Duxton Farms has initiated the sale of three major cropping properties near Forbes, NSW, signaling a full exit from broadacre cropping in the region as it pivots towards diversified agricultural investments.
- Marketing of three Forbes properties totaling 7,061 hectares
- Complete exit from irrigated and dryland cropping in New South Wales
- Includes significant 8.6 gigalitre Lachlan River water portfolio
- Proceeds earmarked for horticulture, viticulture, apiculture, and Northern Australia expansion
- Expressions of interest expected by March 2026, settlement targeted before FY2026 end
Strategic Divestment in Broadacre Cropping
Duxton Farms Ltd has taken a decisive step in reshaping its agricultural portfolio by commissioning CBRE Group to market three of its irrigated and dryland cropping properties near Forbes, New South Wales. The properties; Walla Wallah, Yarranlea, and West Plains; span a substantial 7,061 hectares, with approximately one-third capable of irrigation. This move marks the company's complete exit from broadacre cropping operations in New South Wales, a significant pivot in its long-term strategy.
Asset Quality and Water Rights
These properties are not just extensive in size but also carry a valuable water portfolio, including 8.6 gigalitres of surface and groundwater rights from the Lachlan River. Such water entitlements are critical in Australian agriculture, often dictating the viability and productivity of cropping assets. Marketing these assets together positions them as an institutional-grade package, likely to attract serious interest from agricultural investors and operators looking to consolidate or expand in the region.
Reinvestment into Diversified Agriculture
Duxton Farms plans to reinvest the proceeds from this sale into expanding its footprint in horticulture, viticulture, and apiculture, as well as accelerating growth in Northern Australia. This diversification reflects a broader industry trend where companies seek to balance traditional broadacre cropping with higher-value, less commodity-exposed agricultural sectors. The shift could enhance resilience against market volatility and climatic risks inherent in broadacre farming.
Timeline and Market Implications
The company expects to receive expressions of interest by the end of March 2026, with settlement anticipated before the close of the financial year. While the announcement does not disclose price guidance or detailed sale terms, the market will be watching closely for the transaction's impact on Duxton Farms’ balance sheet and earnings profile. The successful redeployment of capital into development assets will be key to validating this strategic realignment.
Looking Ahead
This sale represents a significant milestone in Duxton Farms’ evolution, signaling a clear departure from its historical cropping base in New South Wales. Investors and industry observers will be keen to monitor how effectively the company leverages its new focus areas to drive growth and shareholder value in the coming years.
Bottom Line?
Duxton Farms’ exit from NSW broadacre cropping sets the stage for a transformative portfolio shift with high stakes for future growth.
Questions in the middle?
- What valuation will Duxton Farms achieve for the Forbes properties amid current agricultural market conditions?
- How quickly and effectively can the company deploy sale proceeds into its targeted horticulture and Northern Australia ventures?
- What risks might arise from exiting a historically core segment and focusing on more specialised agricultural sectors?