Wilga Farming buys first property in CDPQ Clean Energy Finance Corporation partnership

In a deal worth $200 million the government's Clean Energy Finance Corporation has teamed up with global investment giant CDPQ to create Wilga Farming.

The new venture promised to showcase its properties and share the lessons it learns in an effort to drive the decarbonisation of the sector, and has already bought its first farm, The Glen.

Located in the NSW Northern Tablelands, about 40km west of Inverell, the 1200-hectare property will be the subject of a range of sustainable initiatives to improve farm productivity, such as reducing synthetic fertiliser use, improving irrigation, rotational grazing, and soil carbon management.

CDPQ manages assets of $442 billion, with almost $14b already invested in Australia, and committed $150m to Wilga Farming. The company's executive vice-president Emmanuel Jaclot said the partnership would "truly move the needle" on sustainability in the agricultural sector.

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"[This] will enable us to acquire more valuable assets in the attractive Australian market," Mr Jaclot said.

Wilga Farming's portfolio will be managed by Gunn Agri Partners, which CDPQ and the CEFC acquired a minority stake in. The Australian-based agricultural manager already looks after $750 million in assets, including more than 2.5 million acres of cattle grazing pastures and forest.

Climate Change Minister Chris Bowen said the significant investment showcased the potential economic opportunities in reducing emissions from food and fibre production.

"Agriculture is responsible for over 15 per cent of Australia's greenhouse gas emissions, and by supporting initiatives like this we're investing in solutions to drive up farm productivity and profits, and drive down emissions at the same time," Mr Bowen said.

CEFC head of natural capital Heechung Sung said whatever Wilga Farming learnt in its sustainable agricultural journey would be shared with the agriculture industry.

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"The platform will showcase market-leading sustainable land practices to farmers across multiple production and climate regions, offering a pathway to reduce their carbon footprint," Ms Sung said.

"We believe there is enormous untapped potential for new investment in a sustainable future for agriculture as part of a net zero economy."

Agriculture Minister Murray Watt said it was important the government and the industry looked for ways to be more sustainable in order to reduce emissions, builder resilience and develop new income streams.

"Bringing down on-farm costs through efficient energy, fertiliser and water use is good for business, while also being good for the environment," Senator Watt said.