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Duxton locks in Wildman Agricultural Precinct lease

Grain Central February 3, 2025

Duxton now has three NT investments, with its largest a lease over the 141,000ha Mountain Valley. Photo: Duxton

ASX-LISTED agricultural investor and operator Duxton Farms has reaffirmed its confidence in large-scale broadacre cropping in the Northern Territory, updating the market on its plans for the 23,802ha Wildman Agricultural Precinct.

This comes seven months after the company was announced as the preferred proponent to develop the precinct, a farming operation suited to cropping and cattle 130km east of Darwin.

Last week, Duxton confirmed it had secured a lease agreement for the site.

Located on the Point Stuart Road, the precinct consists of three parcels of freehold land owned by the NT Land Council and earmarked for agricultural development since the 1980s.

Wildman is one of three precincts, along with Larrimah and Keep Plains, which the NTLC had opened for expressions of interest in 2020.

It was offered alongside the adjoining 2386ha freehold block, NT Portion 5088, which Duxton agreed to acquire in June 2024 for $10.25 million.

Together, the properties are supported by an 8021 megalitre groundwater license.

Duxton Farms chairman Ed Peters said the company’s board believed the agricultural resources of the region were very attractively priced relative to their productive potential.

He said the firm had identified the NT as a compelling investment opportunity because it exhibited many of the characteristics that the Central West of New South Wales did back when the company first started deploying capital.

“I am delighted that Duxton Farms has been given the opportunity to develop the Wildman Agricultural Precinct, and we look forward to working with the corporation, the government and the fantastic people of the Northern Territory to build something truly special in the Top End,” Mr Peters said in a statement published to the ASX.

“In my view, this is a very unique project that should create substantial long-term value for all of the Company’s stakeholders, and I look forward to being a part of the Northern Territory’s continued development.”

The initial term for Duxton Farms’ lease over Wildman is for eight years with a further term of four years subject to certain conditions.

The company has been granted a series of call options over the land parcels that will allow it to acquire the entire freehold from the NTLC at bare land rates as it fulfils certain development milestones.

The value of the land rates is estimated at $9.15M for the three portions.

In information published to the ASX, Duxton said these requirements relate to a minimum amount of land developed for cropping.

“The milestones require Duxton Farms to develop a specific percentage of each parcel (and of the precinct as a whole) to a state that would allow for broadacre cropping, although the long term objective and an expectation of both the NTLC and Duxton Farms is to develop high value irrigated cropping and/or horticulture at scale,” the company said.

“Duxton Farms has committed to investing a substantial amount of capital in the Northern Territory’s agricultural economy over the next eight years, with Wildman set to become the keystone project of the Company’s operating strategy in Northern Australia along with Mountain Valley Station.”

The company has also flagged that it may investigate opportunities relating to the generation of biodiversity and carbon credits.

NT investments

Previously centred on dryland cropping in NSW, Duxton is pivoting to broadacre, horticulture and livestock investments in the NT.

Alongside Wildman and NT Portion 5088, Duxton also leases a 141,000ha livestock enterprise, Mountain Valley Station.

Duxton has yet to announce which broadacre and horticulture crops it will target as part of its expansion; however, cotton has been a feature of recent decisions.

The company has extensive experience managing cotton production at its NSW aggregation which could be helpful in establishing the crop in the NT.

It has also flagged plans to commence cotton production at Mountain Valley Station after finishing the restocking program.

Duxton Environmental, Governance and Social Subcommittee chair Paul Burke said at December’s AGM that the company was working through approvals required to extend crop production on the site.

“The long-term goal at Mountain Valley is to create a cropping program with a focus on rainfed dryland fodder and cotton production,” Mr Burke said.

Similar agricultural development, the 5712ha Larrimah Agricultural Precinct also appears to be the site of future cotton development with proponents, Larrimah Farms Pty Ltd, identifying its plans for an 800ha irrigated crop in a water lease application to the NT Government.

NSW portfolio update

On Friday, Duxton also updated the market on the progress of the summer crop at its NSW aggregation.

The company said the cotton crop had “shown positive growth during December with all crops across Yarranlea and Walla Wallah receiving water-run fertiliser via the irrigation systems”.

However, like other properties across NSW valleys, the crop had been impacted by spray drift.

“Most of the cotton fields have received some level of spray drift from outside sources, though only modest damage has been observed across the crop which has largely been refined to two of the fields.”

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