September 26, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Founded in Melbourne in 1993, Warakirri is a multi-boutique asset management firm that has been a leader in agricultural investment and management for more than 25 years. Over that time, the team has developed an in-depth understanding of the critical principles contributing to the success of such investments, becoming one of Australia’s largest and most diverse agricultural investment managers.

With more than two decades of experience in identifying, developing, and operating agricultural assets for some of the world’s largest pension funds, the firm’s REIT strategies, the Warakirri Diversified Agriculture Fund and Warakirri Farmland Fund, offer investors exposure to the low-volatility agricultural asset class, offering a broad range of high-quality property assets being run by best-in-class tenant partners.

Just this summer, having completed its sixth successful acquisition, Warakirri announced that its Warakirri Diversified Agriculture Fund had surpassed a value of  AUD100 million (US$66.14 million). And when viewed collectively, Warakirri currently manages more than 200,000 hectares (500,000 acres) of agricultural land across nearly 70 aggregations throughout Australia for institutional investors, overseeing more than A$3 billion (US$1.92 billion) in AUM and commitments. 

Now, following an independent audit covering more than 160,000 hectares of properties operated by Warakirri  under its various strategies including the Warakirri Diversified Agriculture Fund, Warakirri Farmland Fund,  and Warakirri Cropping, the firm has secured certification by the Leading Harvest Farmland Management Standard. 

“Warakirri’s proud history and long-term experience in agriculture has taught us that agricultural  investments committed to environmental sustainability, positive social impact, and responsible  management produce higher and more sustainable long-term returns,” said Jim McKay, managing director, Warakirri. “Over more than 25 years, our  investors’ expectations on sustainability have evolved and they are increasingly seeking sustainable  investment strategies from asset managers such as ourselves.”

Leading Harvest

Having a standard for measuring sustainability in agricultural production is of paramount importance to ensuring the long-term viability of our food systems by preserving natural resources, fighting climate change, and mitigating environmental impacts. However,  it is equally important to impact investors who are making capital commitments based on the benefits of sustainable and regenerative production practices. 

But, how do you know that your operation is sustainable? How do you know if the measures that are being taken are having the intended benefits? These are questions that not only have implications for the environment and the fight against climate change, but also have weight for impact investors striving to track and quantify improvements stemming from sustainability initiatives.

Leading Harvest, an industry leader in agriculture sustainability, was launched on Earth Day in April 2020 presenting the first universal, outcomes-based sustainability standard focused on the continuous improvement of agriculture. And since that time, it has been a game-changer. 

The standard identifies sustainable practices based on 13 objectives, 33 performance measures, and 73 indicators. The platform addresses economic, environmental, social, and governance issues, and includes measures to efficiently use water, agricultural chemicals, and energy to grow crops for agricultural products while minimizing waste, conserving soils and water, and enhancing biodiversity. It also takes into consideration the wellbeing of the lessees of farmland, employees, contact management company employees, contract farm laborers, and local communities. 

Kenny Fahey, president and CEO, Leading Harvest commented, “Leading Harvest mobilizes the value chain to transition to a more sustainable and resilient agricultural  system. By providing one universally applicable and third-party verified certification, our Farmland  Management Standard gives farmers and agriculture customers a common language to scale best  practices, standardizing reporting and resolving inefficiencies across the sector.”

Just three years after its U.S. launch, nearly 3 million acres representing more than 100 crop types globally have enrolled. This success has led to the platform launching in Australia earlier this year, with enrollment across all six states, followed by an expansion into Canada with a pilot program in August 2023. 

Following a successful 12-month pilot tailored to the Australian agricultural environment leading to Leading Harvest’s launch in the country, Warakirri agreed to participate in the program explaining that “…this holistic program is best suited to drive positive change in the agricultural industry in Australia and  promote sustainable practices and deliver long-term value for investors.”

“We believe the Standard sets the benchmark as a sustainability program that is tailored to the Australian  agriculture environment,” said McKay. “We are very proud of this accomplishment and thank our clients, staff, managers,  tenants, and business partners for their continued commitment to furthering sustainable agriculture.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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