Agri group sees an encouraging year, in maiden profits

PrimeAg, which was incorporated in October, delivered a profit of $1.955 million for the eight-month period to June 30, comprising a mix of interest income, forward commodity sale mark-to-market adjustments and returns from summer crops.

The company was formed to invest in Australian rural properties, some with attached water entitlements, to take advantage of the increasing global demand for soft commodities including wheat, chickpeas, sorghum and cotton, as well as livestock products.

PrimeAg chairman and former National Farmers' Federation (NFF) president Peter Corish said prospects for this financial year were "encouraging" and were anticipated to be in line with prospectus forecasts, given reasonable seasonal conditions.

"Suitable planting rains in June enabled the planting of 10,000 hectares (ha) of dryland winter crop," Cornish said in a statement.

"Additionally, 4,800 ha of irrigated winter crop have been planted and sufficient irrigation water is available to meet the requirement of this crop through to harvest."

Corish said the company was planning 6,200 ha of irrigated and 5,500 ha of dryland summer crop plantings of mainly sorghum and cotton.