Property profile: Comanche

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Comanche is a cattle breeding and backgrounding property acquired by the Rural Funds Group (ASX: RFF) in July 2018. It is located approximately 65km west of Rockhampton, central Queensland with frontage on the Fitzroy River.

The region is recognised as one of the Australia’s premier beef-producing regions, supported by fertile soils, favourable land types and a subtropical climate. Cattle enterprises in the region are primarily focused on breeding and backgrounding and include a mix of dryland cropping of cereals and fodder and irrigated areas located along major watercourses.

Prior to leasing the property, Comanche was operated by Rural Funds Management (RFM). RFM implemented a substantial development program to drive productivity improvements that saw the carrying capacity increase from 2,850 adult equivalent (AE) to 4,500 AE.

Developments

Comanche comprises highly productive soils that support extensive cattle pastures. However, when acquired in 2018, the property lacked adequate irrigation infrastructure and water points. As cattle generally graze no more than two kilometres from a water source, limited access can lead to overgrazing. To maximise pasture utilisation, RFF installed an additional 30 water points, incorporating remote monitoring technology on key sites to improve efficiency and reduce labour requirements.

RFM also expanded dryland cropping at Comanche with the development of approximately 500 ha for forage crops, including oats, lablab and forage sorghum, to support cattle weight gains and reduce seasonal feed gaps. To fully utilise the property’s 864 ML water entitlement from the Fitzroy River, additional irrigation infrastructure was installed. Major upgrades included a new pump station, recommissioning of an existing 88-hectare centre pivot, and the installation of three new large pivots, increasing the total irrigable area to approximately 280 hectares.

These upgrades support higher and more reliable beef production, sustainable year-round output, and increased profitability and asset value for the lessee.

Lease

Comanche was leased to Australian Agricultural Company (ASX: AAC) in May 2022 for 10-years. AAC is Australia’s oldest, continuously operating company in Australia and are the largest integrated cattle and beef producer, specialising in grain fed and wagyu beef production. AAC owns and operates Australia’s largest cattle herd with around 433,000 head spread over 6.5 million hectares of properties across Queensland and the Northern Territory. Comanche is one of three properties which AAC lease from RFF.

Conclusion

Improved productivity is a driver for higher profitability and contributes to higher valuations. As a result of the productivity improvements that RFF deployed, the carrying capacity on Comanche has increased, as has the property’s value.

Comanche demonstrates RFM’s capability to deliver farm productivity initiatives, increasing both cattle carrying capacity and asset value through targeted development activities.