Blackbull Station sold to agricultural investment fund with plans to expand dryland cotton



AS ANOTHER year begins, Grain Central looks back at the 10 most notable property sales for 2022 and if these transactions can give the industry any clues what this year will bring for the market.

Unsurprisingly, irrigated, rare and large-scale properties dominated sales at the pricier end of the market.

Corporate buyers were still a major player in this category, with Macquarie Asset Management (MAM) making some major purchases in 2022.



However, larger family operators also made their mark, with agents noticing a marked increase in demand from these buyers.

Families lead 2022 acquisitions

Elders general manager Mark Barber said family farms were the strongest competitors in the agriculture land market.

“The rationale for this seems to be twofold – growing their business to continue to achieve economies of scale, and the relative security and financial performance of farmland compared to other sectors of the economy at present,” Mr Barber said.

JLL Agribusiness national director of valuations and advisory Will Gurry said low interest rates for most of 2022 supported this drive to expand.

“Relatively cheap debt and strong farm income encouraged the expansion of these businesses,” Mr Gurry said.

“This was evident throughout the first half of 2022 with market activity indicating a capital growth in excess of 20 percent per annum.”

Mark Barber said family operators in eastern states have been remarkably resilient in 2022 and continuing to expand despite heavy rainfall and flooding.

He said the situation was reversed for growers in Western Australia and South Australia, with record grain harvests on the cards.

“We are yet to see what the full rural property market impacts of the devastating floods on the East Coast will be.

“It must have been devastating for farmers to see crops that started with so much potential, succumb to excess rainfall and floods.

“However, with full soil moisture profiles and spilling dams, most regions are set up for a good start in 2023.”

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10. Major NT cropping acquisition

Although not a sizable historic cropping property, the sale of the Northern Territory’s Blackbull Station in June was notable as an acquisition driven by the new owner’s intention to expand the block’s cotton production potential.

Located in the Douglas Daly region, the 14,342ha mostly grazing property was purchased by NSW-based fund manager Australian Agricultural Growth Partners for circa $30M.

The company will collaborate with Customised Farm Management to expand the dryland cotton production footprint at Blackbull.

The property had 800ha developed to cotton with another 5500ha to improved pasture species.