Chinese ownership of Australian farmland has increased by 2.6 million hectares in 12 months, driven by the sale of pastoral company S Kidman & Co.
Chinese investors now own 25 per cent of foreign-held land or 2.5 per cent of agricultural land, according to figures released on Friday.
But despite the 0.7 per cent hike in Chinese ownership, the UK remains Australia's largest foreign investor in agricultural land.
UK investors own about 27 per cent of land held by foreigners or 2.6 per cent of Australia's total agricultural land.
The United States comes in third, with 0.7 per cent of agricultural land.
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The land register shows foreign investors held just 13.6 per cent of all Australian land in June 2017, down from an adjusted 14.1 per cent the previous year.
Foreign ownership has plummeted by 33 per cent in South Australia, 11 per cent in Queensland and 10 per cent in the Northern Territory.
Overseas investors have bought up more Western Australia farms, but foreign ownership still represents less than 17 per cent of the state's agricultural land.
"The Turnbull government understands that trade and foreign investment creates jobs for Australians, and always will," Treasurer Scott Morrison said in statement on Friday.
"At the same time, the Turnbull government has taken consistent and determined action when it comes to ensuring foreign investment is not contrary to the national interest."
