In 2006 VicSuper resolved to invest in a landscape redevelopment project called ‘Future Farming Landscapes’ (FFL). FFL aims to hold a portfolio of land and water assets for the purpose of generating returns from a combination of agricultural activities and innovative water leasing products. The FFL project lies between Kerang and Swan Hill in the southern part of the Murray Darling Basin (MDB), a vital food-producing region of Australia.
This investment is delivered by Kilter Pty Ltd through its FFL model which involves earning income and building capital value through investment in farmland redevelopment, improved yield productivity and the delivery of water use solutions for agriculture and the environment.
FFL aims to generate more food and fibre utilising less land, less water and less management effort. Farmlands held by VicSuper are managed to create a resilient landscape – one which can cope with variable and constantly changing conditions and climate, while enhancing productivity, providing employment opportunities and improved environmental outcomes, delivering investment returns.
The objective is a large-scale investment that improves the productivity of farmland and maintains and enhances water use efficiency and ecosystems while delivering VicSuper long-term, stable, non-correlated, inflation-protected returns.