Foreign investment into Australian agriculture has been a significant component from first settlement.  The Foreign Investment Review Board (FIRB) is a non-statutory body established in 1976 to advise the Treasurer and the Government on Australia’s Foreign Investment Policy. FIRB examine proposed investments in Australia to make recommendations to the Treasurer on acquisitions subject to the Foreign Acquisitions and Takeovers Act 1975 (the Act). They provide guidance, monitor and ensure compliance to Australia’s foreign investment policy and the Act.

There is significant focus by North American Pension Funds on large agribusiness investments in Australia.  They have identified the excellent long-term future of clean, green products being exported worldwide.  We expect that trend will continue for pension funds, corporate investors, companies and individuals, particularly with the emphasis placed on efficient food production and supply chains in recent times.

In agriculture there are two sectors which have varied regulation under the Act, these are:

Agribusiness

Proposed direct interests in an agribusiness generally require approval where the value of the investment is more than $57 million, with an exemption applying to investors from Australia’s trade agreement partners and a $0 threshold applying to Foreign Government investors.

Agricultural Land

Proposed investments in agricultural land generally require approval where the cumulative value of a foreign person’s agricultural land holdings exceeds $15 million, with exceptions applying to investors from Australia’s trade agreement partners and a $0 threshold applying to Foreign Government investors.

Zero monetary screening thresholds for all

From 29 March 2020, proposed foreign investments into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 (the Act) will require approval, regardless of value or the nature of the foreign investor. This temporary change will be achieved by reducing the monetary screening thresholds to $0 for all foreign investments under the Act.

There are already a range of proposed acquisitions that are subject to $0 thresholds under existing rules, for example all acquisitions by foreign government investors, private acquisitions in Australian media businesses, residential land proposals, mining and production tenements, and vacant commercial land proposals.