Permanent Crops

The fund, which has invested in water rights and almonds through the Brisbane-based manager, is monitoring the situation due to potential reputational risk.

The investment comes as the $9bn Sacramento pension earmarks up to 30% of an increased real assets portfolio for ag and timber by 2020.

The Brisbane-based firm, which was part of a failed Chinese-led bid for S Kidman & Co, has seen ‘continuing interest’ from investors in unlisted assets.

The latest NCREIF Australian Farmland Index, which splits annual and permanent cropland for the first time, shows ag returns Down Under continuing to outperform the US.

After closing a $300m debut fund last summer, the acquisition of Universal Irrigation marks the third such deal for the West Coast midstream specialists.

The manager of ASX-listed Rural Funds Group has bought cotton and cattle properties months after securing A$150m through an equity raise.

The Rhode Island State Investment Commission has backed the San Francisco-based firm, which is targeting up to $700m for a strategy blending higher-risk greenfield developments and more stable, lower-returning properties.

Prices for both water entitlements and allocations are at record levels. Investors rejoice, but cotton, rice and dairy producers are feeling the squeeze.

AgIS's $35m reported acquisition of a Californian winery suggests the jury is still out on the right capital structure for the wine business.

Chief executive Paul Pittman tells Agri Investor the sales are unconnected to a 40% drop in share value and remains opposed to divesting the REIT's portfolio in one block.