Over the last few months, I have spoken to representatives from New Zealand, Canada and Australia.

All three countries have now expressed clear policies that restrict the acquisition of agricultural assets by certain categories of investors.

At a minimum, each investment of a major asset is looked at on a case-by-case basis, especially if the investment is made by a government fund – the so-called sovereign wealth funds.

The most important of these from an agricultural point of view is the Chinese and all three countries have at a minimum delayed and in some cases actually banned the sale of major agricultural assets to the Chinese.

Foreign investors

Part of the reason of course is that foreign investors, even private individuals with transparent financial standing, would find it very difficult to buy any kind of agricultural asset in China, though partnerships with local Chinese interests are quite common.

The position in Europe is now becoming much less clear than it used.

After the Chinese bought a German robotic company, the German government has announced quite clearly that it is reviewing how strategic nationally important companies should be safeguarded from ‘foreign’ takeover.

French policy of blocking foreign takeovers

The French have long had a policy of blocking foreign takeover of important domestic companies, but normally, this policy was carried out on the basis of nods, winks and informal understandings rather than a clearly articulated government policy.

With President Macron in power, this is going to become a much clearer government policy and we can expect French and German co-operation in setting out a common approach.

The subject is moving to farmland where, again, rules vary.

Much of South America has brought in restrictions banning foreigners buying farmland, but, over the last few years, several eastern European countries have questioned whether Europe should be as open to non-farmers buying as some countries are.

France already has a restrictive regime around buying farmland.

EU paper on foreign investment

In an answer to the Polish minister for agriculture, Agriculture Commissioner Phil Hogan confirmed the Commission will publish this autumn a paper on foreign investment in farmland and how member states can regulate the market in farmland while staying in compliance with EU law.

When these east European countries joined, there was a temporary ban on non-nationals buying farmland in the country.

Since then, land prices have risen and the transitional period has ended, but the emotion around the issue still exists in some areas.

The Commission clarification will be awaited with interest.

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