A large agricultural investor says Australia is entering an era of institutional investment in farming.
Sustainable Agriculture Funds (SAF) has superannuation money in a $150 million portfolio of dairy, beef, cotton and grain cropping across Australia.
Australian superannuation firms like Auscoal, Catholic, Christian, AMP and Melbourne University are all investors in the Sustainable Ag Fund.
The investments have only been delivering single digit returns until now.
But the fund's chief executive John McKillop says Asia's need for more food is driving up the interest.
"I think it just takes a patient investor, which is historically the family farm.
"They are more patient, they know the returns aren't steady year on year.
"We've just got to find the right institutional investors who are willing to accept those returns are going to be slow or negative in some years, but ultimately they are a solid performer."
His comments come as Lempriere Capital partners, a part-owner of Australia's largest cotton farm Cubbie Station, takes equity in Australian Farms Fund Management (AFFM), the manager and trustee of Sustainable Agriculture Fund.
AFFM now has a combined $500 million under management, given its role as manager of Cubbie.
"You must remember a lot of the food security issues have been driven not by Australia but overseas investors, thinking that in the future it will become a critical part of the global production scene.
"In Australia, we haven't seen that boom quite flow through yet."
While SAF hasn't yet invested in food production or processing, Mr McKillop says it's considering the move.