A growing Australian farm investment fund is eyeing off carbon credits with plans to buy 14,000 hectares (34,600 acres) of farmland across the southern Riverina.
Kilter Rural, a Victorian-based investor and management company, founded in 2004, has launched a half billion dollar fund to make those plans happen.
Kilter Rural wants to adopt the "world's best sustainable agriculture practices" from an initial purchase of 7000ha (17,297 acres) in the NSW/Victoria border irrigation area.
The fund, which already has $280m in funds under management, is intended to finance a rapid expansion with a "significant aggregation of farmland".
About a third of the farmland it buys will be re-forested as one of the keys to create carbon credits for sale.
Kilter Rural came to prominence with the management of 38 irrigated farms in the Lake Boga region of northern Victoria to become a big name in the tomato industry.
This latest plan is to attract investors to their tested methods of using "existing and emerging technology to achieve carbon sequestration at scale in the production of sustainable food".
Kilter Rural's aim is to "balance" food production with environmental protection.
Its new purchases will be managed to meet COP15 Global Biodiversity Framework targets, with 30 per cent of the land to be re-forested, also generating high-integrity carbon credit units for sale in rapidly growing carbon markets
The new fund will be perpetual and is projecting annual returns of around 10pc, comprising a combination of capital growth and yield.
Kilter Rural chief executive Cullen Gunn said investors would benefit from the expertise of Australia's most experienced natural capital and water investment manager.
"Over 18 years Kilter Rural has transformed over 11,000ha delivering improved soil health, world-class water management, and ecosystem restoration," he said.
"Kilter has aggregated and transformed over 50 properties, over the years becoming Australia's largest tomato and irrigated organic cereal producers, and delivering a 30-40pc increase in native forest cover, providing essential habitat for native flora and fauna."
"This fund will deliver sustainable food and fibre underpinned by scaled natural capital impact via biodiversity protection, scaled reforestation and regenerative soil management that deliver climate change mitigation services."
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Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
