ONE of Australia's largest land holders, Macquarie Agricultural Funds Management, says urbanisation is becoming a major threat to the availability of prime rural land.
Australia's population is growing at an annual rate of 2.1 per cent – almost twice the world average of 1.1 per cent – and urbanisation is rapidly eating away at the supply of farming land on city fringes.
According to The Australian Financial Review, Macquarie, which manages about $1 billion in funds spread across 3.2 million hectares of Australian land, has released a white paper noting the effect in other countries.
The paper says that in the United States about 400,000 ha of farmland was lost to urbanisation annually. In China as much as 1 million hectares of farmland were lost every year.
The paper has not estimated the figure for Australia but with the nation's population growing faster than many Asian neighbours, including Indonesia and India, the number is likely to be quite high.