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Top 10 defining cropping property sales of 2022
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…
Read the full article below to see the complete list.
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.
NSW interests swoop on NT cotton cropping opportunity
The first major land acquisition for dryland cotton production in the Northern Territory has been made following the sale of the top end grazing property Blackbull Station.
Fund manager Australian Agricultural Growth Partners is believed to have paid around $30 million for the 14,342ha holding in the Douglas Daly region, south of Darwin. If proven accurate, the price represents a significant premium over grazing land value in the region.
Blackbull Station sold to agricultural investment fund with plans to expand dryland cotton
An agricultural investment fund has paid around $25 million for 14,300 hectares of freehold land in the Northern Territory's Douglas Daly region, with plans to expand its dryland cropping operation.
Australian Agricultural Growth (AAG) Partners purchased Blackbull Station, 250 kilometres south of Darwin, according to documents from the NT Land Titles Office.
Several thousand head of cattle included in the sale puts the total price around $30 million.
The price for the land, around $1,755 per hectare, is thought to be a record for a non-horticultural property in the NT.
In an information paper circulated to potential investors before the purchase, AAG Partners said Blackbull Station "could become one of Australia's most profitable cotton enterprises".
Australia / India trade agreement provides a boost for Aussie cotton
The Australia – India Economic Cooperation and Trade Agreement signed on 2 April 2022 will provide Australian cotton with a competitive advantage against US cotton imports into India. In an extract from a report from the United States Department of Agriculture the Department flagged the challenge for US cotton and the opportunity for Australian cotton as:
“Cotton: The United States is the largest supplier of raw cotton to India, including extra-long staple (ELS) and Upland (long staple) cotton varieties. The value of U.S.-origin cotton exports exceeded USD 222 million in 2021 (commanding a market share of nearly 43 percent). Australia is a supplier of long staple cotton to India, directly competing with U.S. supplies. In 2021 Australia-origin cotton exports reached USD 66 million, gaining almost a 13 percent market share. Australia’s access to a duty-free quota of 300,000 bales will likely negatively affect U.S. upland cotton sales. At present, imported cotton in India faces a 10 percent tariff and duty-free access will provide Australian cotton a strong competitive advantage. “
The one Aussie industry booming despite economic turmoil
Australia is expected to deliver its best summer crop on record despite a challenging year for farmers.
An estimated yield of 5.5 million tonnes for 2021–22 will help overall agricultural exports surpass an expected $80bn for a second consecutive year.
The new report by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) painted a shining picture of Australia’s fortunes.
Katherine Cotton Gin opening marks a milestone for Northern Territory Agriculture
Article by Cotton Australia
In a significant development for Northern Territory agriculture, the Katherine Cotton Gin marked its official opening with a ceremony attended by over 150 people. The gin, set to start operations soon, is expected to play a key role in advancing the region's cotton industry.
The idea to reintroduce cotton farming to the territory came from an interest exchange between David and Bruce Connolly, who were inspired by cotton growing in their live export yard and the need for cotton seed as cattle feed.
The gin's opening was officiated by Alan Meyers, Chair of Tipperary Group, who thanked attendees for their support and emphasized the positive outlook for the enterprise and the local cotton industry.
The gin, capable of processing between 150,000 and 200,000 bales yearly, signifies new opportunities for the region, taking advantage of the Top End's heavy rain during the wet season to produce rain grown cotton.
David Connolly, General Manager of Tipperary, praised Myers for his commitment to the project. With 90 cotton growers planting for 2024, the gin is expected to be a hub of activity for years to come.