Jun 29, 2011

Who’s who in $4.4 trillion foreign farmland spending spree

As controversy bubbles over the latest big local farmland buy-up and what it means for food production, it's worth looking to see where these foreign raiders are coming from, who's backing them and how other countries are tightening regulations to stop them.

Tom Cowie

Crikey journalist

As controversy continues to bubble over the latest big local farmland buy-up and what it means for food production, it's worth looking to see where these foreign raiders are coming from, who's backing them and how other countries are tightening their regulations to stop them. New regulations were recently introduced in New Zealand which may potentially restrict who can buy agricultural land, after local farmers were repeatedly courted by foreign-controlled interests. The new provisions, introduced in January, require extra tests on overseas investment applications for "sensitive land" -- which includes farmland. Ministers are now able to consider whether New Zealand's economic interests are being adequately promoted and safeguarded by any proposed purchase. "Large" purchases, which are 10 times the average farm size (ranging between 7.1 hectares for an olive farm to 443 hectares for a sheep farm), will also need to demonstrate a commitment to local involvement to get the minister's approval. To try and avoid companies acquiring land in dribs and drabs, the new tests say purchases will still need to be tested if they are bought in one transaction or in multiple purchases over time. China-based Shanghai Pengxin is currently providing the biggest test of the new laws, as it waits on approval from the Overseas Investment Office to buy 8000 hectares of dairy properties belonging to the Crafar family. Latin America, another target for foreign raiders looking to buy up big blocks of farmland, has also looked to tighten ownership laws. Last August, Brazil’s attorney-general reinterpreted a 40-year-old law to make it significantly harder for foreigners to buy land in that country. Argentines followed suit last month, putting a law before its Congreso de la Nación to limit the size and concentration of rural land foreigners could own. In Uruguay, the current government is also looking to restrict transfer of land to foreign ownership, after it failed to pass under the previous administration. In Canada, where provinces are in charge of regulating how much farmland foreigners can buy and regulatory frameworks vary, the National Farmers Federation says the country is losing its grip on prime food-producing land. They say it's sovereign wealth funds, backed by government money, which are buying up large swathes of agricultural land to capitalise on high food prices and avoid potential food shortages. According to the Sovereign Wealth Fund Institute, more than $US4.41 trillion worth of assets are held by these funds, most of which has originated from the harvesting of oil or gas resources. Middle East oil states such as Saudi Arabia, United Arab Emirates and Qatar -- together with China, Norway and Russia -- have the largest sovereign wealth funds. Recently, Crikey reported on the extent to which Qatar-based Hassad Foods had been buying up sheep grazing land in Queensland and Victoria's Western District. Backed by the Qatar Investment Authority, a sovereign wealth fund with around $85 billion in assets, Hassad has invested more than $60 million in prime agricultural land -- with a further $35 million in properties reportedly on the radar.

Crikey has begun mapping the recent purchases of prime Australian farmland by overseas interests (click the image to view the map)

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18 thoughts on “Who’s who in $4.4 trillion foreign farmland spending spree

  1. Pamela

    When i heard this am that the Government could not say what percentage of land was owned by foreign Corporations, I nearly choked on my porridge.

    What sort of shonky business is operating in Canberra that our Government can’t even keep track of the farm, of which bits are no longer ours.

    I despair of the competency of our elected representatives on both sides.

    Thank God for the Greens- at least they are questioning the wisdom of our current – Flog it off and don’t ask about the consequences approach to our children’s future.

  2. stephen martin

    So what is new ? The same thing is happening in the resource sector. Andrew Liveris the CEO of Dow Chemicals in the USA is from a local Darwin family; recently he was in Darwin and while there he complained about the lack of downstream production in the gas industry in Australia and more particularly in Darwin. Saying among other things that Dow would like to be here if there was a guaranteed supply of gas for chemical production. It looks like all going to Japan and elsewhere though. Nice work ! we will end up with some large holes in the ground and little else.

  3. nicolino

    The FIRB threshhold needs very urgently to be revised downwards. $231 million is absurdly generous to foreigners. Just try buying land in Japan for instance.
    Nevertheless it just shows you how slack everything is here in good ol’ Oz. What was that about being a quarry for the rest of the world?
    Bill Shorten on Radio National this morning was quick to blame state governments.
    This situation beggars belief. We deserve what we get out of all of this. We voted these animals in to the parliament after all. Sorry, I am giving animals a bad name,.

  4. Michael Virant

    Why are Australia’s prime food and livestock parcels of land being snatched up by forward thinking foreign investors? Other fertile areas around the globe are also being acquired at a frenetic pace. The answer is blinding obvious: climate change is real and the astute buyers’ lands are unproductive or soon will be while their populations show no sign of decreasing. Food security will make the war on terror look like a sad side show. And the 3 ring circus goes on and on.

    For example, the aussie battler is bitchin’ to get more middle class welfare and in a frenzy of denial over climate change. We listened to Abbott and failed to look over the horizon. Don’t expect any favours from foreigners or our political folk to feed future families! (Enough f words – we all know where that’s heading.)

    With Queensland set to sell sugar to the US military as bio fuel the pill will surely be a bitter swallow.

    Over in the other circus tent there is a righteous sigh as aussie beef is humanely slaughtered somewhere overseas. Meanwhile truly low income people in Australia are wondering if they’ll ever be able to afford a beef roast again in their lifetime.

    Diversion, denial and a diet of drivel. Who’s the biggest loser now?

  5. Thanxkeem

    (((A Treasury submission said foreign investment brought additional capital and jobs to the sector.)))

    Tired of hearing this same old lame excuse put out by these faceless bureaucrats, as they sell our soul to foreign interests. Food producing rural properties are keynote to the health of any nation and to sell it off under existing conditions is TREASONOUS!!!

    Australia is becoming a whore who refuses to close her legs.

  6. Pamela

    DIET OF DRIVEL- love it
    Thats what our politicians are feeding us.

  7. Suzanne Blake

    The Federal Goverment needs to WAKE and stop this now. Even Tony Windsor has sold to the Chinese.

    Stop sleeping, start governing.

    The Agriculture Minister is way out of his depth, as seen with Live Cattle knee jerk.

  8. eric

    I dont really care anymore as we hurtle towards an Abbott/News Corp government

    Australia deserves what is gets in the future and thank christ I wont be here to see the destruction of a once good counrty.

  9. Fool

    Politicians who do not represent the people!
    There are many other countries around the world that will not sell land to any foreign person or entity!
    The sell off/out of Australia has being going on for a long time; perhaps it time Australians actually woke up and gave a shit we may have a place to live in the future. If they spent as much time keeping an eye on politic’s as they do sport we may have some hope!
    Viva the revolution; before we end up subservient to the new feudal lords – corporations!

  10. Roquefort Muckraker

    Hey “Fool” I agree with your sentiment entirely, but I wonder if your warning is too little too late. Didn’t the corporate buy out happen a long time ago? The happy thing about buying Aussie land is that they can’t take it with them.

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