FOREIGN companies are set to pick up another 320,000ha of cheap Australian land from failed managed investment schemes.
And the MIS mechanism will likely have aided the transfer of 500,000ha into foreign ownership by the end of next year.
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The buy-up has been criticised by maverick Liberal Senator Bill Heffernan, who said the Government was "asleep at the wheel".
"China, India and the Arab states have a policy of acquiring agricultural assets (around the globe)," Senator Heffernan said.
Fair Dinkum Food campaigner Richard Bovill said other countries had "worked out that in the future, ownership of land and control of food will be essential".
But the National Association of Forestry Industries argues MIS should continue, and banking giant Macquarie and rural icon Elders are financing investors to keep the MIS train rolling in the face of a bank boycott.
MIS raked in billions in investment in the past decade as a tax break for investors and helped fund the purchase of 369,000ha between MIS giants Timbercorp and Great Southern alone.
But as MIS companies fall like nine pins, the land is making its way on to the market at heavily reduced prices - and nearly all is set to be bought by overseas interests.
Last year, 100,000ha and 40,000 megalitres of water formerly-owned by Timbercorp was sold to US and Singapore interests for fire-sale prices.
Now some 269,000ha of land formerly-owned by Great Southern Plantations is on the market and industry sources say 50,000ha owned by cash-strapped Elders will be sold if a suitable buyer is found.
Other forestry-based MIS companies Forest Enterprises Australia (72,000ha), the Rewards Group and its landlord the Ark Fund (11,000ha) and Environinvest (manager of 150,000ha) have also collapsed and Willmott Forests (manager of 53,000ha) appears to be in serious financial trouble.
A forestry industry figure said there was no Australian company in the running for the large parcels of land.
Sustainable Agricultural Communities Australia director Rob Belcher said the transfer of land from family businesses to corporate entities and then overseas interests ``guts'' him.
"This is what happens when governments seek to corporatise Australia's privately held natural resources," Mr Belcher said.
The Weekly Times understands banking giant Macquarie Group has made offers far above market value on at least 10,000ha of prime Western District grazing land.
The purchase is believed to be for a blue-gum MIS, with an offer to pay $10,208 per one-hectare plantation lot.
Finance from Macquarie Group comes at an indicative interest rate of 10.4 per cent.
Elders could not find a bank to finance its 2010 MIS but will itself lend to preferred investors.
Agriculture Minister Tony Burke said the "best thing for agriculture is if investment decisions are driven by the value of the future harvest, not by the value of the tax incentive".
NAFI chief Allan Hansard said he supported MIS and "the Government's approach to protecting investors".
No response had been received from the Foreign Investment Review Board at the time of going to print.
Meanwhile, Cubbie Station looks set to become 53 per cent owned by an Arab businessman and CSR has sold its sugar and energy business to an Asian company for $1.75 billion.
