Buying blitz as Queensland’s foreign-owned farms revealed

These are the top five countries buying up Australian farms, as those owned by foreign entities in Queensland are revealed.

Canada, the US, the Netherlands and the Bahamas are turning up the heat on Australian rural property prices as part of a multibillion-dollar buying blitz of our farms.

An investigation has found the five biggest investors in Australian agriculture – with combined land and water assets valued at almost $12 billion – are all backed directly or indirectly by foreign capital.

Leading the buying charge is PSP Investments – the pension fund for the famed Royal Canadian Mounted Police – which has spent $4.5 billion on Australian agriculture assets in recent years.

This includes more than $500 million on one of the nation’s biggest cotton growing and production businesses, the NSW-based Auscott Limited, last month.

Other major investors include Macquarie Group’s three agriculture-specific funds – whose backers include Dutch pension fund Stichting Pensioenfonds ABP – which own more than $3 billion of land and water assets, US teacher superannuation fund TIAA-CREF ($1.8 billion-plus in investments), the ASX-listed Rural Funds Group ($1.1 billion) and US-based Hancock Agricultural Investment Group ($1 billion-plus).

Members of the Royal Canadian Mounted Police (RCMP) Emergency Response Team. The pension fund for the RCMP has spent $4.5bn on Australian agriculture assets in recent years. Picture: Angus Mordant

According to latest Federal Government data, about 53 million hectares of farmland was owned or partly owned by foreigners in 2019-20 – an increase of 900,000 hectares on the previous year – accounting for 13.8 per cent of Australia’s farming area.

Canada-based PSP agriculture boss Mark Drouin said Australia was considered attractive to offshore buyers due to its prevailing rule of law, open approach to foreign investment and offering of scale for a wide range of agriculture pursuits – adding that strong demand was unlikely to wane anytime soon.

“Australia has been pretty pivotal (for us) since the beginning,” Mr Drouin said. “We are very much long-term investors. In the next 10 years or so … we’ve got to double again our deployment. If you think of the past two or three years we’ve invested somewhere between A$2.14 billion and A$3.22 billion on average a year – a large part of that has been in Australia – and I don’t see that slowing down anytime soon.”

Neumayer Valley Station in Normanton, owned by Swiss Australian Farm Holding Pty Ltd (Switzerland). Picture: Supplied

CBRE Agribusiness managing director David Goodfellow said another reason foreigners were attracted to Australia was its relatively affordable farmland compared to most of the rest of the world.

A recent Rural Bank report found the average price of Australian farmland last year was $5907 a hectare. This compares to A$10,125 a hectare in the US, $38,825 a hectare in Wales and $48,880 a hectare in southwest England.

According to the Federal Government data, China the biggest offshore holder of Australian farmland in 2019-20 with 9.2 million hectares – 8.4 million hectares of which was leased – followed by the UK (7.3 million hectares), the Netherlands (2.8 million hectares), the US (2.75 million hectares), Canada (2.61 million hectares) and the Bahamas (2.2 million hectares).

But Mr Goodfellow said after a wave of investment that started in about 2013, thanks to grants and subsidised loans from its government, China was now reducing its investments in Australia as it turned its attention to farmland in Brazil and Argentina.

Agriculture Minister David Littleproud said the government welcomed foreign investment as long as it was in the “national interest”. Picture: NCA NewsWire / Gary Ramage

Chinese-owned Van Dairy Group this week sold 11 of its dairy farms in northwest Tasmania for $62.5 million and billionaire Gina Rinehart is also understood to be selling several cattle stations in Northern Australia to raise capital to buy out her Chinese partner in the famed S Kidman and Co pastoral business, which they bought in 2016.

“Investment goes in waves – there’s been countless examples of this over the years,” he said.

Agriculture Minister David Littleproud said the government welcomed foreign investment as long as it was in the “national interest” and offshore companies paid “their fair share of tax”.

“We (need to) understand who is coming in, what the concentration limits are, particularly with industries and geographical areas,” Mr Littleproud said.

In 2015, the government famously knocked back a $350 million Chinese-only bid for S Kidman and Co on national interest grounds. Since that time, the likes of PSP have spent billions on farmland and water assets. Despite this, Mr Littleproud said the government was consistent on who it let buy Australian farmland, adding that issues such national security and food security needed to be taken into consideration.

“You’ve only got to look when Covid started, people were fighting over the last morsel of meat or the last toilet roll in Woollies,” he said. “The insanity of that goes to show that, as human beings, food security is at the fore of our thinking.”

BIG QLD FARMS OWNED FULLY OR PARTIALLY BY FOREIGN INTERESTS

ALPHA

- Alpha Station – 21,300 hectares. PSP Investments (Canada)

AUGATHELLA

- Oakwood – 28,300 hectares. PSP Investments (Canada)

AYR

- Delta – 457 hectares. MH Premium Farms (United Kingdom)

BILOELA

- Allawah – 3069 hectares. Consolidated Pastoral Company (United Kingdom)

BIRDSVILLE

- Durrie Station – 660,000 hectares. Outback Beef (China)

- Glengyle Station – 550,000 hectares. Outback Beef (China)

BLACKALL

- Malvern Hills Station – 50,070 hectares. Macquarie Agriculture (Various)

BUNDABERG

- Bonmac – 27 hectares. Rural Funds Group (ASX-listed)

- Bundaberg Sugar – 9000 hectares. Finasucre (Belgium)

- Elliott River macadamia orchard. PSP Investments (Canada)

- Macadamia development – 500 hectares. Rural Funds Group (ASX-listed)

- Macadamia farms – 1018 hectares. Finasucre (Belgium)

- Swan Ridge and Moore Park – 234 hectares. Rural Funds Group (ASX-listed)

- Welcome Creek macadamia orchard. PSP Investments (Canada)

BURKETOWN

- Armraynald Station – 214,090 hectares. Macquarie Agriculture (Various)

CAIRNS

- Wrotham Park Station – 596,800 hectares. Consolidated Pastoral Company (United Kingdom)

CAMOOWEAL

- Avon and Austral Downs – 863,100 hectares. Australian Agricultural Company (ASX-listed)

- Rocklands – 677,964 hectares. Macquarie Agriculture (Various)

CARPENTARIA

- Mutton Hole – 140,300 hectares. Rural Funds Group (ASX-listed)

CECIL PLAINS

- 3967 hectares. TIAA-CREF (United States)

CHARLEVILLE

- Oak Park – 78,000 hectares. Australia Aulong Auniu Wang Group (China)

CHARTERS TOWERS

- Kangerong – 22,400 hectares. PSP Investments (Canada)

- Mount Cooper – 87,000 hectares. PSP Investments (Canada)

- Natal Downs, Longston and Narellan – 390,600 hectares. Rural Funds Group (ASX-listed)

CHILDERS

- Avocado orchards – 840 hectares. PSP Investments (Canada)

CLONCURRY

- Canobie Station – 492,100 hectares. Australia Aulong Auniu Wang Group (China)

- Clonagh Station – 214,270 hectares. Macquarie Agriculture (Various)

CONDAMINE

- Moira Runda – 12,510 hectares. Macquarie Agriculture (Various)

- 2761 hectares. TIAA-CREF (United States)

CROYDON

- Oakland Park – 85,500 hectares. Rural Funds Group (ASX-listed)

DALBY

- 785 hectares. TIAA-CREF (United States)

- 3797 hectares. TIAA-CREF (United States)

DALVEEN

- Strathgarve and Palgrove – 4050 hectares. Palgrove Holdings Pty Ltd (New Zealand)

DARLING DOWNS

- 702 hectares. TIAA-CREF (United States)

DIRRANBANDI

- Cubbie Station – 93,000 hectares. Shandong Ruyi (China)-Macquarie Agriculture (Various)

- Kia Ora and Clyde – 36,422 hectares. Fiera Comox (Canada)

DRILLHAM

- Killaloo – 2025 hectares. Palgrove Holdings Pty Ltd (New Zealand)

EMERALD

- Codenwarra West – 3443 hectares. Olam International (Singapore)

- Fork Lagoon and Jaydena – 21,000 hectares. PSP Investments (Canada)

- Goonoo Farm. Australian Agricultural Company (ASX-listed)

- Nogoa River aggregation – 5000 hectares. Cowal Agriculture (United States)

- Rhodesia – 2025 hectares. Palgrove Holdings Pty Ltd (New Zealand)

ERROMANGA

- Durham Downs Station – 891,000 hectares. Outback Beef (China)

- Woomanooka Outstation. Outback Beef (China)

GIRU

- Haughton – 772 hectares. MH Premium Farms (United Kingdom)

GLENROY

- Comanche – 7600 hectares. Rural Funds Group (ASX-listed)

GOONDIWINDI

- Undabri – 11,935 hectares. Orient Agriculture (China)

- 6315 hectares. TIAA-CREF (United States)

GORDONVALE

- MSF Far North aggregation – 8000 hectares. Mitr Phol Group (Thailand)

ISISFORD

- Isis Downs Station – 246,057 hectares. Consolidated Pastoral Company (United Kingdom)

JANDOWAE

- Encliffe and Glendaloch – 1250 hectares. Proterra Investment Partners (United States)

JONDARYAN

- 4034 hectares. TIAA-CREF (United States)

JULIA CREEK

- Carrum Station – 50,613 hectares. Australian Agricultural Company (ASX-listed)

- Coolreagh – 25,000 hectares. PSP Investments (Canada)

- Dalgonny Station – 128,000 hectares. Australian Agricultural Company (ASX-listed)

- Yorkshire – 25,000 hectares. PSP Investments (Canada)

MACKAY

- Hylton Park – 3244 hectares. Proterra Investment Partners (United States)

- Marwood Farm. Proterra Investment Partners (United States)

MACLISTER

- Calmyle – 996 hectares. Proterra Investment Partners (United States)

MARYBOROUGH

- Maryborough aggregation – 4140 hectares. Rural Funds Group (ASX-listed)

- MSF Maryborough aggregation – 5500 hectares. Mitr Phol Group (Thailand)

- MSF Mary Harbour aggregation - 174 hectares. Mitr Phol Group (Thailand)

- Oakleigh – 19,200 hectares. PSP Investments (Canada)

MAYNELAND

- Mayneland – 2942 hectares. Rural Funds Group (ASX-listed)

MOURA

- Harcourt – 1587 hectares. BC Water Pty Ltd Hong Kong

- Pegunny Aggregation – 26,100 hectares. PSP Investments (Canada)

MT ISA

- Gregory Downs Station – 266,425 hectares. Macquarie Agriculture (Various)

- Headingly Station – 1,003,200 hectares. Australian Agricultural Company (ASX-listed)

MUNGINDI

- 3053 hectares. TIAA-CREF (United States)

NORMANTON

- Neumayer Valley Station – 143,000 hectares. Swiss Australian Farm Holding Pty Ltd (Switzerland)

- Wondoola Station – 252,500 hectares. Australian Agricultural Company (ASX-listed)

ROCKHAMPTON

- Cerebus – 8280 hectares. Rural Funds Group (ASX-listed)

- Wattlebank, Homehill and Yarra – 7,419 hectares. Rural Funds Group (ASX-listed)

ROLLESTON

- Lynora Downs – 4880 hectares. Rural Funds Group (ASX-listed)

- Rewan Station – 17,500 hectares. Rural Funds Group (ASX-listed)

ROMA

- Pony Hills Aggregation – 58,700 hectares. PSP Investments (Canada)

- Rockybank Station – 14,600 hectares. Outback Beef (China)

- Woodlands – 31,000 hectares. Fucheng Group (China)

SPRINGSURE

- Glentana Station – Australian Agricultural Company (ASX-listed)

- 4080 hectares. (United States)

ST GEORGE

- Hollymount Station and Mt Driven – 50,000 hectares. Hailiang Group (China)

SURAT

- Wylarah Station – 40,468 hectares. Australian Agricultural Company (ASX-listed)

TALWOOD

- Boolarwell – 7706 hectares. MH Premium Farms (United Kingdom)

VIA TIBOOBURRA NSW

- Naryilco Station – 751,000 hectares. Outback Beef (China)

TOOBEAH

- Norman Farming aggregation – 18,000 hectares. Hancock Agricultural Investment Group (United States)

TOOWOOMBA

- Beef City feedlot – 760 hectares. Rural Funds Group (ASX-listed)

WANDOAN

- Glencore Coal aggregation – 315,000 hectares. Glencore (Switzerland)

WINDORAH

- Morney Plains Station – 623,000 hectares. Outback Beef (China) South Galway Station - 487,600 hectares. Australian Agricultural Company (ASX-listed)

- Tanbar Station – 1,021,904 hectares. Macquarie Agriculture (Various)

WINTON

- Davenport Downs – 1,510,000 hectares. Macquarie Agriculture (Various)

Originally published as Buying blitz as Queensland’s foreign-owned farms revealed