The sale of Tasmania’s largest farm to Britain’s biggest forestry investor has been approved, opening the door for thousands of hectares of dairy and beef country to be turned into pine plantation.
Federal Treasurer Jim Chalmers has signed off on a $100 million-plus offer from the Tasmanian Natural Asset Trust, managed by UK firm Gresham House, to buy Rushy Lagoon.
The property, near Cape Portland on the state’s far north-eastern tip, has been owned by New Zealand’s Pye family since 1996.
It spans two neighbouring holdings – the 20,523-hectare Rushy Lagoon and the 1,221-hectare East Wyambi – and carries dairy and beef cattle, backed by 1,170 hectares of irrigation and 12,500 megalitres of water entitlements.
Chalmers declared the sale was in the national interest after it was assessed by the Foreign Investment Review Board (FIRB), which spent more than six months considering the application and delayed its ruling several 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,” Chalmers said.
He said the decision was in line with FIRB advice that the proposal was not contrary to the national interest and that he had carefully considered the community’s concerns.
The farm was listed for sale in October 2024, with final bids due in November 2025.
The decision has angered farmers and Coalition politicians, who argue it was pushed through while parliament was on its winter break.
TasFarmers president Nathan Cox said the sale was a major blow for Tasmanian agriculture.
“This is a disgraceful outcome for Tasmania and for Australian food security,” he said.
“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.”
A survey run by TasFarmers found 99% of respondents were against the sale.
Liberal senator Richard Colbeck said the approval raised “serious questions about transparency and national interest”.
“The approval of the sale of Rushy Lagoon is a disappointing decision that flies in the face of the concerns raised by local farmers, agricultural businesses and regional communities throughout this process,” he said.
