Federal Treasurer Jim Chalmers approved the sale of the Rushy Lagoon farm in Tasmania to a United Kingdom forestry investor last week.
The decision is sparking a confrontation between the federal government and the agricultural sector. Critics argue that converting productive dairy and beef land into a pine plantation undermines food security and betrays local farmers.
The property, which is the largest farm in Tasmania, covers 22,000 hectares [1]. The buyer is the Tasmanian Natural Asset Trust, identified as the largest forestry investor in the UK [1]. The sale was reportedly valued at more than $100 million [3].
According to the federal government, the sale supports a tree-growing carbon-offset scheme and forestry investment [4]. However, the project has drawn significant criticism from the farming community. Rita Panahi of Sky News Australia said the government has been accused of betraying farmers after approving a foreign purchase of the land for a carbon scheme [5].
The transition of the land involves converting existing agricultural use into a pine plantation to generate timber and carbon credits [1]. This shift has led to demands from the Tasmanian government for the Prime Minister to reverse the sale [1].
Financial involvement in the deal extends beyond the purchase price. The Clean Energy Finance Corporation has defended its $69 million role in the controversial sale [6].
Panahi said Jim Chalmers approved the purchase of the Rushy Lagoon farm, which stretches 22,000 hectares [5]. The move highlights a growing tension between national climate targets and the preservation of traditional agricultural land.
“The government has also been accused of betraying farmers after approving a foreign purchase of Tasmania's largest farm”
This approval signals a federal priority to expand carbon-sequestration infrastructure, even at the expense of active food-producing land. By facilitating the conversion of 22,000 hectares of grazing land into a pine plantation, the government is leveraging foreign investment to meet environmental targets, potentially creating a precedent for further land-use shifts across rural Australia.
