February 11, 2015
Despite the fact that data from the Australia Bureau of Statistics shows that approximately 99% of farm businesses, and approximately 90% of farmland in Australia are Australian-owned, beginning in March, Australia’s Foreign Investment Review Board will examine all agricultural purchases valued in excess of A15 million (US$11.7 million). The previous threshold was A252 million. The majority of foreign interest in Australian agriculture has focused on the dairy sector, followed by sheep, beef and grain, and although the tightening of regulations is driven by caution regarding Chinese investment and control of the country’s agricultural resources, a recent parliamentary report indicates that the majority of foreign investment has been from Canada, which accounts for a quarter of the total, followed by the UK and the U.S.
Investors should be aware, the new regulations will be cumulative in nature. Meaning if a foreign party holds A10 million of investment and seeks to purchase assets with a value of A5 million at a later date, the Foreign Investment Review Board must approve the transaction.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service
Let GAI News inform your engagement in the agriculture sector.
GAI News provides crucial and timely news and insight to help you stay ahead of critical agricultural trends through free delivery of two weekly newsletters, Ag Investing Weekly and AgTech Intel.