Outloading grain on one of Duxton’s properties in the Forbes district in NSW. Photo: Duxton

ASX-LISTED agricultural asset manager Duxton Farms gave an update on its property operations and the progress of its contentious merger with four holdings at its annual general meeting last month.

In June, the company announced plans to merge Duxton Dried Fruits, Duxton Walnuts (also known as Duxton Dairies), Duxton Bees, and Duxton Orchards into their existing cropping and livestock holdings.

This news was followed by a turbulent period for the business with a group of shareholders in September applying to the Federal Government’s Takeovers Panels alleging misconduct by the Duxton’s chair Ed Peters and another investor.

In early October, the panel announced it declined to conduct proceedings against the pair, finding the merger was “not fair but reasonable” due to the “strategic benefits and the absence of superior alternatives”.

The merger was formerly agreed to by eligible shareholders during a meeting on October 10.

Duxton Farms chair Ed Peter told the AGM on November 28 that work was “going very, very well” to merge the businesses with operational efficiencies already being found and implemented.

He did note some discontent from shareholders around the administration costs involved in the merger, which had an impact on the 2025 financial results that ended with a total comprehensive loss of $10.8 million.

This discontent flowed through into the AGM, where three of five motions failed to pass.

These were the adoption of the remuneration report, which had 73.72 percent votes against; increase in total aggregate remuneration for non-executive directors, with 80.43pc against; and approval of issue of Equity Securities for the purpose of ASX Listing Rule 7.1A, with 55.35pc against.

The remaining resolutions – re-election of director Mr Peter and approval of previous issue of shares – were carried with more than 97pc in favour.

“The majority of these votes are from a small number of very long-term supporters who’ve expressed to me personally that, while they are supportive of the recently completed merger, the company and its management, they are unhappy with the costs incurred to get the transaction over the line,” Mr Peter said.

“I do accept that the merger was very expensive and…we understand the frustration at the costs incurred and will commit to making this scenario focus for the future.

“We absolutely believe that the underlying investment strategy will ultimately justify itself and cost management and budget discipline is going to be the key to leveraging the company’s increased scale.”

Northern Australia progress

Mr Peter said FY25 and the first quarter of 2026 saw significant activity at the company’s Western Australia and Northern Territory holdings.

In NT, Duxton owns the 26,077ha Wildman Agricultural Precinct and NT Portion 855, and leases the 141,000ha Mountain Valley Station.

The company also leases a 285ha cropping property in WA’s Ord region from MG Corporation.

Mr Peter said the company picked its first Ord cotton in FY25.

“The yields looked pretty much in line with down south, which is exceptionally good for us.

“We’ll continue working with the traditional owners of MG Corp to explore further partnership opportunities to build on what’s been an excellent start to what we hope is mutually beneficial long-term relationship.”

He said clearing works at Wildman were “ahead of schedule” with the team “currently assessing cropping operations for next season”.

At Mountain Valley, Mr Peter said while cattle herd growth was “impressive”, the company was disappointed with the current understanding of the station’s cropping potential.

“The company has been surveying at Mountain Valley to clear and crop.

“Unfortunately, there may be less land at that property suitable for cropping than we originally anticipated.

“This is an ongoing development, this is highly dependent on the updated surveying, and we will continue our work to reach the final position, but if it becomes apparent that we cannot fulfil our original cropping objectives at Mountain Valley, then the company may look to terminate its lease early.”

In 2022, Duxton signed a five-year lease to operate Mountain Valley Station.

NSW diversification, cropping update

On Tuesday, the company announced to the ASX that it had sold Merriment, a 535ha irrigated cropping property in the Forbes district of central New South Wales for $5.1M.

The company has liquidated its sheep and cattle holdings in NSW. Photo: Duxton

The statement said the sale was to a “private buyer on a vacant-possession basis”.

In August, Merriment came to market, alongside neighbouring 940ha cropping block Cowaribin.

In July, Duxton released updated independent valuations for its holdings, with CBRE and Knight Frank estimating Merriment at $6.35M, about $1.25M above its sale price.

Duxton’s broadacre NSW holdings now incorporate 1400ha Walla Wallah, 2184ha Yarranlea, 2709ha West Plains, and 768ha Lenborough, alongside the yet-to-be-sold Cowaribin.

In 2025, Mr Peter said the NSW properties produced a “strong canola crop with reasonable pricing” but struggled on the grain and cotton front, with neither crop proving “to be notable drivers of performance”.

He said the team sold out of most of its sheep and cattle at Forbes before the end of FY25, as most of its livestock program was run of out Merriment and Cowaribin.

“I can confirm now that the entire livestock program in NSW has been liquidated.”

He said the current FY26 winter crop at Forbes “had been very challenging and we did not have a fantastic end of season”.

“The budget was revised down several times.

“While we believe the conditions that we currently have will give us a good start to the cotton season, we clearly suffered at the end of the grain season.”

In Victoria, Duxton is expending “fairly significant” capital at its 1185ha Piambie property.

Mr Peter said stage two pistachio plantings were completed in early FY25, with stage three finalised a few months ago.

“Piambie is now Australia’s largest plantation at 480ha.”