Qantas Super joins $200m responsible ag program

Qantas Super has joined Australian-owned responsible agricultural producer GO.FARM in a $200 million program to transform underutilised agricultural land in South Eastern Australia into responsible horticultural projects.

The pair say use the investment to reinvigorate underutilised land across NSW’s Riverina region, northern Victoria and other parts of Australia.

Qantas Super said that its capital investment will unlock substantial value by converting more than 5,000 hectares of land with substantial water holdings into high-yielding, water-efficient horticultural crops.

Already, AU$150 million has been allocated to two GO.FARM assets: Riverina Trust, based around Griffith in NSW, and Sandmount Farms, based in the upper Murray region.

Counting $1 billion in assets under management and overseeing 88,000ha of land, GO.FARM is a specialist responsible agricultural investor and provider of agri-expertise, water and technology. The high-conviction agricultural investor, developer and manager, works to transform underutilised farmland into higher-value, water-efficient holdings.

Andrew Spence, Qantas Super’s chief investment officer, said the investment aligns with the super fund’s values of sustainability and responsible ownership combined with strong, long-term returns.

“As agriculture specialists GO.FARM has a clear plan to drive productivity gains, responsible agricultural practices and generate returns for investors. We’re excited about what this partnership will yield for members.”

Liam Lenaghan, GO.FARM founder and managing director, said Qantas Super has made its move into the ag sector at the right time.

“Australian agriculture is set to drive returns through investments in productivity via AgTech, data analysis and transformational practice change,” he said.

“The sector has a low correlation to other assets classes and has historically performed well in periods of high inflation. It has attractive, risk-adjusted returns on land value and water, with farmland having a 20-year compound annual growth rate (CAGR) of 8.5 per cent and water entitlements a 15-year CAGR of 6.7 per cent.”

He added: “Australia is close to growing markets, with agri-exports already sitting at AU$80 billion and three billion consumers about to enter the global middle class by 2050.

“With the Australian dollar at decade lows, and unprecedented interest in climate-smart investment opportunities and demand for high-quality agri-products, there has never been a better time to invest in Australian agriculture.”