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Foreign Ownership of Australian Agricultural Land and Water

Australia is one of the world’s main markets for institutional investment in both agricultural land and water – with the market for the latter holding a unique status globally. Naturally, foreign investors are attracted to the quality of the opportunities on offer.

On the land side, almost all types of agriculture investment are available, from broadacre cropping or irrigated permanent agriculture, to some the largest cattle stations on the planet. The country’s water market, meanwhile, which has ensured water is a regulated, tradable commodity separate from land, is the envy of others overseas.

Foreign investments is naturally a major component of the institutional capital flowing into Australian land and water, as the stories that appear on this page highlight.

LATEST AUSTRALIAN FOREIGN OWNERSHIP STATISTICS

Foreign ownership of Australian water: 2022 statistics

The Australian Taxation Office has published its annual report covering the state of its register of foreign ownership of Australian water – with Canadian investors still the largest holders of water entitlements.

Foreign ownership of Australian farmland: 2022 statistics

The amount of Australian farmland in foreign hands fell by 10% in the year to June 30, 2022, according to the latest set of government figures.

PREVIOUS STATISTICS

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Foreign pension funds farm Aussie fields as local supers stay away

Categorization, commodity risk and accessing scale are among the issues Australian superannuation funds cite when it comes to investing in agriculture – but foreign pension funds do not appear to have the same misgivings.

Agriculture Capital adds ex-Equilibrium exec for carbon credit push

Ben Vitale says his role will focus in part on commercial agreements to monetize regenerative practices which the firm has had in place since its 2014 founding.

Macdoch Ventures seeks to plug ‘big gap’ in agtech funding

The venture arm of Prue Murdoch and Alasdair MacLeod’s agri-food focused investment group Macdoch is eyeing later-stage fund investments.

Australian farmland transactions hit record low amid slower growth in H1 2024

Rural Bank’s first-half analysis of Australian farmland shows values continue to rise but at a slower pace than the highs of the last four years.

RELATED COVERAGE: INVESTMENT IN WATER

Acre Impact Capital gets $25m commitment from US DFC

The fund manager has now raised $125m against a $300m for Export Finance Fund I.

Warakirri launches cropping business to oversee A$300m Mormon-owned asset

Warakirri Asset Management’s new business Solterra will manage a portfolio on behalf of Alkira Farms, a company associated with the Church of Jesus Christ of Latter-Day Saints.

Impact Ag offshoot snaps up Australian Food and Agriculture Company for A$780m

Australia’s opportunities in natural capital made it a natural fit for the US-listed Agriculture and Natural Solutions Acquisition Corporation.

Australian water looks calm before the predicted storm

With government water buybacks hanging over the market, investors have been striking early to secure entitlements before prices inevitably rise.

Australian water entitlements drop in value for second year

The Aither Entitlement Index has declined due to economic pressures, although prices could be set to rise as the government purchases water through its voluntary scheme.

RELATED COVERAGE: INVESTMENT IN FARMLAND

Foreign pension funds farm Aussie fields as local supers stay away

Categorization, commodity risk and accessing scale are among the issues Australian superannuation funds cite when it comes to investing in agriculture – but foreign pension funds do not appear to have the same misgivings.

‘They came to us for a deal’ – Pittman explains $289m Farmland Reserve sale

Farmland Partners chairman Paul Pittman says The Church of Latter-Day Saints affiliate Farmland Reserve was more interested in buying row crop assets than permanent crops.

Agriculture Capital adds ex-Equilibrium exec for carbon credit push

Ben Vitale says his role will focus in part on commercial agreements to monetize regenerative practices which the firm has had in place since its 2014 founding.

Homestead adds FarmTogether exec amid expanding credit portfolio

David Chan says changes in the macro environment have created ‘potentially a generational opportunity’ in lending to US growers struggling to find working capital.

Australian farmland transactions hit record low amid slower growth in H1 2024

Rural Bank’s first-half analysis of Australian farmland shows values continue to rise but at a slower pace than the highs of the last four years.
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