Family farms come a cropper in new land of the giants
American, Canadian, Arabian and Swiss interests are buying up multiple properties in the area and the handful of Australian family farms that remain want the federal government to intervene.
Farmer Peter Morton and his sons Gregory and Brad are the forgotten voice in the debate about foreign ownership, which is becoming louder since American Archer Daniels Midland's $3.4 billion bid for Australia's biggest agribusiness, GrainCorp.
The Nationals oppose the sale, but Prime Minister Tony Abbott has made it clear he wants more foreign investment. Allowing the takeover to proceed will be one of the first decisions for the Treasurer, Joe Hockey.
Even if control goes offshore, the Coalition is expected to go ahead with its plan for a national register of foreign farmland, while also reducing the threshold so that deals worth from $15 million will need government approval.
American-based Cargill owns GrainCorp's main rival, AWB.
Foreigners are buying up farms and dictating terms of trade with no regard for individuals, Mr Morton said.
Their quest for more land had forced up the price around Stockinbingal to a point where many family farmers couldn't afford to buy out neighbours when they retired.
Across the way, 13 consecutive properties were brought in one swoop.
Mr Morton recounts a buyer announcing last year at Temora he had $15 million to spend if any one was interested.
The Mortons' neighbour John Harper is bewildered that foreigners see more value in GrainCorp than Australians.
"That's why we have all this angst. There's all the great characteristics of being an Aussie farmer in rural Australia, but there is no incentive, no security."
Frequently Asked Questions about this Article…
The article reports that Stockinbingal, a premier grain district west of Canberra, is being bought up by foreign interests from the US, Canada, the Arabian region and Switzerland. Local family farmers like Peter Morton and his sons say rising demand from overseas buyers has pushed land prices so high that many family farms can’t afford to buy neighbouring properties when owners retire, leaving only a handful of Australian family farms remaining in the area.
Archer Daniels Midland’s reported $3.4 billion bid for GrainCorp has intensified public debate about foreign ownership because it’s a high‑profile example of a major foreign takeover attempt in Australia’s agricultural sector. The article says the bid has made concerns about overseas control of key agribusinesses louder among farmers and politicians.
The Coalition government is expected to create a national register of foreign farmland and lower the threshold for mandatory government approval of foreign deals to transactions worth from $15 million. These measures are mentioned in the article as part of the response to growing foreign investment in farmland.
The article names Archer Daniels Midland (ADM) as the bidder for GrainCorp and notes that American-based Cargill owns GrainCorp’s main rival, AWB. It also mentions buyers from American, Canadian, Arabian and Swiss interests buying properties in the Stockinbingal area.
According to the farmers quoted in the article, foreign buyers are consolidating multiple properties (one example is 13 consecutive properties bought in one swoop) and announcing significant purchasing power (a buyer in Temora said he had $15 million to spend). This increased buying power has reportedly driven up land prices around Stockinbingal, making it unaffordable for many local family farmers to expand by buying neighbouring land.
Farmers such as Peter Morton and neighbour John Harper express anxiety and a sense of being overlooked. They say foreign ownership changes trade terms, raises land prices, and leaves Australian farmers with 'no incentive, no security'—a phrase used in the article to capture local frustration that farming traditions and livelihoods may be undermined by overseas investment.
The article says The Nationals oppose the sale of GrainCorp to foreign buyers, while Prime Minister Tony Abbott has signalled he wants more foreign investment. It also notes that Treasurer Joe Hockey would be responsible for making decisions on allowing such takeovers to proceed.
The article highlights that rising foreign interest and high‑value takeover bids are reshaping ownership in Australia’s agricultural sector. For everyday investors, the key points are that large foreign bids (like ADM’s for GrainCorp), potential regulatory changes (a national register and a $15 million approval threshold), and consolidation by overseas buyers are material factors that may affect valuations, ownership structures and market dynamics in Australian agribusiness.
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