Australia tightens controls on foreign farmland ownership

Foreign investment in Australian farmland and related businesses is coming under closer scrutiny.

About 11% of Australia’s agricultural land is foreign-owned, with the highest proportion (24%) in the Northern Territory. On 1 March the Australian government brought in new rules which mean that foreign investors buying farms and land in the country have to seek its prior approval.

A register of foreign ownership is also being compiled and the government is consulting on the definition of agricultural and land agribusinesses after introducing the new system.

See also: British dairy farmer locks in long term milk price in Oz

Approval must be sought on any farm or land purchase worth more than AUD$15m (about £7.5m).

A threshold of AUD $55m (about £28m) will be used to screen those who want to buy agribusinesses, a category likely to include grain and commodity trading businesses, food, wool and forestry processors.

The measures are cumulative so that any further purchases by foreign interests, which already own AUD $15m-worth of Australian farmland will also need approval.

Investment in Australian farmland has been primarily by Canadian, UK and US interests but also more recently from the Middle East and China.

Prior to the change on 1 March, Australian law already controlled who invests what in other business assets but farmland was outside the scope of the rules.