Page 14 - Queensland Country Life Spring Property Guide

14 SPECIAL PUBLICATION Thursday September 30, 2021
NEWS
SNAPPED UP: One of Australia's biggest corporate RIVERINA GEM: Hewitt Cattle Australia chief executive INVESTMENT: Australian agriculture has been seen as
grain growers, Lawson Grains, was sold to an Australian officer Michael Hewitt said Tubbo was a rare gem in a one of the few boom investments by foreign companies
forestry manager backed by Canadian super fund. competitive property market.
Foreign investor saviours?
BIG BUY: Hewitt Cattle Australia just recently bought the historic 14,875ha Tubbo invest in Australian agricul- importantly, into opening up point where they just can't
Station in the Riverina, backed by a Canadian superannuation fund.
.
during the pandemic.
BY MARIAN MACDONALD Macroeconomics Adviso- from Australia into the Japa-
ry chief economist Stephen nese market."
FOREIGN investment in Anthony was, until March, Australia has some of the
Australian farmland is polit- the chief economist for world's most stringent for-
ically sensitive but both the Industry Superannuation eign investment rules, rank-
peak farmer lobby body and Australia. ing fourth in the OECD.
agricultural brains trust say He said that, aside from While the FIRB approvals
we need more of it. the need for local super process worked well, Price-
This month's sale of the funds to maintain high li- waterhouseCoopers partner
US-owned Lawson Grains quidity and compete on a Greg Quinn said it was too
to a Canadian company quarterly "league table" to slow.
outraged Katter's Australian retain members, there was a Waiting times grew from
Party MP Bob Katter. more fundamental problem. a median 41 days in 2018-19
"Australia has become a "The bottom line is they to 48 days in 2019-20 but Mr
land of modern-day serfs don't understand the asset Quinn said PwC factored in
working for the foreign land- class," Dr Anthony said. three to six months for large
lord," he said. Australian super funds, he and complex deals.
Over the last five years, said, hadn't treated agricul- "If we continue to increase
Australian farmland owned ture the same way as assets red tape for foreign invest-
or leased by foreigners has like infrastructure, failing to ment, it's going to impact
actually flatlined at about 52 set up the necessary special- funding, impact the market
million hectares, making up ist groups, invest globally or and its liquidity," he said.
13.8 per cent of the total in build supply chains. "Time kills deals and caus-
June 2020. "There are dollar bills left es major uncertainly for staff
Still, it contributes a big on the sidewalk they could and the community.
chunk of the $8.7 billion just pick up and put in their "It impacts just about
of net capital AgriFutures pockets," Dr Anthony said. everything from cropping to
calculates is needed each "Quite frankly, they're let- staff not knowing whether
year for the next decade to ting the Canadians cut our there's a new owner or if
hit the National Farmers' lunch for us." they're employed."
Federation's $100b farmgate The Foreign Investment LAWD director John McK-
production target. Review Board reported $8.3b illop said FIRB turnaround
The difference between investments in agricultural times had recently improved
that $8.7b and the $1.2b aver- and forestry during 2020, but described cost increases
age of the last 30 years meant up from $7.3b. More than as "gouging".
foreign investment needed 30pc of the increase came
to grow, NFF chief economist from Canada. Family farm strength
Ash Salardini said. While he said foreign
"The Australian financial International waves funds were needed, farm-
sector isn't going to stump Canadian and US funds land prices were still driven
up the billions to get to that were the latest in waves by family farms, citing the
2030 target, so that's where of foreign investment that interest in the 22,500ha Co-
foreign investment comes swept through Australian rinella Group that LAWD
into play to capture that agriculture every 30 years, is marketing.
shortfall between what we CBRE Agribusiness manag- "In the first week we had
can do domestically, and get ing director David Goodfel- inquiries from 160 groups,"
to what we need," he said. low said. Mr McKillop said.
There are two local invest- Japanese investment in "They're not corporates,
ment sources: debt lent to Australia's beef industry they're all family operators
familyfarms,andequityfrom during the 1980s, he said, wanting to expand, so the
corporates and institutions typified the technology, large-scale professional fam-
like superannuation funds. practices and market access ily farmer sets the market
that offshore money and and the corporates follow
'Cutting our lunch' connections could bring. in behind."
In 2018, peak body In- "They learned that not There was, however, a limit
dustry Superannuation every cattle station in to the amount farmers could
Australia said its member Australia produces high borrow, Mr McKillop said,
funds had about $1.6b in quality beef 12 months of the particularly when interest
agriculture-related assets, a year," Mr Goodfellow said. rates rose again.
mere 0.2pc of money under "So they followed that up "While the banks have
management. with a massive investment been very good in lending
"Typically, for-profit su- into our feedlot industry, in- money to expanding farm-
perannuation funds do not to meat processing but, most ers, there's going to come a
ture," it wrote. the supply chain of our beef go any further," he said.