Growth Farms Australia Celebrates 25-Years

Growth Farms Australia, the Australian farmland investment management company, was born 25-years ago this month by a group of industry leading science-driven Australian farmers.

The year was 1999 and a small group of livestock producers situated in south-eastern NSW were looking to increase their footprint in agriculture. Richard Taylor was a co-founder and remains a company director, “the 90s was a tough time,” said Richard, “and agriculture is a capital-intensive business.”

So, these likeminded producers joined forces and did what was common at that time, leasing agriculture. The notable differentiator however, is what still underpins Growth Farms Australia’s investment ethos today – to increase efficiency, productivity, and sustainability through an evidence-based advantage.

Richard Taylor speaking at the Growth Farms Australia 25-year celebration, Bombala, 28 November 2024 

Grass Farms, as the company was first known, differentiated themselves in two key ways. First, they gave land-owners comfort that the land would be looked after by putting it in the leasing contract. “Leasing had a bad reputation at that time,” said Richard, “looking after the land wasn’t always a priority to leaseholders because a lot of these practices take a long-time to show through to the P&L. But it’s crucial to take a long-term approach.” They did this by applying what is essentially ESG principles into farming practices, using the same evidence based approach when it comes to natural capital protection and development.

The second differentiator was to offer a management contract to enhance sustainable long-term productivity. “We also backed ourselves by linking the management fee to farm profitability,” said Richard, “this management contract-side of the business took-off.” As Grass Farm’s reputation established the team attracted clientele ranging from retiring farmers, city people wanting to invest in Agriculture and overseas investors. As the business model grew to building agricultural portfolios, and the same evidence-based research was applied to purchasing farms. As the commodity range expanded from being just livestock producers to irrigation and cropping, the name was changed to Growth Farms Australia. Today, the company holds more than $750 million funds under management, 45 farms, and has 16 clients being both institutional and family offices.

“Evidence still underpins everything we do,” said Richard, “that’s our comparative advantage. Knowing how to adapt the science to the farming system. It is one thing to understand the research but it is not always apparent how to utilise that in their own farming system. We employ rigorous modelling on production and financial outputs and we do this over a range of seasonal scenarios.”

Further to this company’s roots being so steeped in agriculture there has also been a recognition and application of investment management principles as Growth Farms Australia has gained a track record in institutional investment by reputation. The executive and board all comprise of members with reputable professional funds management experience, reporting and accountability. Resulting in transparent and detailed budgeting and reporting processes.

But what is harder to find is a company with such a long history of demonstrable out-performance in managing farms literally built from the ground up. “This is the company’s strength,” said CEO Martin Newnham, “the company was created from experienced and qualified farmers who saw investment opportunities out of enhancing efficiencies in the agriculture first. As opposed to investment decisions being made in a city boardroom to expand into the agriculture sector.”