The sale of Tasmania’s largest single farming property, Rushy Lagoon, to a British investment firm has been approved by the Federal Government, sparking dismay from local farming and council representatives.

Federal Treasurer Jim Chalmers signed off on the deal, which followed a recommendation from the Foreign Investment Review Board (FIRB), according to reports in the Tasmanian Country newspaper. The sprawling 22,000-hectare property in the state’s far north-east has been sold by the estate of the late New Zealand farmer Allan Pye, who had owned it since 1996.

The buyer is the Tasmanian Natural Asset Trust, which is managed by Gresham House, the United Kingdom’s largest forestry asset manager, as reported by Tasmanian Country and other outlets. The sale price is believed to be more than $100 million.

The new owners plan to convert the historic beef and dairy farm into a large-scale pine and timber plantation. Treasurer Chalmers stated the project is expected to create over 190 jobs and was approved as it was not contrary to the national interest. He acknowledged it was a “very difficult, on balance call” after a rigorous process and extensive consultation.

However, the decision has been met with strong opposition from agricultural groups. TasFarmers, the state’s peak farming body, described the outcome as a major blow. “This is a disgraceful outcome for Tasmania and for Australian food security,” TasFarmers president Nathan Cox told the media. The group had previously raised concerns about the transparency of the sale process and the conversion of productive agricultural land to forestry.

Concerns were also raised at a local level. Dorset Council mayor Rhys Beattie told the Tasmanian Country newspaper he was “really disappointed” and worried about the future. He questioned the long-term employment benefits, noting a potential 25-year gap between planting and harvesting the trees.

Rushy Lagoon is a significant landholding, currently operating as a dairy, beef, and cropping facility. The property was placed on the market in October 2024. The FIRB assessment process was extended several times due to the deal’s complexity and public interest.

More on this story can be found at ABC News.