An agricultural investment fund has paid around $25 million for 14,300 hectares of freehold land in the Northern Territory's Douglas Daly region, with plans to expand its dryland cropping operation.
Australian Agricultural Growth (AAG) Partners purchased Blackbull Station, 250 kilometres south of Darwin, according to documents from the NT Land Titles Office.
Several thousand head of cattle included in the sale puts the total price around $30 million.
The price for the land, around $1,755 per hectare, is thought to be a record for a non-horticultural property in the NT.
In an information paper circulated to potential investors before the purchase, AAG Partners said Blackbull Station "could become one of Australia's most profitable cotton enterprises".
"The asset fits perfectly with AAG Partners' investment thesis … enabling the asset to be actively converted from lower-value grazing land to high-value cropping land, producing over 4,000 hectares of cotton crop per annum, with the asset expected to be generating significant revenue by the end of the first year," the paper said.
"By converting large areas of the asset to dryland cotton production, the fund will exploit the underlying rainfall dynamics of Australia's north."
Moree-based Customised Farm Management will manage the ongoing cotton development at Blackbull, which this season is harvesting around 800 hectares of the crop.
Agent Andy Gray said there was a lot of interest in Blackbull from southern agricultural businesses looking for land.
"I'd suggest that it is very much on the back of the strong desire to get into the top end of Australia, under this good rainfall, on the good soil, on this freehold land to grow cotton," he said.
The sale of Blackbull included an 8 gigalitre groundwater extraction licence and three centre-pivot points and a towable pivot.
The property was once owned by managed investment scheme Great Southern that, after its collapse, sold Blackbull to Territorians Peter Maley and Troy Angus in 2013 for $4.8 million.
Top End cotton harvest begins
Cotton harvesting began in the Northern Territory this week, with around 8,000 hectares expected to be picked this season.
Bruce Connolly from Tipperary Station said a below-average wet season for some parts of the Top End would impact yields.
"The rainfall hasn't been quite as helpful as it could have been, so yields are generally down on what they could be," he said.
"But overall, the general feeling in the industry is one of confidence, and the yields that they are getting — even with the lower rainfall — are relatively encouraging."
Cotton prices recently hit $1,000 per bale, which has not been seen since 2011.
NT growers will again have to truck their cotton thousands of kilometres to be processed in Queensland, after delays in completing the new gin at Katherine.
Mr Connolly said the high price of diesel would only add to the already expensive cost of trucking cotton to Queensland.
"It's going to be a hit that the farmers take, but the current price for cotton is going to offset that somewhat," he said.
"I would like to think that everyone would be in a pretty strong position to handle [the transport costs], but we certainly don't want to be having to do it year after year."
