A recent trend has been investment by overseas investors with a pre-requisite for a 5-6% return on capital from the leasing of the property to local farmers. Interest to this investment philosophy has come from India, China and Maylasia.
In more recent times there has been a trend develop where investors are joining up with good local farmers in a sharefarming arrangement which facilitates risk minimisation for both parties.
The most recent agreements have been focused on both cropping and cattle operations.
The cropping agreement has enabled local farmers to expand their existing semi viable operations with little downside risk with the investor providing the land, fertiliser, seed and chemical and the local farmer supplying machinery, labour and in turn sharing the profits.
The cattle arrangements are similar with the investor supplying land and buying and transporting the cattle with the local stockman being responsible for pasture management including fertiliser and also the animal husbandry requirements with profits again shared.