor. The goal is to reduce the high cost of termination and litigation, which directly benefits a large employer like Cresud.

The key change is the elimination of several fines that previously doubled or tripled severance pay for deficient registration, which often fueled labor claims. Also, the trial period for indefinite-term employment contracts is now extended to six months generally, and up to one year for smaller employers, giving you better flexibility in new hires.

Here's the quick math: Labor litigation costs are set to drop because the interest rate applied to labor court claims is now limited to the Consumer Price Index (IPC) plus a simple annual interest of 3%, a significant reduction from previous, often punitive, rates. Plus, the legal regime for seasonal agricultural workers has been modified, subjecting them to a trial period and allowing them to be hired through temporary agencies, streamlining the workforce management for the agricultural campaign.

• Trial period for new hires: Extended to up to one year for small employers.
• Severance fines: Eliminated, reducing litigation-related termination costs.
• Litigation interest rate: Capped at CPI + 3% simple annual interest.

Environmental impact assessment (EIA) requirements for new land development projects

The legal framework for environmental protection is weakening in Argentina, which presents a short-term opportunity for faster land development but a long-term reputation and climate risk. The national government has significantly downgraded the Ministry of Environment to an Undersecretariat and cut its budget by over 65% in 2024.

The proposed legislative changes, such as the Investment Promotion Regime (RIGI), have been criticized for not explicitly demanding Environmental Impact Assessments (EIAs) or evaluating cumulative impacts for new projects. This suggests a potential relaxation of oversight on new land-use changes, including the conversion of native forests, which saw a loss of 140,000 hectares in 2023.

While this deregulation could accelerate Cresud's real estate development cycle, the company must still navigate provincial-level EIA requirements, which remain in place. Moreover, the global push for sustainability means Cresud's commitment to reducing agricultural carbon emissions by 20% by 2025, a stated national goal, will be scrutinized by international investors regardless of local law.

Property rights enforcement and legal framework stability across operating countries

Cresud's core business relies on the secure enforcement of property rights, particularly across its vast land holdings in Argentina, Brazil, and other regional markets. The stability of the legal framework is a major concern, especially in Argentina, given the rapid legislative changes. The new administration's focus on deregulation and fiscal stability (through the REIBP regime, for example) aims to strengthen investor confidence, but the speed of change itself creates a risk of judicial challenge and policy uncertainty.

The company continues to execute its land rotation model, demonstrating that transactions are still viable. For instance, in the nine-month period of Fiscal Year 2025, Cresud sold a fraction of the Los Pozos farm in Argentina for USD 2.2 million, and its subsidiary BrasilAgro sold a fraction of the Alto Taquari farm for BRL 189.4 million. These sales confirm the mechanism for property rights and transfers remains functional, but the underlying legal stability is a constant monitoring point.

Tax law changes, particularly wealth and income taxes on corporate land holdings

The Argentine government has implemented critical, near-term tax reductions that directly boost Cresud's agricultural segment profitability for the 2025 fiscal year. This is a clear, positive opportunity.

A temporary reduction in export duties (retentions) was announced, effective until June 30, 2025. This lowers the tax on soybeans from 33% to 26%, and on wheat and corn from 12% to 9.5%. This reduction directly increases the net price Cresud receives for its primary commodities.

For corporate land holdings, the Tax on Personal Assets (Wealth Tax) for foreign shareholders on their ownership interests in local entities is paid by the company as a substitute taxpayer at a rate of 0.5%. Furthermore, the general wealth tax rates are scheduled to decrease, ranging from 0.50% to 1.10% in 2025, down from a higher range in prior years. The standard Corporate Income Tax rate for Cresud remains at 25%.

Finance: Draft a 13-week cash view by Friday, incorporating the 6.5% to 7.0% export duty reduction benefit on estimated Q4 2025 soybean/wheat/corn sales to quantify the immediate cash flow impact.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) - PESTLE Analysis: Environmental factors

You know that in the agribusiness sector, the environment isn't just a compliance issue; it's a core operational risk and a primary driver of long-term asset value. For Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY), managing climate volatility and regulatory shifts around land use is central to their strategy, especially given their expansive, diversified land portfolio across South America.

Increased frequency of extreme weather events (droughts, floods) impacting crop yields.

The most immediate environmental risk you face is climate volatility, which directly hits your top line through crop yield fluctuations. The benefit of CRESY's regional diversification-across Argentina, Brazil, Paraguay, and Bolivia-is clear when you look at the recent past. For example, during the severe drought in Argentina in the 2022/2023 season, the country's overall soybean production plummeted by 50% and corn production by 35% compared to initial estimates.

CRESY's diversification helped mitigate the effect, limiting their overall production drop to just 4% below the prior year's level. Now, for the 2025 campaign, CRESY anticipates a strong rebound, projecting a total grain production of approximately 867,000 tons, representing a substantial 23% increase over the previous campaign. This recovery confirms that geographic spread is your best defense against localized extreme weather.

Pressure to reduce carbon footprint and adopt regenerative agriculture practices.

Stakeholder pressure for climate action is moving from abstract goals to concrete, measurable farming practices. CRESY is positioning itself as a leader by adopting practices that fall under the umbrella of regenerative agriculture, which focuses on soil health and carbon sequestration (capturing and storing carbon dioxide from the atmosphere). You are already using 100% direct seeding (no-till farming) across your operations, which is a foundational regenerative practice, and are increasing your use of cover crops and precision agriculture.

The company has adhered to major industry programs to formalize this commitment:

• Joined the Pro-Carbon and CORTEVA-CARBON GROUP programs, which aim to increase carbon sequestration in the soil.
• Achieved Round Table on Responsible Soy Association (RTRS) certification, guaranteeing best sustainable practices for a portion of your soybean production.
• Started measuring the corporate carbon footprint in Argentine farms to establish a baseline and future reduction roadmap.

Honestly, the market is quickly moving to value carbon-neutral food production, so getting your baseline numbers locked in is defintely the right move.

Water usage regulations becoming stricter, especially in arid farming regions.

Water is a finite resource, and its management is becoming a flashpoint, especially in Argentina, where agriculture accounts for a massive 74% of the country's water withdrawals. The national government's ambitious National Irrigation Plan (NIP) aims to double the irrigated area to 4 million hectares by 2030 while simultaneously pushing for increased water efficiency.

This creates a dual pressure: you need to increase efficiency to meet sustainability demands, but you also face competition for water resources, particularly in areas dependent on glacial meltwater. CRESY's response is to lean heavily on precision agriculture technologies, which use satellite-based monitoring and sensors to optimize every input, including water. This technological adoption is essential for mitigating the risk of future water scarcity and regulatory restrictions on water rights.

Biodiversity protection requirements on undeveloped portions of their land portfolio.

Your vast land portfolio includes significant portions of undeveloped natural ecosystems, which are increasingly subject to national and international conservation mandates. CRESY manages approximately 863,000 hectares of land across the region, and a large portion is designated as reserves.

Specifically, CRESY maintains 100,000 hectares of nature reserves in Argentina alone, which is a key part of your land reserves strategy. The regulatory environment in Argentina, particularly the Forest Law, mandates land-use planning that categorizes forested areas into 'red' (strict conservation) and 'yellow' (sustainable use) zones, which directly affects the monetization potential of your land bank. Furthermore, new mechanisms like Other Effective Conservation Measures (OMECs) are being implemented to recognize and formalize private conservation efforts, which could provide a new framework for managing your approximately 427,600 hectares of Land Reserves (or 465,000 hectares depending on the latest report) outside of intensive agriculture.