What are concerns about foreign investment in agriculture

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Reference no: EM131197801

MBA lnternational Business Law Assignment- OtA/ FATA

This assignment is due on 21January 20t5. The word length is 2,500 to 3,000 words.

Students should read the course module instructions for information on the rules relating to assignments.

The rules relating to plagiarism must be strictly complied with. The assignments will be checked by the turnitin.com software programme which detects plagiarism. Full referencing according to the APA standard is required The assignment involves consideration of the domestic statutes of two neighboring countries - Australia and New Zealand and their attitude to foreigners purchasing farmland in those countries'

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ln New Zealand the purchase of rural land is governed by the Overseas lnvestment Act; in Australia the statute is the Foreign Acquisitions and Takeovers Act. You can find both statutes on the internet and you will need to review them. The legislation of both countries sets a monetary threshold which triggers the requirement for consent. Accurate statistics on the amount of farmland owned by foreigners is hard to come by. The statistics are also blurred by joint ventures, multiple parties and leasehold interests. ln New Zealand land in foreign hands is probably around 10% and growing. ln Australia no reliable data are available.

Of course a number of countries do not permit foreigners to own land.

All questions are compulsory. Written fluency and correct referencing.

1. What are the concerns about foreign investment in agriculture and are those concerns in your view valid. What stance has the Food and Agricultural Organisation of the United Nations taken on the issue.

2. Analyse the differences between the New Zealand and Australian statutes including the process for securing consent for foreigners to purchase farmland in the two countries.

3. Discuss two examples (one from New Zealand and one from Australia) which have been controversial purchases or attempted purchases of agricultural land.

4. You are asked to advise a US company which wants to purchase a farm station in the Central North lsland. Consent is required under the Overseas lnvestment Act because farm land is involved. The property is L4,000 hectares and is a sheep and beef breeding and finishing and dairy support station. lt has three airstrips, a lake, a recreational hunting blocl$ 22 houses which accommodate the families of 20 permanent sta.ff;a staff recreation,,centre.;.a'sehoqli,9l km,of wellrforrned roads; six, cattle yards, three woolsheds and other farm buildings. The rateable value of the property is NZD70 million.

What arguments would you use to meet the "benefit to New Zealand" test in section 17 of theAct. You mayhave1omake fr-lrther assurnptions"of fact.

Reference no: EM131197801

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