The Bodallin Aggregation covers 37,553ha and is being marketed alongside the 40,401ha Warralakin Aggregation. Photo: Colliers

WESTERN Australia’s Merredin Farms Wheatbelt Portfolio has returned to the market as two highly developed dryland cropping aggregations offering carbon farming potential.

The 37,553ha Bodallin Aggregation and the 40,401ha Warralakin Aggregation are located in the North Bodallin district of WA’s Central Wheatbelt.

The region is a major contributor to Australia’s grains industry with more than 90 percent of production exported to Asia and the Middle East.

The area is well-serviced by grain receival sites at Merredin and Bodallin, efficient rail and road networks, and Kwinana, the largest grain terminal in Australia.

Jointly owned by the Saudi Agricultural and Livestock Investment Company and WA-based investor PenAgri, Merredin Farms was offered to the market in January to wind up SALIC’s involvement in Australian broadacre cropping – see below for more details.

Purchased primarily as a grain farm through SALIC’s 2019 acquisition of leased and freehold country totalling 200,000ha, they were aggregated by John and Julie Nicoletti.

Colliers Agribusiness agent Rawdon Briggs was appointed to sell Merredin Farms Wheatbelt Portfolio.

He told Grain Central the purchaser would become WA’s largest corporate broadacre farmer, with economies of scale and efficient farm practices creating a platform for low-cost, high-volume grain production.

Despite dancing with numerous groups, including grain and carbon operators and United States corporates, the portfolio failed to sell via an expressions-of-interest process.

Harvesting on Warralakin last year. Photo: Colliers

Mr Briggs was unable to provide a price guide for the portfolio at the time, but experts were indicating it could fetch around $200 million or $2565/ha.

While suited to mixed farming, sheep have been phased out of the operation in recent years and the portfolio was being sold as a full grain operation.

This season, 29,200ha of the 32,568ha of arable country in the Bodallin Aggregation have been sown to wheat over 21,892ha, canola across 3916ha, and barley on 3392ha.

On Warralakin, 28,131ha of the 33,591ha arable hectares have been sown to wheat over 22,949ha, and barley on 5182ha.

Carbon opportunity

Mr Briggs said the Bodallin and Warralakin Aggregations have been extensively developed and offer potential carbon-farming income.

“The eastern Wheatbelt is suited to vegetative carbon sequestration due to its vast agricultural land, favourable soil profile, and lower land values, enabling low-cost, high-integrity carbon sequestration at scale.”

Mr Briggs said the vendors have explored a tree carbon project, with around 70 percent of the hectares assessed identified as suitable to generate six ACCUs per hectare per year.

“The large landholdings provide an opportunity for contiguous land packages suitable for carbon development and renewable energy to operate side-by-side with current farming operations.”

Mr Briggs said it offers an unprecedented opportunity to supplement traditional farming income and maximise the value of agricultural land.

“The dual opportunity for traditional farming and carbon sequestration presents a forward-thinking investment strategy, merging agricultural productivity with environmental sustainability.”

Both properties benefit from superior and extensive infrastructure.

The Bodallin and Warralakin Aggregations are available on a going concern basis via expressions of interest. They offer an immediate, fully staffed turnkey enterprise, including modern plant and equipment.

Shift for SALIC

According to its website, SALIC entered into offshore investments in 2012 with purchases tied to grain, rice and meat in countries including Brazil, Canada, India, Singapore, and Ukraine as well as Australia with the aim of improving the kingdom’s food security.

SALIC’s investment in processing rather than production have been significant in recent years and include its purchase in 2021 of 35 percent of Minerva Foods Australia, which followed its 2016 buy-in of the Brazilian parent Minerva Foods with 31pc.

In Australia, Minerva owns the Australian Lamb Company which includes a meatworks at Colac in Victoria, as well as processing sites at Tammin and Esperance in WA.

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