Strength in numbers: Nick Raleigh is the general manager of the Sandmount project incorporating three major farm sites in northern Victoria. He is pictured at the Katunga orchard property.
Photo by
geoff
goFARM is one of the big investment companies that takes a hands-on approach to investing in agriculture in northern Victoria.
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The company has aggregated some neighbouring farms and has commissioned major works including land forming, irrigation infrastructure, fencing and cultivation.
goFARM now owns about 7000 hectares in three main districts — Katunga, Yalca and Cobram East.
Many of the properties are under horticulture. While some are being leased back to farmers, the company expects to convert them soon.
Founder and joint owner of goFARM Liam Lenaghan said the company had identified about 4000 ha in its acquisitions that should be suitable for conversion to horticulture.
Pumped up: Four large pumps power the drip irrigation system on the 200-hectare almond orchard at Katunga.
Photo by
geoff
“There are presently about 10 employees on-farm. If we get to the full 4000 ha, it will be more like 150 direct on-farm jobs and that is without including the related, knock-on economic impact.”
Mr Lenaghan estimates the investment to date in the Sandmount project is more than $200 million, including the purchase and development costs.
“There’s probably that much more to go, again, to develop the portfolio.”
Why the emphasis on horticulture?
“It’s about optimising dollars of revenue per megalitre of water per hectare of land,” he said.
“It is about moving land and water infrastructure to the highest and best use, while delivering job creation and having a positive impact on the community.”
Big changes: The switch to horticulture from beef and dairy at Katunga has involved some major earthworks last year and this year. The company has targeted soil ameliorating, with deep ripping, applying gypsum, lime and manures and establishing a crop rotation, to start enhancing soil structure. Picture: goFARM
Photo by
geoff
Big companies moving into regions formerly dominated by family farms can evoke some suspicion — and Mr Lenaghan is aware that a lot of people are watching.
“There is always a healthy degree of scepticism. That’s okay — we would prefer people to judge us on action rather than words.”
Planting for the future: The varieties of almond planted at Katunga include the Shasta, which is self-pollinating.
Photo by
geoff
He acknowledged there had been some speculation when they first entered the district that this was a water grab and they were going to move water out of the region.
“That is not our intention. It is our intention to hold water and use the water locally. That has always been our strategy.
“We wouldn’t have bought 6500 hectares if we wanted to be water speculators.
“It’s our purpose to transform assets and contribute to growing healthy food that is nutritious and convenient and can drive jobs and do good in the regions we are investing in.
“It would be contrary to our purpose to be just water speculators.“
Water is vital: The Katunga goFARM development sits astride the big Murray Valley No 5 Goulburn-Murray Water channel. The outlets have been rationalised to two, servicing the 500 ha orchard.
Photo by
geoff
Asked whether the company will exit the investments after a fixed period of time, Mr Lenaghan said all their investments were made with a long-term view.
“We want to build assets that we can hold forever, but we are commercial.
“If someone decides they want them more than us and they are prepared to pay for them, we will assess any offer on its merits.
“There is capital on the front end that creates these orchards and investments and ultimately it doesn’t matter who holds the equity or the debt, the orchard doesn’t disappear; you don’t take them with you.
“The jobs and regional benefits endure regardless of who owns them.”
Lots of nuts: Almond trees planted out in August on the Katunga goFARM site.
Photo by
geoff
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