The establishment of a State Farm at Kairi by the Queensland Government was announced in May 1911. Fifty acres of land was initially cleared for the farm, which was to focus on dairying and pigs initially. Drummond MacPherson was transferred from his role as manager of the state farm at Biggenden to manage the Kairi State Farm. By March 1912, the state farm was growing maize, cow pea, rhodes grass, pumpkins, sugar melons and cucumbers. The State Farm closed in 1929, apart from the piggery which operated for a few years longer. From 1929, the farm was operated by commercial interests.