News

The U.S is buying Australia's agricultural land

The U.S is the biggest international investor into Australian agricultural land.
The U.S is the biggest international investor into Australian agricultural land. Jamie Brown

INVESTMENT in Australia's agricultural land has soared to $4.6 billion, with the bulk of that coming from the US.

American investors spent $1.3 billion buying Aussie farmland in 2015-16, with China hot on their heels with investments totalling $996 million.

The figures were revealed in the Foreign Investment ­Review Board's annual report for 2015-16, released last week.

It shows investment in Aussie farms has jumped to $4.6 billion - almost double the $2.5 billion recorded in the previous year.

The increase was due to the Government lowering the FIRB's agricultural land screening thresholds in March 2015, from $252 million to $15 million for agricultural land and $55 million for agribusinesses.

"Due to this change, around 110 proposals for agricultural land, valued at approximately $1.4 billion, were screened in 2015-16 that otherwise would not have been screened previously," the report read.

China's investments ­included the $280 million purchase of Tasmania's Van Diemen's Dairy.

The UK invested $338 million - well behind the US and China - to be the third-largest source country in 2015-16, followed by Singapore with $264 million.

CBRE regional director for agribusiness Danny Thomas said the figures were not surprising and expected the growth in agricultural investment to continue.

"We're seen by the rest of the world as a politically stable environment, and with the ­exchange rates ... we look like good value," Mr Thomas said.

He said CBRE had seen a slowdown in inquiries from mainland China but he expec­ted capital to continue coming from Hong Kong.

One to watch, however, was Canada, which invested $240 million for 2015-16.

"There's a whole lot of pension funds, institutional investors that are used to investing in natural resources and agriculture on North and South America," Mr Thomas said.

"It's simply a natural extension of their investment programs that they're now starting to look at Australia and New Zealand."

The FIRB report showed there were 227 agricultural sector approvals - a fraction of the 41,445 approvals across all sectors, and accounting for just 2 per cent of the $247.9 billion investment across Australia.

News Corp Australia

Topics:  agriculture editors picks farming property real estate united states


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

How to survive the robot jobs revolution

Nicholas Davis is here to tell you that it’s not all bad news

I was just screaming 'my baby is in the car'

An image of the burnt out car on Springfield Parkway taken on June 10, 2004.

Road tragedy now mum's inspiration

Couple in their 60s rushed to hospital after crash

Two people have been taken to hospital.

A MAN and woman are being transported to hospital after a rollover

Local Partners

Model Bella Hadid's see-through dress shocks in Cannes

JUST WHEN you thought you’d all of Bella Hadid’s supermodel figure — she gets her Cannes out on the red carpet of an AIDS gala dinner in France.

No room for morbid fans

Chris Cornell.

Fans want to stay in the hotel room where Chris Cornell died

Star Wars' 1977 Stormtrooper head banger confesses

A Stormtrooper is responsible for the biggest blunder in a Star Wars movie. Picture: Supplied

Man in most famous blooper in Star Wars history breaks silence

Lyn's knock-out show gets her to next round on The Voice

ONWARDS AND UPWARDS: Lyn Bowtell is through to the battle rounds on The Voice.

'It was bitter sweet to win like that'

Is this the talent you get when you limit electronics?

Cassidy Kilburn in the Get the Beat International Dance Competition.

Cassidy, 11, preparing for national dance championships

Dreamworld may supersize with 'Disneyland expansion'

Dreamworld could become a “more attractive and entertaining park”.

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Lost dough leaves sour taste after company collapse

Kathleen and John Mahoney from Sugar and Spice Bakery were stung after the collapse of Cantro Pty Ltd and are still owed money.

Supermarket operator collapse leaves sour taste for bakery

Open for inspection homes May 25-31

Check out this weekend's homes open for inspection

How Toowoomba house prices compare in Australia

For sale sign in front of home.

Here's what $700,000 will buy you in Toowoomba, Brisbane and Sydney

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

Ready to SELL your property?

Post Your Ad Here!