Foreign Investment Review Board approves $780m farmland sale

The federal government has given the green light to one of Australia’s biggest-ever rural property deals — to a Cayman Islands company.

Formal control of one of Australia’s biggest agricultural operations has been given to a Cayman Islands company after it was officially approved this week.

Federal Treasurer Jim Chalmers has confirmed the government has no objection to the sale of Australian Food and Agriculture Ltd’s operations to an international owner.

The deal was inked in late August with the sale of AFA’s portfolio of properties to Agriculture and Natural Solutions Acquisition Corporation for about $780 million.

AFA was owned and built up by the late Colin Bell, and includes some of the best known properties in the eastern states including Boonoke, Wanganella and Burrabogie, as well as Wingadee in northern NSW.

But it was subject to the approval of the government, which has just been given.

Collectively, the properties under the AFA umbrella have a carrying capacity of almost 250,000 dry sheep equivalents, a 12,000 head feedlot, and the ability to grow a ranges of irrigated and dryland corps including cotton, rice, wheat, barley, canola corn, chick peas and faba beans.

Mr Bell established AFA in 1993 after buying the historic Burrabogie Station east of Hay, NSW.

The late Colin Bell pictured at Boonoke Station near Deniliquin in southern NSW.

Since then, the consortium established three marquee aggregations comprising 18 farms near Deniliquin, Hay and Coonamble and almost 54,700 megalitres of water licences in the Murrumbidgee and Murray irrigation areas.

The Deniliquin portion of the portfolio comprises about 123,000ha including landmark stations Wanganella and Boonoke as well as the Baratta, Peppin­ella, Warriston and Zara properties, alongside the world renowned Wanganella and Poll Boonoke Merino studs.

The Wanganella Station and Boonoke legacy dates back to the 1860s when George Peppin and his sons established a stud flock at Wanganella Station, then in 1873 the Peppin Brothers purchased Boonoke to form the now famed pastoral run.

At the time of buying earlier this year, ANSC chief executive Bert Glover said the investment company assessed more than 100 companies globally before committing to acquire AFA and its assets.

An aerial shot of the Boonoke woolshed and yards.

“ANSC’s central thesis is to decarbonise agriculture and enhance natural capital at scale,” Mr Glover said.

“We’ve searched for companies with assets and business models producing food and fibre whose potential we can harness – and expert teams we can work with to enhance it. That’s AFA.

“ANSC has global aspirations, and this iconic portfolio will form part of our broader plan to scale activities – and impact – across other markets.

“We know how significant these properties are, both to the ag sector and the communities which they call home.

“AFA’s bloodlines and genetics underpin around 95 per cent of Australia’s Merino flock.

“It’s a huge privilege, and responsibility. And we’re determined to secure their legacy for generations to come.”