A drone image of Goomig Lot 16 included as part of an EOI process opened in April 2024. Photo: MG Corporation

ASX-LISTED Duxton Farms has revealed it has entered into a five-year lease for a 285ha cropping property located in the Ord Irrigation precinct in Western Australia.

This move extends Duxton’s investment in northern Australia, which includes leases over the 141,000ha Mountain Valley cattle station and the 23,802ha Wildman Agricultural Precinct cropping property, as well as ownership of NT Portion 5088.

Duxton has provided little information about the Ord lease other than details provided in its Preliminary Final Report it released to the ASX last week.

In it, the company announced it had entered into the agreement with owner MG Corporation, an organisation formed to represent interests of native title holders in parts of the East Kimberley region.

“The group took out a lease for a small irrigated block located within the Ord Scheme near Kununurra where it is cultivating its first cotton crop, accelerating the development of Duxton Farms’ operations team in northern Australia,” the report said.

The report stated that the lease commenced on January 1 and that payments of $72,000 were made during the financial year ended June 30.

It noted that Duxton Farms director Paul Burke was also a director of MG Corporation.

While not specified in the report, the announcement most likely refers to Goomig Lot 16, a 285ha block owned by MG Corporation which was part of an expressions-of-interest process launched in April 2024.

It was brought to market alongside Goomig Lot 15, a 390ha block partially cleared and developed for irrigation.

The EOI was for a joint-venture opportunity with MG Corporation which was “open to negotiation”.

However, the offer did specify that any “proponents that take Lot 16 must also take and develop Lot 15”.

This points to Duxton having control of the larger block, although this was not specified in the company’s Preliminary Final Report.

The EOI said Lot 16 had been planted to cotton in 2022 and 2023.

The lots are part of larger Goomig farm area, also known as the Weaber Plain development, or Ord Stage 2.

“Lots 15 and 16 are also a part of the Ord East Kimberley Expansion Project and are within a broader agriculture area initially developed by the state and now farmed by KAI.

“MG Corporation chose these particular lots due to their rich soils.

“Both lots have environmental and other approvals, a provisional water supply, completed farm designs, partial irrigation infrastructure and close proximity to Wyndham Port.”

The lots also come with irrigation water supplied by KIA at an annual allocation rate of 15ML/ha.

Northern cropping update

Duxton Farms has also provided an update on its overall plans for broadacre cropping production in northern Australia.

It said its plan was to focus on expanding the cattle herd at Mountain Valley, but that long-term cotton cropping would be a staple at the operation.

“The 0perations team in the Northern Territory has been further expanded to support the cattle program at Mountain Valley and oversee the development of new annual cropping systems at that property and at the Wildman Agricultural Precinct,” the report said.

“Surveying at Mountain Valley is currently being finalised, while clearing at the freehold NT Portion 8554 which is part of the Wildman Agricultural Precinct is already underway.

“In the first instance the group will look to grow fodder at both properties partially to complement the cattle program at Mountain Valley.

“Over the long-term, however, it is envisioned that Mountain Valley will focus on cotton production, while Wildman will explore opportunities for high-value annual cropping and permanent horticulture.”

Duxton Farms said initially the cotton and fodder would just be “to support the group’s livestock program at Mountain Valley” but “eventually have size and scale to bring produce to market”.

“The cropping sub-sector across northern Australia is developing quickly, with services and physical infrastructure having been expanded across the region.

“The board continues to view participation in this development as one of the most potentially value-accretive investment opportunities in all of Australian agriculture, not only from a land conversion and capital appreciation perspective, but because farms can be operated at a large scale with low input costs.”

Assisting the development of the cotton industry in the Ord is the Kimberley Cotton Gin in Kununurra, which officially opened on Monday.

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