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Foreign ownership and mining of farm land under renewed scrutiny.

Mick Keogh - Thursday, August 26, 2010

Recent developments in both Australia and New Zealand have again put the issue of foreign ownership of farm land (and competition for farm land from mining and forestry) under renewed scrutiny.
In New Zealand, the issue has been sparked by the proposed purchase of Crafar Farms (a group of NZ dairy farms) by China Jin Hui Mining Corporation. NZ Prime Minister John Keys first responded by warning about the dangers of New Zealanders becoming tenants of their own country, but has qualified his stance by warning against a total ban on overseas ownership. Meanwhile, a group of NZ businessmen has established a "Save the farms" group to lobby against overseas ownership.

In Australia the overseas ownership issue has not gained the same degree of prominence, but concerns about farm land being lost to mining and urban expansion have become more prominent over recent years. This issue has recently been the subject of a review by the Senate Agriculture committee, which has recommended that "an audit be undertaken to establish the extent of foreign ownership of commercial agricultural and pastoral land, and ownership of water, in Australia, with particular emphasis on ownership by sovereign and part-sovereign-owned companies." Meanwhile, the Queensland Government has move to protect prime agricultural land, although the details of the arrangement are yet to be finalised.

 The issue is one that is certain to gain in prominence as mining expands in the NSW Hunter Valley and the Liverpool Plains, and overseas investors continue to be interested in acquiring Australian agricultural assets.    
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