FOREIGN investors have ramped up their takeover of Australian farms with agricultural land in the Riverina being targeted by Korean, Chinese and US companies.
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A fall in land prices – especially in the Murray-Darling Basin – coupled with good rain and crops, has sparked the rush and prompted companies to set up a permanent presence in the area.
The US-based Westchester Group has centralised its entire Australian operation in Wagga and is targeting an ageing population looking to sell.
“With the average age of farmers in Australia at 65 ... and the next generation not entering farming like they have in the past, this is opening the door for
opportunities to purchase quality properties that haven’t been on the market for generations,” says Westchester company material.
Griffith farmer John Ward recently found himself in this very position after his daughter left the family business.
“She just packed up and left and said ‘I have to make some money’ ... it brought me to tears,” he said.
After advertising his property in Riverina newspapers Mr Ward received approaches from Hong Kong-based advertising agents offering to distribute his listing to 1300 Chinese websites.
Other farmers are looking to take advantage of cashed-up foreign investors who, since 1984, have nearly doubled the amount of Australian land they own.
Korean investors recently bought land near Griffith and neighbour Joe Lando is hoping they will approach him.
“I’m going to offload my free properties, I just can’t take the hardship,” he said.
Currently there are no figures on the number of foreign-bought farms in NSW as this type of information isn’t recorded.
Queensland has introduced a registry – something Liberal senator and Junee farmer, Bill Heffernan, believes needs to happen here.
“That’s where we ought to go, if we don’t know what’s going on then how can we plan around it?” he said.
Mr Heffernan says as the global population rises rapidly, Australia will be poised to be the food bowl of the world – but not if land is sold to other sovereign funds.
- with Bloomberg
