FDI key for ag: Hassad

And judging by the feedback from regional communities dealing with the foreign investors, he might be on to something.

Hassad Australia, whose parent company Hassad Foods is owned by the Qatar Government, owns properties in Bindi Bindi, Jerramungup and Esperance in WA, as well as eight others on the east coast.

Mr McKeon said that in some cases Hassad was spending up to 85 per cent of its expenditure within 100km of its properties.

"That includes contractors, seed, fertiliser, and machinery," Mr McKeon said. "It's all sourced from local distribution points and local communities."

Feedback from the Shire of Jerramungup and rural service providers in Moora indicate that his comments were spot on.

Hassad acquired 8483ha in the region in 2012, with the aim of establishing a grain production hub.

Moora Landmark spokesperson Jason Greay said Hassad had definitely been supporting local branches in the region.

Mr Greay said he was impressed that Hassad was not doing what other corporates did and source everything from Perth.

"The company has a policy about keeping it local so that's a good sign," he said.

Elders Moora spokesperson Robert Forbes agreed with Mr Greay's assessment, saying that 95 per cent of agricultural chemicals used by Hassad at the Bindi Bindi property were sourced from his Moora branch.

"On top of that, all their labour is sourced locally and they've bought all their machinery from the local John Deere dealer in Moora," Mr Forbes said.

Mr McKeon said corporate agriculture had a real place in the succession plan of Australian farming, but that did not mean an end to family farms.

"Corporates can't own all the land and there will always be a place for family farming." he said.

"I often get asked whether the family farm is coming to an end and where is the next generation of farmers coming from.

"My answer is that corporate agriculture can provide a training ground for the future farmers.

"And as a corporate you need people within communities.

"We also need support and back-up for supplies and logistics and we need a broader workforce that we can call on."

In April 2012 Hassad acquired 14,672ha in Jerramungup, sending ripples of uncertainty through the local district.

Shire of Jerramungup chief executive officer Bill Parker said that when the land was first purchased by Hassad, there was concern that labour, materials and consumables would be imported and bypass local suppliers.

"But Hassad has been an ideal corporate citizen, employing local people, using local contractors and where possible, purchasing consumables locally," Mr Parker said.

"Hassad has also invested heavily in farm infrastructure, constructing large machinery, grain and workshop sheds.

"This activity has definitely had a positive economic benefit locally."

According to Mc McKeon, Hassad believes it is a part of its duty to look after families in neighbouring communities.

He said Hassad was committed to developing career paths for young people in agriculture and keeping original staff on properties.

And part of the solution was to make agriculture more attractive to young people and make improvements in occupational health and safety and animal welfare, to help to boost the image of the industry.

"It's not only about investment in those communities to keep them viable," he said. "Research and development is also necessary."

"As governments have aggressively wound back, corporates will need to invest in more research and development and Hassad has been doing that.

"People at the forefront of technology usually have a lot of failings and a small farmer can't afford that."

Mr McKeon said he understood some of the bad press and negativity around the buy-up of land in regional areas, but at the end of the day it was how people in those local communities judged the investment that was important.

"If we are good corporate citizens, operate within the boundaries of what's expected and contribute to those communities, then we'll all benefit," he said.