Duxton Farms’ Wildman Lease Raises Execution and Capital Deployment Risks

Strategic Expansion into Northern Territory

Duxton Farms Ltd, Australia's only publicly-listed mixed farming enterprise, has announced a pivotal development in its investment strategy with the securing of a lease over the Wildman Agricultural Precinct in the Northern Territory. This move complements its contracted acquisition of the adjoining NT Portion 5088, collectively adding over 26,000 hectares of freehold land to its portfolio. The Wildman Precinct, owned by the Northern Territory Land Corporation (NTLC), represents a long-anticipated agricultural development zone, positioned about 130 kilometres east of Darwin.

The lease, structured for an initial eight-year term with an option to extend for four more years, involves an annual fixed payment of $328,000. Importantly, Duxton Farms holds call options to acquire the land parcels at bare land rates, adjusted for lease payments, contingent on meeting development milestones focused on broadacre cropping readiness and ultimately high-value irrigated cropping or horticulture.

Portfolio Diversification and Growth

This latest acquisition and lease arrangement significantly broadens Duxton Farms’ geographic footprint beyond its traditional stronghold in New South Wales and Victoria. The company’s portfolio now encompasses ten properties spanning 183,347 hectares, including leased and owned lands across NSW, Victoria, and the Northern Territory. With 4,067 hectares of irrigable land and 16.8 gigalitres of water entitlements, Duxton Farms is positioning itself to capitalize on the growing demand for staple agricultural commodities while mitigating regional production risks.

Chairman Ed Peter emphasised the strategic importance of the Wildman project, describing it as a "unique opportunity" that aligns with the Northern Territory government's vision for agricultural development. He highlighted the potential for substantial long-term value creation and the company’s commitment to responsible development in partnership with government bodies and traditional owners.

Investment Strategy and Sustainability Focus

Since late 2021, Duxton Farms has been deliberately shifting its investment focus from dryland cropping towards a more diversified portfolio that includes high-margin development projects. The Northern Territory, with its relatively undervalued agricultural resources and promising irrigation potential, fits this strategy well. The company plans to invest significant capital over the next eight years to develop the Wildman Precinct as a keystone project alongside Mountain Valley Station.

In addition, Duxton Farms is exploring sustainability initiatives, including biodiversity and carbon credit generation, signaling an awareness of evolving environmental and regulatory expectations. This approach could enhance the company’s appeal to investors increasingly focused on ESG criteria while supporting the Northern Territory’s agricultural economy in a responsible manner.

Looking Ahead

The Wildman Agricultural Precinct lease and adjoining land acquisition mark a transformative chapter for Duxton Farms. The success of this venture will depend on the company’s ability to meet development milestones, secure necessary approvals, and navigate the unique challenges of Northern Australia’s agricultural landscape. If executed well, this expansion could stabilize and elevate Duxton Farms’ earnings profile, diversify its commodity base, and reinforce its position as a leading mixed farming enterprise on the ASX.