Qatar buys millions of south australian farmland

Burra, Australia Photo: Callie Nickolai

Hassad Australia, which is owned by the Middle Eastern Government, invested more than $73 million in the country, a move that follows purchases in other territories. The land will be used for crop production and

Hassad now has a portfolio of 14 major farms or property clusters across four Australian states, covering a total of 287,000 hectares. The latest land purchased will be used for crop production.

The move from Qatar has renewed calls Down Under for tighter regulations surrounding foreign farmland investment. At present, land acquisitions over $248 million must be referred to the Foreign Investment Review Board, but the Federal Government proposed this threshold be reduced to $15 million. Any purchase by a government-owned foreign company must be approved by the FIRB without exception.

Others have also called for a register of agricultural land owned by foreigners, which the Government has agreed to implement.

Primary Producers SA chairman Rob Kerin told News.com.au that foreign investment was "welcome" but that investment in productivity to boost farm yields would be desirable, as well as joint venture investments, which would see overseas investors team up with local owners, rather than buy them outright.