There is at least $4 billion in a pool of such funds, according to the report. More than $1 billion has already been spent over the past few years.
Good rains and historically high commodity prices have improved Australian farming conditions recently.
Commodities entrepreneur Jim Rogers was recently in Australia to launch a rural land vehicle, Laguna Bay Pastoral Company, which has an ultimate pipeline of $600 million in farming projects. PrimeAg also recently convinced the Future Fund to invest $600 million on a rural land vehicle.
SAR will be managed by Customised Farm Management, directed by Andrew Parkes, who has managed the Australian agricultural investments of the US-based Teachers Insurance and Annuity Association and College Retirement Fund.
David Montgomery, a former chair of the Australian Cotton Industry Council, is the chairman of the fund. Mr Montgomery’s uncle Hugo is in charge of fund-raising for the vehicle. Huge previously worked at Merrill Lynch and Kleinwort Benson.