Australia

Controversial foreign investment in Australian farming land is here to stay and is vitally important to the future of food security, the federal government says.

A landmark agreement in the Kimberley is close to being sealed in which Australia's largest cattle corporation will lease vast tracts of land from their Aboriginal owners in return for providing jobs, training and a share of profits in the cattle business.

The head of a $7 billion Chinese mining project in the Pilbara says Australia has a golden opportunity to meet China's soaring demand for high-quality food and he would prefer to invest in agriculture rather than iron ore.

Outspoken entrepreneur and aviator Dick Smith has bought $1 million worth of shares in Australian Agricultural Co (AAco) - Australia's second-largest landholder - because he doesn't want to sound hypocritical when he campaigns against foreign ownership of farms.

President of New South Wales Farmers Fiona Simson doesn't believe the community and farmers are opposed to foreign investment in Australian agricultural land as long as it's adding to their community, industry and economy. The question is having the tools to make sure that this is what's happening.

While Australians fret about how much farmland is being snapped up by foreign investors, our New Zealand cousins have adopted a no-nonsense policy on rural land sales to off-shore investors.

Australia's federal government has set up a working group to assist with the development of a Commonwealth register of foreign owned agricultural land.

Macquarie Group Limited looks to be moving in on more agricultural investments with the launch of a new fund to target dairy farms in Australia.

The Gillard Government (Australia) has announced a working group to consult on the development of a Commonwealth foreign ownership register for agricultural land.

Only a fool would believe Australia's agricultural development could be funded without foreign investment from sovereign wealth funds, according to Trade Minister Craig Emerson.

As Europe's debt crisis rattles global equity market confidence farming is being increasingly championed by many as a sound, long-term bet for investors needing a safe haven for their money - particularly superannuation funds.

Trading as Kimberley Agricultural Investments, it's understood that a Chinese investment group is interested in developing a major sugar industry in the region, as well as a meatworks capable of processing 500,000 head of cattle a year.