News that iconic Cobungra station has sold for $35 million has farmers in the area feeling they could win lotto, or scratching their heads.
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The property was earlier bought from the Richardson family by BCR Investments and others for a reported $6 million. It was sold 10 years later to Melbourne businessman Mark Suhr and others for an undisclosed figure. Locals believe it was around the $10 million mark.
Extensive improvements have been made, including a magnificent home with a Paul Bangay garden. Cattle working yards have been upgraded and covered.
When the property was sold about 17 years ago it had a rated carrying capacity of 2000 breeders on 6500 hectares. Now it is rated to carry 4000 breeders.
This is semi-alpine country which has a growing season from late September to about May. During the other months, temperatures are too low to allow pasture growth and sometimes it snows. The property's operation is assisted with alpine grazing rights over 24,500 hectares that can be utilised between when the snow melts and sets in again.
The property has been bought by the exchange-listed Rural Funds Group and will be leased by wagyu producer Stone Axe Pastoral, a venture between Australian Matthew Walker and Moelis, a New York investment bank.
Local gossip is that Gina Rinehart was interested during the marketing stage but decided not to proceed.
A former manager said it was a very challenging enterprise with limited pasture growth in a defined short season. He said he was surprised carrying capacity had been doubled, which could have come from large scale pasture improvement. Also, management around heavy snowfalls is an issue, as in the 1990s a falls of one metre followed a shocking drought.
WATER QUESTIONS
Before we get too carried away about bringing water from the north to central and southern areas, a number of monumental impediments have to be addressed.
The ALP and Greens have a no dam policy; also, could these dams be constructed to hold rains of the magnitude that fell in the past weeks? Take for instance the dam on the Ross River, which was severely compromised.
It's fine when there is ample water, however torrential is not always the norm. If dams were built, those in the catchment would want water for themselves, and environmentalists and recreational interest would be lining up.
Putting aside the cost of pipelines, pumping and water would have to be issues and channel location would face the hurdle of endangered, frogs, newts and lizards. Throw in koalas, wombats and echidnas.
A major issue would be the impact on indigenous culture. There are sacred sites, fauna and rocks. It is hard enough to build a highway, let alone the infrastructure for project of this magnitude.
Some would say stuff them, but it does not work that way. When the water reaches its destination, it would be expensive. Probably too expensive for agriculture, as we are now seeing in the Murray and Goulburn valleys.