In an article from its quarterly newsletter, Farm Institute Insights, the Australian Farm Institute urged Australian governments to be extremely careful not to make decisions that discourage foreign investment.

The paper was produced by Australian Farm Institute executive director Mick Keogh and senior research officer Adam Tomlinson. It acknowledged that 55 per cent of Australians were opposed to the sale of Australian farm land to foreign investors, compared with only 22 per cent being in favour (the remainder were undecided).

However, the article concluded concerns about Australia’s food security were largely unfounded and it would be helpful to have a factual conversation rather than one based on anecdotal evidence.

“Foreign investment is obviously critically important for the future growth of the national economy and for the agricultural sector, therefore considerable care is needed in proposing changes to current approval processes and regulations,” the report said.

“Scaring off overseas investors with cumbersome regulations would do more harm to the sector than any harm ever caused by a poorly-managed overseas investment.”

The report said Australian voters needed to be reassured about the benefits associated with overseas investment.

It concluded there was a lack of available transparent information about the extent of foreign investment in Australian agriculture which clouded the debate. It recommended the introduction of a register of foreign ownership of Australian farm land.

“Australia has no reliable data available about the extent of overseas ownership of farm land or irrigation water, and the information available about the extent of overseas ownership in the post-farm sectors of the agricultural supply chain is largely anecdotal. This is in stark contrast to almost all other developed nations,” the report said.

Ballarat-based federal Democratic Labour Party Senator John Madigan has been an outspoken critic of allowing foreign investors to buy Australian agricultural land, highlighting the example of Larundel Estate near Elaine, which was bought by a Chinese company in 2011.