THE WEEKLY TIMES | Billions of US investment into Aussie ag sparks debate

Questions around Australia's foreign investment regulations have been sparked by significant purchase of Aussie farmland by US companies.

Focus on the issue of farmland purchases not requiring approval from Australia's Foreign Investment Review Board when purchases are below $1.46 billion, was raised by Grain Producers Australia.

The Weekly Times reported that a recent level of buying activity had spurred GPA to call for an inquiry into whether the rules needed to be overhauled.

This followed Farmland Reserve – backed by the Church of Jesus Christ of Latter-day Saints in the US – securing Worral Creek Aggregation in Talwood, Queensland last year for $340 million and spending almost $140m for more than 14,000ha across three properties in New South Wales.

“If the FIRB national interest test isn’t fit-for-purpose, and risks our sovereignty, while putting our farmers at a competitive disadvantage, then it needs to be urgently updated and modernised, before it’s too late,” GPA chief executive Colin Bettles said.

Mark Barber, head of agribusiness investment services for Elders Rural Services, said the maturity of the Australian market, the ability to deploy large amounts of capital in single transactions and the sophistication of the corporate ag sector in Australia had US investors as active as they’ve ever been.

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