A ROLLESTON cotton farm bought for $26.5m last year is set to expand with a major agribusiness body pumping $20m into the project.
Rural Funds Group, which purchased Lynora Downs back in December, has set aside $20m of $78m worth of capital raising to irrigate a further 400 hectares on the 4880-hectare property.
The $78million capital raising was to fund the purchase of two assets the company bought including the cotton farm and a major 9549-megalitre water licence allocation on the Murrumbidgee River worth $60.5m.
The property trust, which has more than $6m of assets under management, has already started developments on Lynora Downs.
Rural Funds managing director David Bryant said the cotton farm, when developed, had the opportunity to improve productivity drive and long-term income as well as asset value growth.
"At the moment we're putting in additional water storage and upgrading an existing pump station and installing a new pump station,” Mr Bryant said.
"We're going to develop some additional area for flood irrigation. We will be using a bank-less channel irrigation system and it will be an additional 400 hectares.”
Developing the additional 400 hectares will take the total irrigated area on Lynora to 12,000 hectares.
Mr Bryant said the water storage upgrades on the cotton property were nearly complete, which meant work on the new irrigation area would commence in the next month in order to be ready for planting cotton later this year.
"That, of course, is all dependant on water availability, as is the way with cotton farming, you've got to wait for the rain to come,” Mr Bryant said.
The developments taking place on the property are expected to produce two jobs.