Foreign sovereign wealth funds, pension funds, real estate investment trusts, and international companies are seeking large agricultural investments in Australia – many seeking a minimum of $500 million for a 50% stake in deals meaning the total value of the investment must be approximately $1 billion. But much of Australia’s agricultural industry is not ready for such investments. An increasing number of inquiries are coming from Japan and Korea, as well as from pension funds from Denmark, Russia and Sweden. Foreign investors are concerned however upon finding a lack of depth of farm management in the country and farmers not ready for such a large influx of capital. Another issue holding back large foreign investors is the atmosphere is xenophobia about foreign investments and offshore capital within Australia. Until there is more stability and a more welcoming position taken by regulators, large scale foreign investors may hold back.
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