September 29, 2021

photo credit: Elders

By Lynda Kiernan-Stone, Global AgInvesting Media

goFARM has appointed Elders to market Yarrabee Park – giving bidders a rare opportunity to acquire one of the largest contiguous broadacre cropping assets in Eastern Australia. 

Founded in 2013, goFARM is one of the largest agricultural investors and managers in Australia, with about A$1 billion (US$720 million) in AUM, owning or managing approximately 70,000 hectares (172,974 acres) across New South Wales, Victoria, and Tasmania, including about 5,500 hectares (13,591 acres) of orchards.

Comprising 11,260 hectares (10,000 hectares, or 88 percent arable), Yarrabee Park has a high performing management team in place and a proven productivity track record, producing about 37,500 tons of grain and fodder in 2020, with higher output expected in 2021. 

The property is laid out in 13 management zones based on soil type and topography to optimize inputs, and has 740 hectares (1828.5 acres) developed for lateral irrigation with the opportunity for further development.

There has been extensive investments in soil fertility, land use conversion, and productivity efficiency with three forms of water sources: groundwater (Zone 3 Lower Murrumbidgee), the Murrumbidgee River, and Coleambally Irrigation Co-operative Ltd. scheme access. The water gained from these sources is in addition to the 433 mm of rainfall that usually comes in spring and winter.

There is 1,750 tons of on-farm seed and fertilizer storage, and extensive infrastructure developments have been designed to support a highly efficient grain production enterprise.

“Yarrabee Park is an excellent example of the goFARM investment strategy,” said Liam Lenaghan, founder of goFARM with the Costa family. “When I first inspected Yarrabee Park in 2014, I  immediately recognised the potential of the asset – its high-quality natural resource base, 430mm  annual rainfall, contiguous scale and location. We invested heavily in improving the soils, reconfigured the layout and built new infrastructure to support a high performing farming  enterprise.”

Over the course of its ownership, goFARM established a farming system at Yarrabee that included no-till operations, the retention of stubble to maintain ground cover and to introduce a range of break crops into the rotation to manage weeds, pests, and disease – all to preserve the soil structure.

This production system constantly works to improve the natural resource base of the asset, resulting in above district average yields using highly efficient machinery and labor due to the property having 10,000 hectares (24,710.5 acres) of contiguous cropland in addition to 60 kilometers of well kept internal roads eliminating the need for machinery to move off-farm, which Elders notes greatly improves overall productivity. 

Australian cereal, pulse, and oilseed are all benefiting from strong fundamentals in both the domestic and export markets. Drought conditions in the U.S. and Canada, compounded by rising global demand on the back of the global pandemic, have created a pole position for Australian grains and oilseeds, which due to extremely good seasonal conditions are expected by ABARES to forecast farm gate returns of A$73 billion (US$52.5 billion) in 2021.

But, in addition to the agricultural income, there is also a sizable proposal in place for a large-scale solar project on the property, presenting the opportunity for a diversification project with the potential to generate A$3 million (US$2.16 million) per year for 30 years for the new owner.

“Whilst currently a high performing cereal, oilseed and pulse enterprise, Yarrabee Park has considerable further irrigation and horticulture development potential,” according to Nick Myer,  Victorian and Riverina rural real estate manager, Elders.“The combination of climate, soil fertility and irrigation water access, coupled with the exciting potential of a diversified income stream  through the proposed solar project development makes Yarrabee Park a highly unique asset. We are delighted to be working with goFARM to present this asset to the market.”

Mark Barber, head of agribusiness investment services for Elders commented,“Yarrabee Park is a turn-key operation offering an established farming  enterprise with immediate returns and significant further development potential including tree  crops.”

“Australian agriculture  has reached a point where assets of this calibre and scale are able to be offered to a market that is experiencing significant liquidity at this level. Institutional investors know that they can invest in assets such as Yarrabee Park and exit at their choosing, knowing there is an expanding pool of capital  looking to deploy in the sector.”

Yarrabee is being marketed in a two-stage Expression of Interest process with non-binding offers due by 10 November 2021. For more information, contact:

Nick Myer – Vic/Riv State Manager, Elders

Angus Macleod – Elders Riverina Transaction and Advisory 

Matt Horne – Rural Real Estate Manager and Water Broker, Elders

– Lynda Kiernan-Stone is editor 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 Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.