Regenerative Agriculture

‘There isn’t resistance out of principle’ from Australian superfunds to investing in agriculture, but barriers remain, says CEFC’s Heechung Sung.

CDPQ's Nicolas Leyssieux and CEFC's Heechung Sung set out how the unusual deal to establish a farmland investment platform while taking an equity stake in Gunn Agri Partners came about.

The close represents the first stage of a planned initial fundraise of A$65m, which will be used to acquire a mixed farming aggregation and water entitlements in NSW’s Southern Riverina.

The bank will make a commitment of A$10m to New Harvest’s Indigenous Impact Investment Fund, attracted by its potential to support sustainable Indigenous Australian business growth.

The firm is also gearing up to launch a venture capital vehicle that will make complimentary agtech investments.

goFARM and Nuveen Natural Capital told the Global Food Forum in Melbourne that sustainable agricultural practices were attractive to investors.

The Kilter Agriculture Fund will invest in farmland water and is targeting A$65m in a first fundraise that will close later this month.

As some individual farmers hold back on committing to decades long land use agreements, private capital portfolios can play a role in looking long-term to help the sector decarbonize.

A carbon credit with inherently questionable value is no good for the climate or the sector but it is also no good to throw the baby out with the bathwater.

The firm’s natural capital vehicle has invested in a 400ha regenerative almond project in Spain, while its carbon strategy has backed the two million ha Restore Africa initiative.