Tasmania’s Iconic Rushy Lagoon Farm Hits the Market with $100M
Source: DairyNews.today
Tasmania’s largest farm, Rushy Lagoon, is back on the market with an expected sale price exceeding $100 million, underscoring the rising value of agricultural land in the region. Located on the state’s north-eastern tip, this 22,000-hectare property, rich in history and agricultural potential, is attracting significant interest from buyers both within Australia and abroad.
Originally purchased by the late Allan Pye, a prominent New Zealand farmer and potato industry magnate, Rushy Lagoon was acquired at auction in 1996 for $8 million. Today, the property is poised to fetch over twelve times that amount. The farm, a diversified enterprise encompassing dairy, beef, and sheep operations, also benefits from extensive irrigation infrastructure, making it a valuable asset for prospective buyers.
Peter Ryan of RMS Advisory, one of the agents overseeing the sale, remarked on the growing interest from potential buyers, noting the farm’s iconic status. "Rushy Lagoon is not only a Tasmanian landmark but also a renowned property across the Australian agricultural sector," he stated. "It’s a property with a legendary reputation, drawing inquiries from those with the resources to make such a significant purchase."
Rushy Lagoon previously hit the market in 2017, with an anticipated sale price of $70 million; however, it was withdrawn after failing to meet this target. Since then, plans have been put forward for a wind farm development on the property, which could provide a substantial additional revenue stream. "If the wind farm project materializes, the rental income from this venture could be a game-changer for Rushy Lagoon," Ryan added, emphasizing that while the plan is not yet finalized, it remains a possibility.
The interest in Tasmanian farmland, including Rushy Lagoon, reflects broader market trends. According to Michael Warren, director of Nutrien Harcourts Tasmania, the state’s agricultural land is among the most expensive in Australia, with the median price per hectare now surpassing $20,000—more than double the national average of $9,500 per hectare. In sought-after areas such as the Northern Midlands, mixed-farming properties with access to water can command prices upwards of $40,000 to $60,000 per hectare.
Beyond traditional agriculture, investors are increasingly valuing farmland for its carbon and renewable energy potential. "Many buyers are factoring in carbon audits and renewable energy opportunities when considering land investments," Warren explained. "These considerations were relatively uncommon five years ago, but today they play a key role in decision-making, especially for corporate and institutional investors."
Tasmania’s abundant rainfall, productive soils, and well-established irrigation systems continue to make it an attractive location for farming. However, environmental considerations are now becoming equally important as buyers seek properties that align with sustainability objectives. Renewable energy projects, in particular, are transforming the agricultural land market in Tasmania, with wind and solar developments increasingly factored into property values.
Rushy Lagoon is not the only significant Tasmanian farm drawing attention. The Woolnorth Dairy, situated in the state’s far north-west, has also attracted interest since its listing earlier this year. The remaining section of what was once Australia’s largest dairy operation was put up for sale by Chinese businessman Xianfeng Lu after he lost a major milk contract with New Zealand’s Fonterra. Similar to Rushy Lagoon, the Woolnorth property may benefit from the potential for renewable energy development, adding another layer of value to the prospective sale.
Peter Ryan of RMS Advisory, one of the agents overseeing the sale, remarked on the growing interest from potential buyers, noting the farm’s iconic status. "Rushy Lagoon is not only a Tasmanian landmark but also a renowned property across the Australian agricultural sector," he stated. "It’s a property with a legendary reputation, drawing inquiries from those with the resources to make such a significant purchase."
Rushy Lagoon previously hit the market in 2017, with an anticipated sale price of $70 million; however, it was withdrawn after failing to meet this target. Since then, plans have been put forward for a wind farm development on the property, which could provide a substantial additional revenue stream. "If the wind farm project materializes, the rental income from this venture could be a game-changer for Rushy Lagoon," Ryan added, emphasizing that while the plan is not yet finalized, it remains a possibility.
The interest in Tasmanian farmland, including Rushy Lagoon, reflects broader market trends. According to Michael Warren, director of Nutrien Harcourts Tasmania, the state’s agricultural land is among the most expensive in Australia, with the median price per hectare now surpassing $20,000—more than double the national average of $9,500 per hectare. In sought-after areas such as the Northern Midlands, mixed-farming properties with access to water can command prices upwards of $40,000 to $60,000 per hectare.
Beyond traditional agriculture, investors are increasingly valuing farmland for its carbon and renewable energy potential. "Many buyers are factoring in carbon audits and renewable energy opportunities when considering land investments," Warren explained. "These considerations were relatively uncommon five years ago, but today they play a key role in decision-making, especially for corporate and institutional investors."
Tasmania’s abundant rainfall, productive soils, and well-established irrigation systems continue to make it an attractive location for farming. However, environmental considerations are now becoming equally important as buyers seek properties that align with sustainability objectives. Renewable energy projects, in particular, are transforming the agricultural land market in Tasmania, with wind and solar developments increasingly factored into property values.
Rushy Lagoon is not the only significant Tasmanian farm drawing attention. The Woolnorth Dairy, situated in the state’s far north-west, has also attracted interest since its listing earlier this year. The remaining section of what was once Australia’s largest dairy operation was put up for sale by Chinese businessman Xianfeng Lu after he lost a major milk contract with New Zealand’s Fonterra. Similar to Rushy Lagoon, the Woolnorth property may benefit from the potential for renewable energy development, adding another layer of value to the prospective sale.
