By Patrick Gower
The Crafar farms are now the Chinese farms.
Government ministers have approved a recommendation from the Overseas Investment Office that the 16 farms be sold to the Shanghai Pengxin group.
It's a $200 million deal which comes with strings attached for the Chinese.
The Crafar farms make up 7900 hectares of prime New Zealand farmland, and the Government has decided they can be sold off to a Chinese company.
Prime Minister John Key says under the law, his ministers had no choice.
"They can't just say no," says Mr Key. "They would have to say no, and here is the reason why - and one of those reasons can't be, 'Because you are Chinese.'"
Pengxin has interests in property, mining, and now, farming - although some of it looks a bit different to the traditional New Zealand way.
"I think this is a positive for those particular farms," says Mr Key.
The OIO added these conditions:
Pengxin is barred from owning New Zealand milk processing plants;
It must invest $14 million in economic/environmental sustainability;
Set up dairy farming training school;
Guarantee public walking access to some areas.
The state-owned enterprise Landcorp will manage the farms on behalf of Penxing.
"What we want to do here is make sure New Zealanders have the first right to try and buy our own land back, otherwise we'll end up being tenants in our own land," says Labour leader David Shearer.
The losers are a lower Kiwi-owned group headed by Sir Michael Fay. Its only chance now is a last ditch court challenge.
The Penxing bid is all part of a rush by China to get food security for its massive population and a desire for what's called 'vertical integration' - owning the supply chain from start to finish.
Mr Key is not worried - yet.
"If we see a run on New Zealand farms, or what I perceive to be a run on New Zealand farms, or what I see to be an unacceptable level of sales to foreigners, then the Government reserves the right to change the law."
This is really a small skirmish in a global battle about China's influence and needs. Kiwis will have to get used to demands for our farmland from foreign buyers and the politics around it.
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