FIRB Decision Imminent for Rushy Lagoon Sale
The Foreign Investment Review Board (FIRB) is expected to finalize its decision next week regarding the sale of Tasmania's largest farm, Rushy Lagoon, to Gresham House, a British forestry investment firm. The 22,000-hectare property, owned by the Pye family, is anticipated to sell for over $100 million.
Local Concerns Over Land Use Conversion
The proposed sale has generated concerns among nearby landowners regarding the potential conversion of significant agricultural land into pine plantations. Rushy Lagoon currently operates as a large-scale dairy, beef, and cropping property with 17 kilometers of Bass Strait frontage, supporting thousands of cattle and supplying milk to Fonterra.
Gresham House, the UK's largest forestry asset manager, aims to expand its international presence. Its strategy includes participating in Australia's Nature Repair Market, earning biodiversity credits for carbon projects, and generating income from timber production. The scale of Rushy Lagoon could facilitate these plans.
Community and Agricultural Sector Statements
Local beef farmer and former Liberal MP John Tucker expressed concerns about replacing productive agricultural land with pine trees, highlighting Rushy Lagoon's historical productivity in livestock farming.
Dorset Council mayor Rhys Beattie echoed these sentiments, emphasizing the lack of checks on converting large-scale agricultural land to forestry and its potential impact on food security.
TasFarmers president Ian Sauer stated the organization is not against plantations on farms but is concerned about the broader economic implications for the local area if livestock operations at Rushy Lagoon were significantly reduced, affecting employment, contractors, and processors.
Historical and Future Investment Interest
Rushy Lagoon has historically attracted significant investor interest due to its agricultural potential. The property has seen notable sales in the past, including to pioneering potato farmer Bert Farquhar and New Zealand farming magnate Allan Pye, both of whom developed extensive irrigation schemes and dairy operations.
In addition to the current sale, Rushy Lagoon has been identified as a site for the multi-billion-dollar North East Wind farm development by ACEN Australia, which includes plans for 210 wind turbines. This project was declared a project of state significance in 2022.
Tasmanian Farmland Trends
Tasmania's farmland currently holds the highest median price per hectare in Australia. Rural property consultant Max Calvert noted that a stable climate, access to irrigation, and productive soils are primary attractions for buyers. He added that environmental credentials, such as sustainability and carbon elements, are increasingly influencing investor decisions, as buyers seek diversified income streams.