No High Level of Foreign Investment in Agriculture Sector

No High Level of Foreign Investment in Agriculture SectorKPMG said in a report that there is no indication of a strong foreign investment in the agriculture segment.

The report says that there are no strict rules for inbound investment and claims that agriculture sector is not being treated equally.

According to the report, the media is focusing more on the ownership of productive agricultural resources, which is encouraged by the public tender process for the sale of the Crafar Farms.

"As a small, developed economy, New Zealand has always required inbound investment to support the standards of living we are now accustomed to, and this holds true even in the current environment," said Ian Proudfoot, KPMG's head of agribusiness.

He also said that event occurred last year have confirmed that we are not prepared to invest on these opportunities from our own resources.

KPMG also said that young people did not invest in the farms because of high land prices and this is something which should be taken into the consideration.

Mr. Proudfoot also said that a domestic investor, who wants to co-invest with a young farmer of New Zealand in an equity partnership, should be able to get overseas investment approval.

According to the Overseas Investment Act 2005, overseas investors are required to obtain approval from the Overseas Investment Office before attaining 25% or more interest in the land.