Duxton Farms (ASX:DBF) agreed to offload the majority of its Kentucky property to Alkira Farms "on a vacant possession" basis for AU$38 million, according to a Thursday filing with the Australian bourse.

The assets include 6,020 hectares and 48 megaliters of stock and domestic water entitlements, per the filing. It will retain the remaining 423 hectares and 1,463 megaliters of Jemalong Irrigation General Security surface water on site.

Settlement is expected in the next two weeks. Proceeds will be used to pursue investment opportunities, reduce debt, and cover distributions to shareholders.

Duxton Farms' shares were up 2% in recent trade.