Security & headroom
Larkin family group · $24.6m of assets, $6.8m of debt, and the question of what is actually free
An agricultural balance sheet is four different kinds of thing. Land sits still and is worth what a valuer says. Water is traded separately from the dirt and moves with the season. Livestock breeds, dies and gets sold between one count and the next. Plant depreciates on a schedule everybody argues about. A lender takes security over all four and treats each one completely differently.
Group assets
$24.6m
4 classes · 3 valuation dates
Encumbered
$18.4m
Against $6.8m of debt
Unencumbered
$6.2m
Available
Valuations over 12 months
2
Water and one title
Every asset, and who has it
What a credit analyst asks for, in the order they ask
| Asset | Class | Held by | Value | Valued | Encumbered to | Headroom | Note |
|---|---|---|---|---|---|---|---|
| "Marrawee", 1,240 ha | Land | Family Trust | $7,440,000 | Mar 2026 | Rural lender A | $3,240,000 | Current |
| "Kelso Park", 640 ha | Land | Family Trust | $3,960,000 | Aug 2024 | Rural lender A | $1,160,000 | 2 years old |
| "Tallowin", 310 ha | Land | Super Fund | $2,480,000 | Jun 2026 | Lender D, limited recourse | $1,980,000 | SMSF — ring-fenced |
| 1,840 ML entitlement | Water | Marrawee Water Holdings | $2,300,000 | Jul 2025 | Unencumbered | $2,300,000 | Market moves weekly |
| 1,180 head, mixed age | Livestock | Larkin Grazing | $1,890,000 | Aug 2026 | Lender C | $1,280,000 | Counted 11 days ago |
| Header, 2018 | Plant | Pastoral Co | $310,000 | Aug 2026 | Lender B | $162,000 | Trading in |
| Tractors ×3 | Plant | Pastoral Co | $1,420,000 | Aug 2026 | Lender B | $180,000 | Current |
| Airseeder & bar | Plant | Pastoral Co | $680,000 | Aug 2026 | Unencumbered | $680,000 | Free |
| Crop in the ground | Crop | Pastoral Co | $3,100,000 | Aug 2026 | Rural lender A, floating | $0 | Estimate only |
| Silos & sheds | Improvements | Family Trust | $1,020,000 | Mar 2026 | Unencumbered | $1,020,000 | Free |
The header deal can be secured on the airseeder and the silos without touching a title or asking Cameron to sign anything new. Nobody worked that out, because working it out means reading four lenders' security schedules side by side.
The three that will not sit still
Water, livestock and the crop are valued on a date and wrong the next day
Water — 1,840 ML, valued Jul 2025±31%
Livestock — 1,180 head, counted Aug 2026±14%
Crop in the ground — estimate±40%
Land — three titles±4%
The water entitlement is worth $2.3m on a valuation from July last year. Allocations and the temporary market have moved twice since. It is the group's largest unencumbered asset and the number attached to it is the least reliable one on the page.
What the group could still borrow
On unencumbered security, without disturbing anything
Water entitlement$2,300,000
Airseeder & bar$680,000
Silos & sheds$1,020,000
Headroom on encumbered assets$2,200,000
Total available security$6,200,000
Less SMSF, ring-fenced−$1,980,000
Genuinely usable$4,220,000
This number takes an analyst half a day to produce by hand and is out of date the moment it is finished. It is also the first question every lender asks and the first question the client asks, and Kerrindale has never been able to answer either one in a phone call.