Canada buying up Australian ag properties for good reason

Australian farmland is still a good buy — and the Canadians know it, as The Weekly Times points out.

THE spending spree of Canadian pension funds would not surprise astute property watchers.

Despite drought spreading across eastern Australia, and water policies that see our major rivers bulging with water while farmers watch crops and pasture die from a lack of it, Australian farmland is still a good buy.

Even with the revolving door on our Prime Minister’s office, Australia offers a stable political and regulatory system that cuts the sovereign risk for investors.

Land is relatively cheap compared to other developed nations, and the fact irrigation water can be separated from land makes it portable for those entering intensive irrigated sectors such as almonds and olives.

Canada’s big Public Sector Pension Investment Board has shown how keen it is on Aussie land, spending more than $1 billion in recent weeks to more than double its local property portfolio.

It joins other North American funds in making big Australian farmland investments.

It is interesting to note the lack of public and political outrage at the Canadian buy-up, compared to the move by Chinese investors to buy Australian farmland in the past decade.

Uproar over the attempt by an all-Chinese consortium to buy the iconic S Kidman & Co pastoral company in 2015 became a significant political issue, leading to rejection by the Federal Treasurer.

The sale eventually went through with an Australian majority stake.

The Government won’t face such heat to approve the recent Canadian sales.

The real heat should be on why local super funds don’t share the Canadians’ interest in Australian agriculture.