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By Agroempresario.com
SLM Partners, a global asset manager focused on sustainable and regenerative agriculture, has released a comprehensive case study showcasing the long-term environmental and financial benefits of holistic grazing and carbon credit revenue in Australia. The findings stem from the Garrawin carbon project, part of the firm's first strategy—the SLM Australia Livestock Fund—launched in 2012 with a focus on grass-fed beef cattle production.
In 2013, SLM acquired two properties in Queensland’s Mulga Lands region, covering a total of 80,000 hectares. The land, previously conventionally managed, became the site of an ambitious regenerative agriculture program based on holistic planned grazing. More than a decade later, the results speak volumes.
“What’s quite unique about it is the time frame,” said Alessia Lenders, Head of Impact at SLM Partners. “We’ve owned this land for more than 10 years and can show what’s been happening.”
The Garrawin project stands as a rare longitudinal study of regenerative land management, offering measurable insights into the transformation of degraded land through sustainable practices. Lenders emphasized the importance of transparency, stating that data like this becomes significantly more valuable when other fund managers begin to disclose similar performance metrics.
The Mulga Lands are characterized by sandy red soils, native vegetation such as Mulga and Eucalyptus trees, and highly variable rainfall. At the time of purchase, the land suffered from conventional grazing practices that led to overgrazing, tree clearings, soil degradation, and erosion.
One common but harmful practice in the region involves pulling down Mulga trees to use as cattle feed during droughts. While it allows farmers to maintain livestock during dry periods, it significantly damages the ecosystem.
SLM responded by implementing holistic planned grazing—a technique inspired by the natural movement of wild herbivores. Cattle are kept in herds and moved frequently across paddocks, allowing for long recovery periods between grazing events. The aim: avoid returning to graze a plot until it’s fully recovered, giving perennial and nutrient-rich grasses a chance to regenerate.
The results have been substantial. Groundcover, a key indicator of soil health, increased notably under the new management strategy. In years with higher rainfall, gains of up to 8% were observed. Historical groundcover data from CiboLabs helped SLM compare land response before and after the implementation of holistic grazing.
Perennial plant cover and distribution also improved, exceeding baseline levels in 2021—even after enduring a six-year drought. By 2024, the property supported a herd of over 3,000 grass-fed cattle.
But perhaps most critically, SLM launched a carbon credit initiative in 2014 that has since generated 631,723 Australian Carbon Credit Units (ACCUs). This brought in an average annual net income of AU$800,000—more than US$500,000. “This revenue proved critical during drought periods,” reads the report.
During the 2014 drought, for example, herd sizes were reduced to zero. Carbon credit income provided essential cash flow when traditional cattle sales dried up. “As a new source of cash flows, the carbon project generated an uplift of over 33% in the asset’s valuation over a 25-year period,” the report concluded.
Lenders acknowledged that not all years were easy. Droughts pushed the team to make difficult decisions. “We’ve seen that tightening our belt during the drought paid off, and that the land really responds well now to the rain,” she said. “We have lots of grass, which is enabling us to hold a lot of cattle on the properties.”
Another project in the fund exited in 2021 with a 16% gross internal rate of return, underscoring the viability of combining environmental sustainability with financial returns.
With the SLM Australia Livestock Fund nearing the end of its investment cycle, the firm is preparing an exit for the Garrawin project, showcasing its success as both an ecological and financial asset.
SLM’s momentum doesn’t stop at Australia. In 2024, the firm’s assets under management (AUM) grew 24% to US$755 million. Its impact report for the year included 105,520 tCO₂e of carbon sequestered across its portfolio—equivalent to removing 23,000 cars from the road for one year.
Looking ahead, SLM will concentrate on expanding its Irish forestry portfolio. Backed by the European Investment Bank and the EU LIFE program, this initiative will use continuous cover forestry management to sequester carbon over decades.
With current carbon prices, SLM estimates the Irish forestry project could generate €8 million (about US$8.3 million) in carbon credits—a clear indication of the growing financial viability of natural climate solutions in the global carbon market.
The Garrawin case study offers a blueprint for how regenerative agriculture and carbon finance can go hand in hand. For landowners, institutional investors, and climate-conscious stakeholders alike, it demonstrates that with patience, science-based management, and innovative revenue streams like carbon credits, the future of agriculture can be both profitable and planet-positive.
As carbon markets mature and investor interest in climate-aligned assets grows, SLM’s example serves as a critical proof point. It highlights the necessity—and the payoff—of aligning land management with long-term ecological health.
For SLM Partners, the success of Garrawin is just the beginning.
