Farmers are a little enigmatic.
On one hand, we must be the most optimistic people on earth: we don’t give up easily because a great season could be just around the corner. On the other hand, we’re not typically the type that goes out and buy lots of stuff in the good times: we know another bad season could be just around the corner.
One thing of which you can be certain is that we know how to pull our horns in and refuse to open the cheque book when times look a little shaky. This seems to be just one of those times. The bank tells me that business is “quiet”, dozens of farms are for sale but not selling and one rural financial counsellor noted that she’s seeing more and more depressed farmers.
The market for dairy farms is now so quiet that I can’t tell you how much our own farm is really worth because there’s simply no benchmark. This in itself leads to a lack of confidence and, so, a vicious cycle ensues.
It was with all this in mind that I read Jonathan Dyer’s (@dyerjonathan on Twitter) blog post on foreign ownership of Australian farmland this morning. Referring to the purchase of farmland near his own property by a Qatari corporation, Jonathan remarks:
“Perhaps because we don’t know just how amazing our natural wealth is we aren’t appreciative of it and are happy for it to be sold off. We don’t value it and look after it like we should. If that is the case, if we don’t value what we have and aren’t willing to develop it, then maybe it’s good that others who do value and need quality food production are getting a chance here in Australia.”
I couldn’t agree more. What I am hoping though, is that the interest of foreigners in our natural wealth will encourage Australians to reconsider the way we view our amazing land. If we are to remain one of the world’s leading food bowls, we must have the confidence to grow.
7 thoughts on “Confidence to grow: could foreign ownership be a godsend?”
Nice angle on a very thorny issue. Here’s a question – would we rather sell our Dairy Farms to a foreign agricultural company or to Clive Palmer?
I reckon we have more chance of buying it back in similar condition from the foreign firm than from Clive.
Oooh – great point!
I’m happily an Australian but I don’t have an issue with foreign ownership. We are all homo sapiens, there are good and bad landholders of all nationalities (feel a bit like I am launching into a John Lennon song…)
Every landholder and citizen needs to exist within the laws of the country and it is these laws that need to be considerate of the needs of the immediate local community.
I think there’s a concern that foreign ownership will see profits (and therefore taxes) flow offshore and that, when push comes to shove, and food security becomes critical, Australians will miss out – as of course they should if they don’t own the goose that lays the golden eggs.
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Fair point – but we could just tax them when they invest.
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