Issue Date:  -  Thursday, 2 March 2000

Warning on farm sales scheme

The Ministry of Fair Trading today warned farmers to be cautious in relation to a marketing scheme being offered to wheat belt farmers wanting to sell up.

Commissioner for Fair Trading Patrick Walker said the Ministry held concerns about the scheme, which seeks farmers to contribute to a prospectus, with a view to attracting buyers for their properties.

Under the scheme, farmers each contribute up to $6000 to the preparation of a prospectus, with the promoters or their agents receiving a 5% commission upon sale. If desired, the farmers can lease back their original property.

Mr Walker said farmers keen to sell up still needed to closely examine the credentials, skills and experience of any people they were dealing with.

"In this case, part of the marketing pitch is that the properties are attractive to prospective Chinese purchasers because their children will then have a right to an education in Australia," Mr Walker said.

"The fact remains that there are significant and complex restrictions that apply to business immigrants to Australia and these need to be clarified in each individual case."

In addition to its own investigations, Fair Trading had contacted both the federal immigration authorities and the Foreign Investment Review Board.

"Ministry staff have spoken this week with a number of central wheat belt farmers who have been approached by salespeople associated with this scheme," Mr Walker said.

"If approached, farmers should carry out their own checks or speak with their farm advisers and lawyers if necessary, before signing up for any sales scheme," he said.

"Some of these properties are worth more than $2m yet the owners have been told they can achieve much higher sales prices, which concerns me," Mr Walker said.

Farm-owners also need to be aware that people in WA negotiating property sales needed to be licensed real estate agents or representatives.

Farmers can obtain more information from Fair Trading’s Mike Johnson on (08) 9282 0732.

Media Contact:
Neil Stanbury
(08) 9282 0613