US farming investors look to West Australia for land purchases
Australian Broadcasting Corporation | 25 November 2013
North Dakota consultant Mike Kruger has been in Western Australia, examining opportunities for American interests to invest in WA farmland.
US farming investors look to WA for land purchases
(Click here for audio interview)
An American grain consultant says there's a lot of interest from the United States farming sector in investing in West Australian agriculture.
WA has seen substantial foreign interest in its agricultural assets in recent months, primarily from China and the Middle East.
But North Dakota consultant Mike Kruger has been in Western Australia, examining opportunities for American interests to invest in WA farmland.
He says America is looking for opportunities to invest in stable agricultural assets.
"Farm prices in the US have gone through the roof due to good crops, high grain prices, low interest rates, good crop insurance programs which have all led to big net farm profits."
Mike Kruger says that farmers and agricultural investors are looking to purchasing or leasing land in countries such as Australia now that the Brazilian land market has run its course.
Canada does not allow corporate land ownership and many US states have differing rules and regulations.
He suggests that WA farm prices have not escalated, as in other countries, due to poor seasons combined with a lack of government and insurance support, and land prices in Australia are appealing for investment outside of the US.
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