Source: The Land, 2018

Institutions and individuals investing large volumes of capital, foreign or domestic, into Australian agricultural land is not new – but good land management that also increases productivity and profitability from this investment lies in the hands of some smart local land managers.

Two Australian farmers, both with tertiary agricultural qualifications who are heavily involved in productivity gain and capital deployment, Andrew Parkes and Andrew Ordish, have forged a conduit between these investors from the late 2000s through their business, Customised Farm Management (CFM), Moree.

Andrew Parkes said they initially saw increasing property investment but wondered how investors were going to run those farms, providing a possible opportunity for their business plan.

“Investors had the capital, but not the understanding or knowledge of what assets they should buy, and how to operate them,” Mr. Parkes said.

“We recognised that opportunity and started our company.”

CFM began by partnering with a AAA-rated U.S.-based agricultural asset management company that had purchased properties in Australia.

“That experience gave us the understanding of what we had to build within a business to help satisfy the requirements of that capital being deployed,” he said.

Today, CFM manages 20 properties in Queensland, NSW, and Victoria, totalling nearly 110,000 hectares for 12 different clients, including high-net-worth individuals and institutions. The collective value of assets currently under management is almost $350 million, with CFM also participating in some ownership.

Mr. Parkes highlighted the benefits:

“Investors understand farming as a business. They focus on pushing their assets to increase returns while maintaining sustainability.”

These investors are data-driven and seek ways to enhance productivity, including development projects, irrigation upgrades, no-till farming, and growing alternative crops.

“When cost-benefit analyses are explained, they are ready to invest,” he added.

The impact of such investments includes:

• Better farm assets and investor returns.
• Benefits for local service providers and communities.

“Capital deployment uplifts farms and creates employment opportunities,” Mr. Parkes said.

In areas like Griffith, Narrandera, Darlington Point, Hay, and Hillston, foreign investments have positively impacted local economies.

“Locals often see the benefits and grow alongside these developments,” he noted.

The use of local service providers ensures that capital deployment supports community growth.



“It is rewarding to see increased productivity, local business growth, employment opportunities, and a vibrant community buzz.”