PUTTING it out there once again these ‘agricultural based news outlets’ …
-have to be careful … because to put at risk precious advertising income could spell PR disaster and financial ruin
SO are they …
– going to steer clear of telling it as it is OR
– stay neutral OR
– paint a picture that is capable of defying gravity
INDEED, are they going to include a bit of all of the above?
Let’s start with the language … this article starts off using the words ‘overseas buyer’ then it’s ‘foreign buyer’, why isn’t it ‘foreign owner?’
FURTHER these foreign buyers ‘will pay a premium,’ so are they seen purely as sources of greater profit?
Well 13% of Australia’s farmland has some level of foreign interest, is that code for ‘ownership?’
THEN we are told …
–since 2015 it has only increased slightly, by about 2%, in less than 5 years mind you, isn’t that still a lot of hectares?
THE ARTICLE then goes straight to the point again, sellers ought to be able to sell their property for the best possible price …
INDEED it says ‘is it for someone to be telling them who can and cannot buy their property in a free market for the best value’
WELL, there just might be some issues that need to be considered when looking at fairness
–can other Australians put up their property for sale on a free market? No, especially if we are talking about selling to foreigners
.however developers can sell 100% of ‘new homes ‘ to foreign buyers (FIRB Ruling 2009 and May 2017 Budget Reg.)
ISN’T it the case governments be they Local, State and Federal have in most cases invested heavily (for decades) in providing …
.all sorts of subsidies, grants, incentives, direct financial assistance, loans, in kind support, preferential tax arrangements, concessions and so on
TO a point where they could rightly feel they too have an interest as to what happens with the sale of Australia’s farmland
SHOULDN’T Australians and their politicians be concerned about the National Estate?
SHOULDN’T they be assured about the Sovereignty of Australia’s productive farmland?
IS Australia’s next biggest export going to be the title deeds to Australia’s farmland?
And then the article quotes one of the players who puts them up for sale and says:
‘… who ever is prepared to offer the best deal will win and if at the present time, that is money coming from overseas, well that’s just the market working and as a market should’
IS this a simplistic view carved out of solid self interest?
WOULD they still maintain this rusted on commitment to ‘the market’ when/if circumstances were different for them?
For example, foreign sales agents were permitted to operate in Australia selling Australian farmland to foreigners, the property owners wanting to sell being aware these foreign agents would be willing to agree to substantially lower commissions
(the local Australian sales agents would be none too happy about that!)
. No doubt many more examples of the ‘market place’ and how it can have other less desired outcomes
As for the FIRB a lot of comment has recently been less than complimentary about its work.
INDEED there are links between this issue and other concerns, namely, that Australia has become a place of choice when it comes to money laundering
‘Australia a Place of Choice for Money Laundering due to lack of Regulation’
LABOR had a policy prior to the May 2019 Election … the Morrison Government having exempted the Real Estate Gatekeepers in October 2018 from the Second Tranche of the AML Legislation
‘Labor to Target Lawyers, Accountants, Real Estate Agents’
ARE we also a market for dirty black money?
Industry weighs in on foreign investment
Mollie Tracey 2 Dec 2019 Agribusiness
Foreign investment makes up 13 per cent of Australian farmland.Aa
DEBATE on foreign investment of Australian farmland is ignited every time an overseas buyer purchases agricultural land, particularly if it is a property of scale or for a substantial price.
But is that criticism warranted?
Industry figures and agribusiness real estate experts claim that an owner of a farming property should have the right to sell for the best price.
There are many cases when there is no local interest, so sellers have no other option than to go through the strenuous process of selling parcels of land separately with the possibility of not selling the entire property and being left with the least productive land.
Whereas offering it to the global market, the property might be purchased by a foreign buyer who will pay a premium.
The most recent statistics of Australian agricultural land with foreign interest, from the government’s Foreign Investment Review Board (FIRB) showed that 13 per cent of the country’s farmland has some level of foreign interest, measuring 52,602 million hectares.
Since 2015, foreign investment has increased only slightly, by about 2pc.
The sale of one WA property, in particular, was met with widespread criticism from the public when it was sold to a foreign buyer in April 2019.
Former grain farmers John and Julie Nicoletti sold their broadacre portfolio of more than 200,000 hectares to Saudi Arabian company Saudi Agricultural and Livestock Investment Company for more than $60 million.
CBRE Agribusiness regional director Danny Thomas brokered the deal and said no expressions of interest from Australian purchasers were made during the sales campaign, except for a few small individual parcels in the first round of offers.
CBRE Agribusiness regional director Danny Thomas.
“I’d encourage people to think about what would happen if they were at the point that they wanted to sell their property, their life’s work and many generations’ work and the only people that could afford that were institutional purchasers who were foreign,” Mr Thomas said.
“So is it fair for someone to be telling them who can and cannot buy their property in a free market for the best value?
“If the best deal is put forward for the work of your life and generations before you, then why shouldn’t you be able to accept that?”
A large portion of the properties that Mr Thomas and CBRE in general handle are on behalf of Australian vendors, but due to their scale and value, tend to not be in the bracket of affordability of most family farmers.
“(Our vendors) are seeking to maximise the sale price of their property and some of the properties that we transact are some tens of millions of dollars and aren’t typically in the mum and dad space, so it tends to be large institutions that are needed to buy those properties and there’s a lack of Australian institutions in the market,” he said.
“So I think having that capital in the market is overwhelmingly positive.
“We don’t determine who buys them, we just put them up for sale and who ever is prepared to offer the best deal will win and if at the present time, that is money coming from overseas, well that’s just the market working and as a market should.”
For a foreign investor to purchase Australian farmland, there is strict criteria overseas investors must adhere to during a period of scrutiny by FIRB.
Most notably, board approval is required where the total value of the foreign buyer’s land assets exceeds $15m.