{"id":523724,"date":"2026-03-07T02:11:13","date_gmt":"2026-03-07T02:11:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/523724\/"},"modified":"2026-03-07T02:11:13","modified_gmt":"2026-03-07T02:11:13","slug":"decision-on-sale-of-tasmanias-largest-farm-rushy-lagoon-expected-soon","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/523724\/","title":{"rendered":"Decision on sale of Tasmania’s largest farm Rushy Lagoon expected soon"},"content":{"rendered":"

The Foreign Investment Review Board (FIRB) is expected to finalise its decision on the sale of Tasmania’s largest farm to a British forestry investment firm next week.<\/p>\n

It has sparked concerns from nearby landowners about the potential conversion of agricultural land into pine plantations.<\/p>\n

The FIRB had requested more time to review the application by Gresham House to buy the 22,000-hectare Rushy Lagoon property in the state’s north-east, owned by the Pye family.<\/p>\n

The deal is expected to exceed $100 million.<\/p>\n

Rushy Lagoon is a sprawling dairy, beef and cropping property about 140 kilometres north-east of Launceston.<\/p>\n

\"A<\/p>\n

Rushy Lagoon is a sprawling 22,000-hectare property in the state’s north-east. (Supplied: RMS Advisory)<\/p>\n

With 17 kilometres of Bass Strait frontage, it runs thousands of beef and dairy cattle, supplying milk to Fonterra.<\/p>\n

But the farm’s potential new British owners are looking beyond just milk and beef to provide returns to their investors.<\/p>\n

Large scale tree plantings are also planned.<\/p>\n

Converting Rushy into pines<\/p>\n

Gresham House is the UK’s largest forestry asset manager, overseeing almost $7 billion in forestry and natural capital assets.<\/p>\n

Part of the company’s long-term strategy is to broaden its international footprint.<\/p>\n

This includes tapping into Australia’s Nature Repair Market, earning biodiversity credits for carbon projects and drawing an income from growing pines for timber.<\/p>\n

The size of Rushy Lagoon could provide the scale to do this.<\/p>\n

\"a<\/p>\n

Mature pine trees on a farm at Waterhouse in north-east Tasmania. (ABC News: Laurissa Smith)<\/p>\n

But some locals are concerned that planting pines is not the best use of agricultural land.<\/p>\n

One of those is St Helens beef farmer and former Liberal MP John Tucker.<\/p>\n

“You can’t eat pine trees, that’s a big one,” he said.<\/p>\n

Mr Tucker knows the area well.<\/p>\n

He runs Musselroe Estate, which neighbours Rushy Lagoon on its eastern boundary.<\/p>\n

\"a<\/p>\n

Farmer and former state Liberal MP John Tucker is concerned about the potential conversion of agricultural land into pine plantations. (ABC News: Laurissa Smith)<\/p>\n

Mr Tucker’s relatives helped develop Rushy Lagoon, before it was sold to the British Tobacco Company in the 1960s.<\/p>\n

“Rushy Lagoon used to run 55,000 sheep and 8,500 cows, so it was a pretty productive property back in the day,” he said.<\/p>\n

“I think it’s got a lot of potential for livestock farming out in that area.<\/p>\n

“A lot more potential in my opinion than trees.”<\/p>\n

\"a<\/p>\n

Rushy Lagoon runs thousands of head of cattle. (ABC News: Laurissa Smith)<\/p>\n

Dorset Council mayor Rhys Beattie agrees.<\/p>\n

“We’re not against forestry,” he said.<\/p>\n

“But changing large scale agricultural land into forestry, there’s no checks to keep it under control or to see if any value is lost to the country in food security.”<\/p>\n

Several properties in the far north-east were home to large scale eucalyptus nitens plantations in the past, but were caught up in failed Managed Investment Schemes (MIS).<\/p>\n

“We’ve seen this before, we had Great Southern come into the area and plant a lot of trees,” Mr Tucker said.<\/p>\n

“We saw how that finished up and I just hope this won’t turn into another MIS scheme.”<\/p>\n

Mammoth Tassie farm for sale<\/a><\/p>\n

Renewable energy and carbon potential feature more prominently on wishlist for investors in farmland.<\/p>\n

Ian Sauer, president of the state’s peak farm body TasFarmers, said the organisation is not opposed to plantations on farms.<\/p>\n

But he said it is concerned about the wider implications for the local area if livestock operations on Rushy Lagoon were scaled back significantly.<\/p>\n

“Whether that’s employment, cartage contractors, less money floating around,” Mr Sauer said.<\/p>\n

“The processors that process the cattle and milk, there’s a flow-on effect there.”\"a<\/p>\n

Ian Sauer, president of Tas Farmers, says the agricultural uses of Rushy Lagoon have flow-on effects into the local economy. (ABC Rural: Laurissa Smith)<\/p>\n

Mr Sauer said there were also unconfirmed reports the federal government’s Clean Energy Finance Corporation has been involved in the deal.<\/p>\n

The CEFC was contacted for comment.<\/p>\n

Magnet for investors<\/p>\n

It is not the first time Rushy Lagoon has attracted major investor interest.<\/p>\n

Over the decades, a raft of major investors and local entrepreneurs have been drawn to the property for its agricultural potential.<\/p>\n

This includes pioneering Scottsdale potato farmer Bert Farquhar.<\/p>\n

He purchased the property from Cascade Brewing Company for $10 million in 1986, a record price paid for a Tasmanian farm by an individual.<\/p>\n

Mr Farquhar had grand visions for Rushy Lagoon and developed an extensive irrigation scheme, which included more than 180 kilometres of channels to support future dairy and livestock production.<\/p>\n

\"A<\/p>\n

Tasmanian agricultural land has long been much sought after, but is increasingly valuable for renewable energy potential. (Supplied: RMS Advisory)<\/p>\n

In 1996, New Zealand farming magnate, the late Allan Pye, paid $8.6 million for the property at auction and developed several dairies.<\/p>\n

He put Rushy Lagoon up for sale in 2017.<\/p>\n

It was expected to fetch $70 million, but was later withdrawn from the market.<\/p>\n

After the death of Mr Pye, his estate re-listed the property in late 2024.<\/p>\n

Green credentials<\/p>\n

Rushy Lagoon has also been earmarked for a multi-billion-dollar wind farm development managed by ACEN Australia.<\/p>\n

The project includes 210 wind turbines across sites at Rushy Lagoon and Waterhouse.<\/p>\n

The North East Wind development was declared a project of state significance in 2022, a process that allows it to be assessed by a planning commission panel, rather than through the local council.<\/p>\n

The rising value of Rushy Lagoon could reflect a wider trend in Tasmania.<\/p>\n

The state’s farmland has the highest median price per hectare in the country.<\/p>\n

\"a<\/p>\n

Tasmanian rural property consultant Max Calvert says buyers are looking at carbon projects to diversify farm income.\u00a0 (ABC News: Morgan Timms)<\/p>\n

Rural property consultant Max Calvert said a stable climate, access to irrigation schemes and productive soils are the main drawcards for buyers.<\/p>\n

But he said a farm’s green credentials feature more prominently on an investor’s wishlist.<\/p>\n

“There has been a broader market shift to some sustainability- focused investment groups,” Mr Calvert said.<\/p>\n

“As buyers do in the market, they like to explore multiple income streams and if a sustainability or carbon element to that is available, they’re going to explore it.”<\/p>\n

Gresham House has been contacted for comment.<\/p>\n

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