Cattle giants unlock carbon cash windfalls for investors

Maryfield and Limbunya stations together take in more 669,183 hectares (1.65 million acres).

The pair are back on the market after being sold in late 2022.

Brisbane-headquartered AAM Investment Group secured the farming and grazing rights.

Under the deal struck with North Star Pastoral and Sydney-based agricultural investment company WealthCheck, AAM's Diversified Agriculture Fund took on the grazing and farming rights of the 147,300 hectare (363,986 acre) Maryfield on the Barkly Tableland and 521,883ha (1.3 million acre) Limbunya in the Victoria River district.

Under the $175 million deal, ADAF bought about 50,000 cattle and the plant and equipment on the two holdings in its own right.

WealthCheck bought the land with a lease arrangement with AAM Investments.

Agents from LAWD say the cattle stations have already approved carbon projects and the offer "is expected to galvanise companies seeking to secure land capable of generating significant carbon credits".

The extensive grazing and finishing properties are owned by Sam Mitchell from Wealthcheck and leased by AAM Investment Group, and will be offered by LAWD for separate sale through expressions of interest closing on April 11.

The agency said Mr Mitchell has gained approval for a Human Induced Regeneration of a Permanent Ever-Aged Native Forest (HIR) carbon project across both properties.

LAWD senior director Danny Thomas said it made for a unique offering.

"This listing is a first, and with the carbon approvals in place I would anticipate a very broad cross section of interest from the market," Mr Thomas said.

"Both of the properties are currently leased on a long-term basis to an A-grade agricultural tenant meaning there is no need for the successful bidder to find a grazing solution, providing an excellent opportunity for investors to secure access to Australian Carbon Credit Units.

"It's estimated that Maryfield Station will generate 4.6 million ACCUs over a 25-year crediting period, while Limbunya Station is forecast to generate 5.8 million ACCUs over the same amount of time."

Spot prices for the most commonly available generic carbon credits and human-induced regeneration (HIR) ACCU credits crept up to around $30, on Xpansiv's environmental commodity trading platform, CBL Markets late last year.

On those numbers, Maryfield would accumulate $138m over the 25 years, and Limbunya $174m over the same period.

But carbon credits remain hard to calculate with different returns for different projects, savannah burning for instance can attract a higher return.

The stations remain profitable agricultural enterprises, the agents said.

Both stations are said to have good infrastructure, water and market access to support successful beef production as well as further cropping development opportunities.

Maryfield Station

Maryfield Station has approval to generate carbon credits under the Mataranka Springs Carbon Project.

The station, with 36km of frontage to the Stuart Highway, comprises 147,300ha with 4900ha approved for dryland cropping and a groundwater extraction licence to enhance production through irrigation.

Annual rainfall of 857mm is complemented by 29 permanent groundwater bores equipped with solar power submersible pumps reticulating water through header tanks, troughs and catchment dams.

Today operating as a beef cattle breeding, backgrounding and finishing operation with a carrying capacity of 15,000 AE, Maryfield features a finishing and distribution facility with a capacity of about 9800 head and an annual throughput capacity of more than 90,000 head

Other improvements include shedding, workshops, road train maintenance shed, airstrip, hangar, cattle yards and silos as well as residences, comprising two main homesteads and accommodation for staff and seasonal workers.

Maryfield features an extensive network of paddocks and laneways enabling efficient and timely movement of cattle and reducing helicopter mustering hours.

Limbunya Station

Limbunya Station has approval to create carbon credits under the Victoria River Carbon Project.

The station comprises 521,883ha and has a carrying capacity of 40,000AE, and is currently operating as a beef cattle breeding, backgrounding and finishing operation.

Limbunya has an average annual rainfall of 547mm with 54 permanent groundwater bores equipped with solar powered submersible pumps (powered by solar arrays) and reticulated through header tanks and turkeys' nests to a network of concrete troughs, as well as 14 catchment dams.

Stirling Creek traverses the central portion of the station and is spring fed, providing permanent waterholes..

An extensive paddock and laneway system divided into 34 main paddocks and ten holding paddocks enables the efficient movement of cattle across Limbunya Station and reduces helicopter mustering hours.

A significant portion of fence lines have been replaced in recent years.

Excellent structural improvements and operational infrastructure include machinery shedding, hay shedding, workshops, a hangar, seven sets of cattle yards and substantial residential capacity, including two main residences as well as staff and seasonal worker accommodation.

Access via the Buntine Highway gives Limbunya Station reliable access to Darwin via the Stuart Highway and Katherine

WealthCheck bought 139,200ha (343,971 acres) Conways Station near Katherine in a joint venture with Viridios Capital last year again with carbon credits part of the buying strategy.