Australia

As the world's available farming land shrinks in the face of population growth, climate change and soil degradation, Australia's vast tracts of land are going to be increasingly important for global food security. Is the sell-off in Australia's long term interests?

Foreign interests including state-owned companies from China and the Middle East are increasingly looking to Australia to secure their food production by purchasing key agricultural assets.

Wilmar, which already owns 200,000 ha of sugar cane plantations in Indonesia, said it intended to use Sucrogen’s proven expertise in the sugar business to pursue growth strategies in “Indonesia and other high potential Asian markets.’’

TIAA-CREF owns agricultural land in the US, Australia, Brazil and central and Eastern Europe, most of which is leased out.

Western Gulf Advisory, a Bahrain-Zurich based company, plans to invest $1 billion into the Australian economy, including farm acquisitions, over the next few years.

A rush of foreign investment interest in Australian farmland is stirring new concerns about just how much overseas ownership of local agricultural resources is too much.

The Chinese Government is buying Australian farms to directly feed its population, a senior Liberal said on the eve of a visit by a top Bejing official.

Questions have been raised at a Senate inquiry in Canberra about whether foreign investment rules go far enough to keep Australian agriculture sustainable.

Hassad Food Company intends to invest $500mn to $700mn this year for projects across the world as part of its mission to ensure food security for Qatar, chairman and managing director Nasser bin Mohamed Mubarak al-Fuhaid al-Hajri has said.

There are growing concerns that a legislative loophole could allow vast tracks of Australia's farmland to be sold to the Chinese Government.

"As more investors look into the opportunities that developed nations present there will be no need to go underground or be ashamed of these deals," said Hakan Agro's Tomar.

Foreign donors are promoting land registration in Papua New Guinea to facilitate a farmland grab, under the guise of agricultural development.