Duxton Farms says flooding has wiped out winter, summer crops

ASX-listed agriculture investor Duxton Farm says major flooding in eastern Australia has wiped out most of its winter and summer crops, and put a major dent in its profit forecast.

Duxton Farm says major flooding in eastern Australia has wiped out most of its winter and summer crops. Picture: Christoph Nagele/Townlife

ASX-listed agriculture investor Duxton Farm says major flooding in eastern Australia has wiped out most of its winter and summer crops, and put a major dent in its profit forecast.

In a statement on Monday, Duxton said its farming land in central NSW had been hit hard by heavy rainfall this year, resulting in a 60 to 80 per cent reduction to its winter harvest and a complete loss of its summer crop.

The company expects its full-year revenue for the 12 months to June 2023 to halve to about $8m as a result of the flooding events, and is forecasting a net loss of about $6.2m – almost double last year’s $3.2m loss.

“Duxton Farms is still in the process of evaluating the full impact of the flooding event on its properties, although it has become clear that the current season’s harvest will be severely impacted, which will in turn have a material impact on the company’s financial results,” the statement reads.

“While flood waters appear to have peaked, significant areas of the region, including Duxton Farms’ properties, are inundated and it will require several weeks of warm and dry weather to get the company’s properties to a point where surviving winter crops will be harvestable.

“At this stage, the investment manager believes that its total winter harvest will be reduced by between 60 per cent and 80 per cent, while it has been unable to get machinery onto its fields to plant a summer crop.”

Duxton Farms owns and operates a farming aggregation between Forbes and West Wyalong in central NSW, growing a mix of summer and winter crops including wheat, barley and canola.

The company said it had an aim to “quickly and effectively diversify the company’s exposure to different production systems, commodities and geographies to reduce its reliance on the existing aggregation”.

Duxton Farm shares closed 6.7 per cent, or 9c, higher on Monday at $1.44. They are down 5 per cent since December 31.

Duxton Farms is managed, alongside ASX-listed Duxton Water, by the Duxton funds management group.

Originally published as Duxton Farms says flooding has wiped out winter, summer crops