Breaking: Sale of Tasmania's biggest farm to UK forestry investor approved

The sale of Tasmania's biggest farm to the UK's largest forestry investor has been given the green light.

Federal Treasurer Jim Chalmers agreed to the $100 million plus offer from the Tasmanian Natural Asset Trust, which is managed by the UK's Gresham House, to buy Rushy Lagoon.

The sprawling property, near Cape Portland, on the state's far north-eastern tip, has been owned by New Zealand's Pye family since 1996.

It comprises of two contiguous properties — the 20,523-hectare Rushy Lagoon and 1,221-hectare East Wyambi.

Mr Chalmers declared the sale, which would lead to a huge, new pine tree plantation, was in the national interest after it was vetted by the Foreign Investment Review Board (FIRB).

The FIRB has been reviewing the Gresham House application for more than six months, pushing back its final decision multiple times.

"This was a very difficult, on balance call and it follows a rigorous process and extensive consultation that took account of all relevant considerations, including economic, environmental and other national interest issues," Mr Chalmers said.

"My decision is entirely consistent with the advice of the Foreign Investment Review Board that the proposal is not contrary to the national interest.

"This decision was not taken lightly and I respect and take seriously the community concerns expressed about the sale of this property."

But farmers and Liberal senator Richard Colbeck were cynical of the process, as the often-delayed FIRB decision was released during federal parliament's six-week winter break.

"The Albanese government has used the cover of the winter parliamentary recess to approve the sale of Rushy Lagoon after months of delay, stonewalling and a complete refusal to be transparent with the Australian public," Senator Colbeck said.

"My concern has never been foreign investment in itself. My concern has been that the proposed purchaser was reportedly able to benefit from support associated with the Clean Energy Finance Corporation, creating market distortion that disadvantaged other potential buyers and undermined confidence in Tasmania's agricultural land market."

Advocacy body TasFarmers said the sale meant "22,000 hectares of prime dairy and beef country" would be "locked up under a pine plantation".

TasFarmers president Nathan Cox said Mr Chalmers' decision was a "betrayal of Tasmanian agriculture and a breaking of the social contract between government and the Australian people by greenlighting the use of taxpayer money against Australian farmers".

"This is a disgraceful outcome for Tasmania and for Australian food security,"

he said.

"Rushy Lagoon has fed Australian families for generations.

"Today, the federal government has broken its covenant with the Australian people by agreeing to turn productive farmland into a monoculture pine plantation so a foreign investment fund can tick a carbon abatement box."

"Treasurer Jim Chalmers has allowed the use of taxpayer funds in this deal, and kept quiet on it for months, on a decision which has been delayed through FIRB no fewer than seven times, and then dropped it the moment parliament rose for a six-week winter break.

Rushy Lagoon to become 'pioneering project', buyer says

In a statement, Gresham House and partners CEFC and Aviva Investors said its "pioneering project will combine commercial softwood plantations on low-productive land with large-scale conservation and ecological restoration and sustainable grazing".

"This is expected to provide a major boost to Tasmania's forestry industry."

"The radiata pine trees produced by the project are expected to be processed locally by Tasmanian-based sawmills and supplied into the Australian market. This will alleviate some of Tasmania's wood supply pressures and help divert harvesting away from native forests.

"It is expected to stimulate the local economy, creating jobs for contractors, sawmill operators, field surveyors and planting crews."

Part of the company's long-term strategy is to broaden its international footprint.

This includes tapping into Australia's Nature Repair Market, earning biodiversity credits for carbon projects and drawing an income from growing pines for timber.

Rushy Lagoon's dairies already shut

The massive irrigated livestock and cropping farm was put on the market in October 2024.

It was a drawn-out campaign, with expressions of interest closing in November 2025.

Rushy Lagoon's two remaining dairies were closed in the middle of June, in anticipation of the sale going through.

It was supplying Fonterra and, more recently, Lactalis-Mainland Dairy with roughly six million litres of milk annually.

The last of the property's 1,000 dairy cows were shipped to Gippsland in Victoria in June.

Its 3,500 head of beef herd remains on the farm; however, the property has been significantly understocked.

LAWD and RMS advisory, the firms handling the sale, promoted that Rushy Lagoon had the capacity to run 85,000 sheep.

Historically, it has run 8,500 beef breeders and 4,000 dairy cows across its three dairies.

Agents also advertised that Rushy Lagoon could generate additional income from proposed wind farm developments, sand mining royalties and carbon offset payments.

They suggested further investment in pasture improvement, irrigation and stock water would significantly increase its capacity to run more livestock.

Tasmania has been a target for foreign investment

Foreign investment in Tasmanian farmland is not new, but it is growing.

According to the 2024-25 Register of Foreign Ownership of Australian Assets report, 24 per cent of Tasmania's agricultural land is foreign-owned, covering 362,000 hectares.

The report shows the United Kingdom owns the most agricultural land in Australia at 7.6 million hectares, followed by China and Canada.

Offshore companies have long been drawn to Tasmania for its high rainfall, irrigation capacity and fertile soils.

And it is not surprising that big deals have attracted plenty of political and public scrutiny.

In 2016, Chinese-backed Moonlake Investments outbid two Australian companies, paying $280 million for the Van Diemen's Land Company.

At the time of the sale, it was Australia's biggest dairy, with 25 farms milking around 18,000 cows in Tasmania's far north-west corner.

But the business was troubled from the outset.

Financial difficulties, mass resignations, animal welfare allegations and the loss of a major milk contract led Moon Lake, rebranded as Van Dairy Limited, to carve up and sell the property.