Jassmyn Goh, Super Review / Money Management 27 January 2022
Regenerative agriculture business, Packhorse has acquired its first New South Wales property that aims to provide capital growth along with land regeneration and carbon sequestration.
Packhorse, which was aimed at institutional investors, said Ottley Station had 8,654 hectares of rural land.
Pastoral, Packhorse Investments Australia chief executive, Geoff Murrell, said the firm was setting out to improve soil health on a mass-scale across the country through its regenerative practices.
“We are deploying sizeable carbon sequestration programs to address climate change and we are supporting the beef industry by providing a superior environment for cattle growing and breeding conditions,” Murrell said.
“The upside for investors is not only capital appreciation that has been growing at an average of 7.5% per annum for the last 20 years, but also a regular income stream from the cattle agistment model. Annual total returns well in excess of 12% have been delivered in the privately managed portfolio, linked to land appreciation and stable income streams from long-term agistment agreements negotiated with major cattle companies and beef processors.
“Additionally, investors may benefit from the growing carbon market. With the price of ACCUS [Australian Carbon Credit Units] over $50, this may present a very exciting future income upside.”
Packhorse aimed to achieve carbon neutral status by 2028 and had partnered with Carbon Link to ensure greater efficiency of the carbon sequestration programs, including baselining all Packhorse properties and undertaking ongoing measurement.
Hyperion’s Tim Samway, and chair of Packhorse, said the firm was on track to accumulate two million hectares of cattle properties within five to 10 years.
“With the addition of each new property, the cumulative effect Packhorse is having on the environment will grow exponentially,” Samway said.
“The crucial point to remember is that no additional agricultural land is being made and each year, more of this land is becoming ‘desertified’ because of the impact of poor farming practices.”