The investors are looking to secure a large portfolio of crop interests, wheat farms and processing facilities across the country that will not be selling on the open market.

Their plans follow a recent announcement that one of China’s largest beef producers, Chongqing Hondo Agricultural Group, is looking to buy up to $100 million worth of Australian cattle stations in the next year.

Raine and Horne Rural co-principal Andrew Tout said the bulk of spending is from investors in China, Europe and the United States, who view Australian agriculture as an industry with scope for growth.

“Some of the world’s most productive land is in Australia, so overseas investors view it as a safe investment,” Mr Tout said, adding that many farmers, particularly in outback Queensland, are in desperate need of capital following years of drought.

National Farmers Federation president Brent Finlay welcomed the move, saying foreign investors have spotted an opportunity many domestic investors have shunned.

“Agriculture is capital intensive and it’s a long-term investment, but many domestic investors are too impatient to wait out low returns and that’s opened the way for foreign investors,” he said.

But others like federal MP Bob Katter are less impressed by the development.

“This wouldn’t be happening if farmers weren’t struggling,” he said, adding that having too many farms in foreign hands was a risky proposition for the country’s future food security.

Originally published as Foreign investors to spend big on Aussie farms