JHW Paterson: Huge family gets bigger despite interest rate rises

James Paterson’s huge family business was going gangbusters, so when a neighbouring farm became available, he didn’t hesitate to acquire it.

For some buyers, the growth in NSW farm sales has been spurred by low interest rates, for others high commodity prices.

But two farming families said their recent land purchases were opportunities too good to refuse.

James Paterson, 30, returned a decade ago to the helm of the family business, JHW Paterson Pastoral, a 70,800ha cattle breeding and fattening enterprise in Victoria’s Western District and the NSW Riverina.

Wagyu cattle in JHW Paterson & Son's Hell's Gate feedlot near Balranald. Picture: Supplied

In the first year he planted 130ha of cotton, which expanded to 1450ha in the last season, also expanding the business’ feedlot, from about 5000 head in 2012 to a license for 25,000 now.

So when a neighbouring 20,000ha property in the NSW Riverina – Kooba Ag, one of Australia’s largest irrigated cotton operations – was put on the market for sale, James didn’t hesitate to snap it up to grow the business.

Even though it meant a bank loan for the $63 million price tag.

“There is about 15km of boundary with our existing property,” said James, 30, who runs JHW Paterson Pastoral with his 86-year-old grandfather Gordon.

“So it brings most of our Riverina land into one holding. It was a must.

“It has given us more river access, increased our extraction points along the Murrumbidgee and we also like to grow our heifers on virgin country every year, get our first calf in the Riverina and then send them for after weaning to the Western District.”

The Kooba Ag property, settled in May, is across four titles, with more than 7000ha developed to laser levelled row crop, 108ha to flood irrigation and surface and groundwater entitlements and on-farm water storage of nearly 23,000 megalitres.

“We probably would have preferred to buy 12 months ago when interest rates were a bit better. We do find it concerning where interest rates are going.

“But we know the next couple of years the catchment in the hills is at 100 per cent and spilling. We’ll grow cotton seven out of 10 years and get a good crop off it.”

Across in Tamworth, Jack’s Creek managing director Patrick Warmoll confirmed they were one of 12 local farming families to acquire a slice of a 16,750ha portfolio of land on NSW’s Liverpool Plains, sold by Shenhua Watermark Coal in a total deal worth about $120 million.

Patrick said following settlement in May, they secured 4900ha, which would enable them to run about 3500 cattle year-round for their brand that processes and markets grain-fed Wagyu and Black Angus and exports to more than 30 destinations.

“I’m the third generation in our business and given the property was next door it was a good opportunity to increase our land holdings and continue a generational story,” Patrick said.

“And you always want the farm next door.”