The federal government will introduce a foreign ownership register for agricultural land, Prime Minister Julia Gillard has told farmers.

The register will provide a more comprehensive picture of the specific size and locations of foreign agricultural landholdings.

The prime minister’s announcement at the National Farmers Federation national congress in Canberra on Tuesday was applauded by delegates.

The government shortly will release a paper to begin discussions with stakeholders including farmers, the states and territories about the design and content of the register.

Ms Gillard said she wanted to take the politics out of foreign ownership.

“Foreign investment is not a new thing,” she said.

Just 0.1 per cent of total direct foreign investment is in agriculture, forestry and fishing, while 89 per cent of agricultural land is entirely Australian-owned.

A further six per cent is majority Australian-owned.

That proportion was roughly similar to levels 30 years ago, Ms Gillard said.

A working group that includes Treasury and other government agencies will release a consultation paper soon.

The final design of the register will take into account the need to improve transparency of foreign ownership in agriculture without imposing unnecessary burdens on investors or duplicating work already undertaken by state and territory governments.