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Farmers’ perceptions of foreign investment in Western Australian broadacre agriculture

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  • Stewart, Fraser
  • Kragt, Marit
  • Gibson, Fiona

Abstract

Foreign investment can provide a flow of capital into Australian agriculture and has played an important role meeting the shortfalls in domestic savings throughout Australia’s history. Despite the political and media attention on foreign investment in agriculture, there is little knowledge about stakeholders’ perceptions of foreign investment in their community. This study assesses the opinions of farmers about foreign investment in the Wheatbelt. We investigate the economic, social and environmental opportunities and challenges associated with foreign investment. Interviews with agricultural experts identified three main operating structures of foreign investment: own-operate, own-lease and own-sharefarm. Semi-structured interviews with farmers in the WA Wheatbelt revealed that farmers generally have positive attitudes towards foreign investment, although there were clear advantages and disadvantages associated with the different operating structures. Overall, foreign investment was found to offer opportunities for capital injection, natural resource management, employment and community support in the Wheatbelt. This study provides evidence that, contrary to much speculation in the media, foreign investment is not having a detrimental effect on farmers and rural communities in the study locations.

Suggested Citation

  • Stewart, Fraser & Kragt, Marit & Gibson, Fiona, 2015. "Farmers’ perceptions of foreign investment in Western Australian broadacre agriculture," Working Papers 198540, University of Western Australia, School of Agricultural and Resource Economics.
    • Handle: RePEc:ags:uwauwp:198540
    DOI: 10.22004/ag.econ.198540
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    References listed on IDEAS

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    1. Derek Byerlee & Klaus Deininger, 2013. "Growing Resource Scarcity and Global Farmland Investment," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 13-34, June.
    2. Productivity Commission, 2005. "Trends in Australian Agriculture," Research Papers 0502, Productivity Commission, Government of Australia.
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    Cited by:

    1. Johanna Jauernig & Stephan Brosig & Silke Hüttel, 2023. "Profession and residency matter: Farmers' preferences for farmland price regulation in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 816-834, September.

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