NZ to limit foreigner land acquisition

New Zealand will place new controls on foreign investors acquiring large land parcels to address the growing concerns of foreigners acquiring too much farmland in the country.

New measures to evaluate the merit of overseas investors in land will include a test that will consider whether the country’s “economic interests” are adequately promoted and protected.

“They're designed to reduce our vulnerability to large-scale alienation” of farmland to foreign buyers, said Finance Minister Bill English.

The review of overseas investment in the country comes after HK-based firm Natural Dairy's bid to acquire 16 farms covering approximately 8,100 hectares in the North Island.

New Zealand’s economy is based mainly on agriculture, with dairy products alone accounting for a fifth of the total exports.