A group of investors, including UK forestry fund Gresham House, has bought Tasmania’s largest farm, a 53,000ac land mass in the Australian state.
Currently in grass and used for grazing cattle, Rushy Lagoon is split into two blocks.
The farm has an irrigated milking platform on 1,700ac and has an estimated carrying capacity 85,000 dry sheep equivalents.
When put up for sale, it was stated by auctioneers that the farm has favourable climatic conditions, with an annual average rainfall of around 747mm.
“Land classes make the properties conducive to a range of agricultural pursuits, including dairy, sheep, beef and cropping activities (potatoes, cereals, poppies, hemp, carrot seed, oilseed and legumes),” LAWD, the company which handled the sale, said.
The farm also comes with substantial water entitlements of 12,548 megalitres and on-farm water storages, with an existing permit to construct an additional 2,500 megalitre dam.
Gresham House
Now, the Tasmania Natural Asset Trust, an afforestation and natural capital platform, has bought the land. It is managed by Gresham House Asset Management.
Australia’s Clean Energy Finance Corporation (CEFC) and Aviva Investors have invested in the property, which cost north of AUS$100m (€60m) to acquire.
“The pioneering project will combine commercial softwood plantations on low-productive land with large-scale conservation and ecological restoration and sustainable grazing,” the CEFC said.
“This is expected to provide a major boost to Tasmania’s forestry industry.
“The radiata pine trees produced by the project are expected to be processed locally by Tasmanian-based sawmills and supplied into the Australian market.
"This will alleviate some of Tasmania’s wood supply pressures and help divert harvesting away from native forests,” it said.
CEFC head of natural capital Heechung Sung said: “This critical investment converts degraded farmland into a production model that will boost the Australia’s forestry industry, create local jobs, support sustainable timber production, introduce sustainable grazing and protect the unique environment.
“It is a demonstration of the power of institutional capital to drive economic development for regional communities while also supporting decarbonisation and positive environmental outcomes.”
Farmer reaction
TasFarmers, the group representing Tasmanian farmers, has slammed the sale stating that it has sparked fresh concerns over food security, transparency and the future of productive farmland in Tasmania.
It said the deal clears “the way for 22,000ha of prime dairy and beef country in the state’s northeast to be locked up under a pine plantation”.
TasFarmers president Nathan Cox said the decision was a betrayal of Tasmanian agriculture and a breaking of the social contract between government and the Australian people by greenlighting the use of taxpayer money against Australian farmers.
“This is a disgraceful outcome for Tasmania and for Australian food security,” Cox said.
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