Foreign investment in Australian agribusiness: Turning capital into long-term value

Foreign investors are increasingly looking to Australia’s agribusiness sector, attracted by a compelling mix of scale, stability, and sustainability. Supported by strong demand for high-quality food products, proximity to key export markets, and a strong regulatory framework, the sector presents a unique opportunity for long-term investment and partnership with Australian operators.

A sector built for growth

Australian agribusiness spans a diverse range of commodities, from beef and grains to horticulture and wine, supported by advanced production systems and resilient supply chains. Investors are drawn not only to the sector’s growth potential, but also its focus on innovation, alignment with Environmental, Social and Governance (ESG) priorities, and its role in global food security.

Recent developments have highlighted the sector’s openness to foreign capital, with strategic partnerships between Australian farming businesses and global investors providing the capital needed to unlock new opportunities. These collaborations strengthen high‑performing agricultural enterprises, support employment growth and contribute to the long‑term sustainability of regional communities.

Foreign investment is also delivering meaningful social outcomes. Partnerships such as those between Australian agribusinesses and Canada’s Public Sector Pension (PSP) Investments, which funds Indigenous education programs through the Clontarf and Stars Foundations, demonstrate how global capital can deliver both commercial returns and lasting community benefits.

The capital provided by foreign investors is assisting the achievement of National Farmers' Federation (NFF) goal of an Australian agricultural industry being worth $100 billion by 2030. Recent forecasts indicate the sector will well exceed this target, with projections showing it could reach a record $101.6 billion this financial year.

Foreign investors are generally required to seek Foreign Investment Review Board (FIRB) approval when acquiring Australian agricultural land if their total land holdings, including the proposed purchased, exceeds $15 million. 

Opportunities across the value chain

Foreign investors are engaging with Australian agribusiness beyond traditional farmland acquisitions. Emerging areas of interest include:

• Agribusinesses increasingly partnering with renewable energy developers to host solar and wind infrastructure on farmland, creating dual-income opportunities
• Investors supporting sustainability and climate initiatives that enhance transparency and climate resilience, including education programs and ESG disclosures
• Family-owned enterprises seeking capital and strategic partners to support succession planning, generational transitions and scale operations.

These trends reflect a broader shift towards value-added investment, where capital is deployed not just for ownership, but for business transformation.

Cost considerations and strategic alignment

Australia’s foreign investment framework is designed to balance national interest with economic growth. Investors must be aware of approval thresholds, registration requirements for agricultural land and water entitlements, and conditions related to national security land. Notably, investors from Chile, New Zealand, Thailand and the United States benefit from higher monetary thresholds before approval requirements are triggered, making Australia particularly attractive for investors from these countries.

While the sector offers significant upside, cost considerations remain. Sponsorships, advisory fees, and transaction complexity can discourage some investors. However, targeted engagement, such as partnering with platforms like Global Ag Investing, can streamline access and reduce barriers. These platforms provide exposure to agribusiness opportunities without the constraints of traditional private‑equity structures, offering a practical entry point for foreign capital.

Importantly, foreign investment in Australian agribusiness is not just about capital, it also enables knowledge transfer in both directions, helping to improve productivity and returns for both local enterprises and international investors.

How BDO can help

BDO’s food & agribusiness team recognises the significant investment required to support the continued growth of Australia’s food and agribusiness sector. We support foreign investors and agribusinesses with tailored advice across transactions, regulatory compliance, ESG strategy and succession planning. Our team combines deep sector knowledge with practical insights to help unlock long-term value. Contact us today to explore how we can support your investment journey.