Page 22 - The Land Spring Property Guide

22 SPECIAL PUBLICATION Thursday September 30, 2021 www.acmadcentre.com.au
NEWS

Foreign farmland saviours?

BY MARIAN MACDONALD and the community.
"It impacts just about
FOREIGN investment in everything from cropping to
Australian farmland is polit- staff not knowing whether
ically sensitive but both the there's a new owner or if
peak farmer lobby body and they're employed."
agricultural brains trust say The NFF's Ash Salardini
we need more of it. said red tape could see
This month's sale of Law- foreign investors add a
son Grains to a Canadian "risk premium".
company outraged federal "Instead of seeking 5-6pc,
National MP Bob Katter. they might want a 7-8pc re-
"Australia has become a turn and it's very important
land of modern-day serfs to ensure we're getting cap-
working for the foreign land- ital at the cheapest possible
lord," he said. price so more of that value
The amount of Australian stays in Australia," he said.
farmland owned or leased by LAWD director John McK-
foreigners has actually flat- illop said FIRB turnaround
lined over the last five years times had recently improved
at about 52 million hectares, but described cost increases
making up 13.8 per cent of as "gouging".
the total in June 2020.
Still, it contributes an Family farm strength
important chunk of the $8.7 He said while foreign
billion of net capital AgriFu- funds were critical to grow
tures calculates is needed Australian agriculture, farm-
each year for the next decade land prices were still driven
to hit the National Farmers by family farms, citing the
Federation's target of $100b SOLD: The iconic Tubbo Station in the Riverina has sold to Hewitt Cattle Australia, backed by a Canadian superannua- interest in the 22,500ha Co-
in farmgate production. tion fund. rinella Group, which LAWD
The difference between is marketing.
that $8.7b and the $1.2b aver- International waves Australia has some of the "In the first week we had
age of the last 30 years meant Canada and the USA were world's most stringent rules inquiries from 160 groups,"
foreign investment needed providing the latest in waves surrounding foreign invest- Mr McKillop said.
to grow, NFF chief economist Quite frankly, they're letting the of foreign investment which ment. Korea, France and "They're not corporates,
Ash Salardini said. CBRE Agribusiness man- Mexico are the only OECD they're all family operators
"The Australian financial Canadians cut our lunch for us. aging director David Good- member nations to score wanting to expand, so the
Dr Stephen
sector isn't going to stump‘‘ Anthony fellow said swept through higher than Australia on the large-scale professional fam-
up the billions to get to that Australian agriculture every index measuring restrictions ily farmer sets the market
2030 target, so that's where "Typically, for-profit su- Australian super funds, he 30 years. on foreign direct investment. and the corporates follow
foreign investment comes perannuation funds do not said, hadn't treated agricul- Japanese investment in While the approvals pro- in behind."
into play to capture that invest in Australian agricul- ture the same way as assets Australia's beef industry cess managed by the Foreign There was, however, a
shortfall between what we ture," it told the committee. like infrastructure, failing to during the 1980s, he said, Investment Review Board limit to the amount farmers
can do domestically, and get Macroeconomics Advi- set up the necessary special- typified the new technology, worked well, Pricewater- could borrow, he said, par-
to what we need," he said. sory chief economist Ste- ist groups, invest globally or practices and market access houseCoopers partner Greg ticularly when interest rates
There are two local invest- phen Anthony was, until build supply chains. that offshore money and Quinn said it was too slow. rose again.
ment sources: debt lent to March, the chief economist "There are dollar bills left connections could bring. Waiting times for FIRB ap- "Whilst the banks have
familyfarms,andequityfrom for Industry Superannua- on the sidewalk they could "They learned that not proval grew from a median been very good in lending
corporates and institutions tion Australia. just pick up and put in their every cattle station in 41 days in 2018/19 to 48 days money to expanding farm-
like superannuation funds. He said that, aside from pockets," Dr Anthony said. Australia produces really in 2019/20 but Mr Quinn ers, there's going to come a
the need for Australian su- "Quite frankly, they're let- high quality beef 12 months said PwC factored in three point where they just can't
'Cutting our lunch' per funds to maintain a high ting the Canadians cut our of the year," Mr Goodfellow to six months for large and go any further," Mr McKil-
In 2018, peak body Indus- level of liquidity and com- lunch for us." said, "so they followed that complex deals. lop said.
try Superannuation Australia pete on a quarterly "league The Foreign Investment up with a massive invest- "If we continue to increase The NFF was encouraging
told a parliamentary com- table" to retain membership, Review Board reported $8.3b ment into our feedlot indus- red tape for foreign invest- banks and the Australian
mittee that its members there was a more fundamen- investments in agricultural try, into meat processing but, ment, it's going to impact Prudential Regulation Au-
had about $1.6b in agricul- tal problem. and forestry during 2020, up most importantly, into open- funding, impact the market thority to recognise risk mit-
ture-related assets, a mere "The bottom line is they from $7.3b. More than 30 per ing up the supply chain of and its liquidity," he said. igation around drought re-
0.2pc of funds under man- don't understand the asset cent of the increase came our beef from Australia into "Time kills deals and caus- silience and even succession
agement. class," Dr Anthony said. from Canada. the Japanese market." es major uncertainly for staff planning, Mr Salardini said.
Busy start to 2021 saw many properties sold

IT HAS been a busy six Melrose sold to an out of 16 hectares of prime farm- rest Lodge at Bigga.
months for QPL Rural with area buyer who was inter- ing area. It was an exceptionally
many properties chang- ested in investing in irriga- It was the perfect match designed home, suited to the
ing hands. tion area. for the out of area buyer area enabled a great selling
Top sales in the first part of The sale provided a great and was a fantastic result for factor for the buyers.
the year have included farms result for the vendor and the vendor. Meanwhile, QPL Rural has
590, 593 and 595 at Coleam- buyer, with further opportu- Another lifestyle home in opened its fourth office, this
bally. nity to locals and those out Garner Road, Leeton went one located in Coolamon.
One of the farms sold to a of the area for the chance on the market. Their other office lo-
local farmer and the two oth- to lease. Beautifully designs, and cations includes Temora
ers to an out of area buyer. Tickawarra, a 668 hectare elegantly presented, this life- (head office), Narrandera
"This was a successful re- dairy farm at Wakool with a style home received a large and Leeton.
sult for the vendor, and has large water entitlement also BIG DAIRY: Tickawarra, a 668 hectare dairy farm at number of enquiries with Thisnewofficeisspecialis-
provided the opportunity sold well. Wakool with a large water entitlement also sold well. buyers ready to purchase ing in lifestyle and rural sales
for a leasing arrangement," The farm featured a similar lifestyle properties. covering the entire Riverina.
agents said. 50-unit rotary dairy with au- an extensive campaign," Willandra at Temora was More than 405 hectares of QPL Rural is a sponsor of
Melrose at Coleambally to feed and draft. agents said. marketed as a lifestyle op- beautifully presented native many major events within
also came under strong de- "Wereceivedafantasticre- It also had a 800 portunity situated on the Australian bushland and the Riverina and a supporter
mand when it hit the market. sult for the vendors, through head feedpad. outskirts of Temo with about pasture was offered with For- of the RUOK campaign.