Carbon fund buys historic Victoria cattle station, sparking land-use debate

Silva Capital, a specialist carbon-fund and asset manager, has acquired Cobungra Station, a long-standing cattle farm in Victoria’s far east, with the intention of running a carbon-credit scheme that will involve planting additional native vegetation while keeping the property operational for livestock. The purchase, cleared by the Foreign Investment Review Board, has drawn concern from residents such as local historian Dianne Carroll, who worries the historic farmland may be permanently repurposed for carbon credits.

Federal opposition agriculture spokesperson Darren Chester criticised the transaction, saying it could price out conventional farmers and set a precedent for large tracts of productive land to be diverted to subsidised carbon projects. Silva’s co-managing director Raphael Wood emphasized that similar initiatives have succeeded elsewhere in Australia, aiming to merge food, fibre and biodiversity goals. Farmers for Climate Action chief executive Verity Morgan-Schmidt supported the concept, noting it could diversify farm incomes if proper methodologies are established. The Clean Energy Finance Corporation confirmed it was not involved in the purchase, and the federal government has not yet commented.