Three industry superannuation funds and an investment manager have raised about $200 million to invest in Australian farms.
The Catholic Superannuation Retirement Fund (CSRF), AustralianSuper, Auscoal and AMP Capital Investors will invest in the Sustainable Agricultural Fund.
"We are looking at investing in a sustainable diversified farming product," CSRF chief executive Greg Cantor said.
"It is very different from those agricultural products that have gone bust recently like Timbercorp, which appeared to be set up for tax minimisation schemes."
The fund has been developed in partnership with the Melbourne University's Land and Environment Faculty, which studies the effect of climate change on agriculture.
Assessments will be made on farms that are best able to manage climate change.
"The partnership provides us with a valuable opportunity to sit with university professors to understand the issues, rather than just working with the investment manager," Cantor said.
Farming assets that the fund will invest in include dairy, wheat, cattle and crops.
Cantor said the fund will also invest in farms that may not be able to be passed on to the next family generation.
Another industry superannuation fund, First Super, recently announced an investment in the agricultural sector and flagged intentions to purchase distressed Timbercorp assets.
