Agri Investor Australia Forum reveals high prospects for agribusiness

Australia's agricultural sector isn't just one of the major backbones of the nation's economy - it's also a valuable opportunity for domestic and international investors. With the low Aussie dollar (AUD) making export transactions and land prices favourable for Australia, the farming sector has gotten the attention of fund managers from around the world.

That was one of the key messages at this year's inaugural Agri Investor Australia Forum, which took place on June 11. At the event, investors and asset managers came together to discuss opportunities for investments in Australia, along with strategies to work with farm owners and optimise returns.

The takeaway for Australian farm owners and operators? There's a good chance that additional funds will come into the sector, which could help fuel additional operational improvements and efforts aimed at boosting productivity. Of course, fund managers will be looking to minimise risk in their investments, which means farmers hoping to attract additional capital should ensure they can show measures for improving farm safety and protecting their crops, stock and machinery against contingencies.

That said, there are a number of factors that make Australian agribusiness in particular an attractive option, compared to similar businesses in other regions. Reporting on the forum, the Australian Financial Review (AFR) noted that speakers highlighted the country's proximity to Asia - and its hungry markets - along with the low AUD.

"[Australia is favoured] because of its strong rule of law, strong systems in place around foreign ownership and because it had the infrastructure to move produce from farm to port," John Corbett, director of Hassad Australia, explained during a panel discussion, according to the AFR.

"You know you will get a 4 to 5 per cent yield and 4 to 5 per cent capital growth per year in Australia. Those returns are quite reasonable and realistic. That's very important for others investors coming in," he said.

With greater funds coming in to support Australia's agribusiness, there could be good times ahead for the sector, especially with rising global demand for meat, wheat and other core products.