A dozen prime farming properties have been snapped up as part of a $200 million drive to create more timber plantations in the south-west.
Concerns have been raised about the land acquisition program across Corangamite Shire, which would see blue gums and possibly pine plantations established.
Midway - which has been planting and managing plantations in the Otway region and Green Triangle near Portland for more than 40 years - is managing the multi-million dollar program on behalf of MEAG, a subsidiary of the German-based fund manager Munich Re.
About a dozen properties have been acquired across the shire since the project started in October 2022, most of which were cattle and sheep grazing properties. Some were dairy farming operations.
Corangamite Shire coastal ward councillor Jamie Vogels said he was worried the program was taking "prime agricultural land" away from the shire with no economic benefit to the area.
"I'm aware, I think we all are, that significant land is being purchased (and) is putting a great deal of pressure on the local, wider community," he told the shire's August meeting.
"I'm concerned that we have businesses backed by foreign investment allocating $200 million to buy prime agricultural land in the Corangamite Shire and it's spilling out also into Moyne and Colac Otway for planting of blue gums, let alone the planting of pine trees which is also on the agenda as well.
"...This distorts the market and puts pressure on our local agricultural uses and communities and in my mind it's going to pull about $75 million per annum out of our local economy, with 25,000 acres roughly of prime agricultural land going into tree production there won't be turnover from that back to the community.
"This will lead to the loss of hundreds of jobs in the agricultural sector and the flow-on effect through our towns... will be huge.
"This action ... (is) distorting the market with no economic benefit to the shire. In the program it's running it says it will provide jobs, and my main concern for us is it will be the exact opposite."
Cr Vogels said he feared government subsidies were increasingly providing incentives for businesses to establish plantations to the detriment of traditional farming and the shire's economy.
"We need sustainable sustainability," he said.
"This is economically-flawed funding."
A Midway spokesman told The Standard the company looked "forward to constructive discussions with Cr Vogels and others in the local community about the progress the company (was) making in its plantation project".
He said Midway had engaged with all south-west councils and the state government on the land acquisition program and had constructively engaged with industry groups and local landholders.
The spokesman said the land sales had been voluntary with many farmers approaching or past retirement age and actively seeking to sell their properties to Midway.
He said the doubling of the plantation estate in the Otway region would generate additional contractor jobs in plantation management and harvest and haulage, offsetting any job impacts from farmers selling their properties in the region. The doubling of the plantation estate would also make a significant contribution to Australia's net zero emissions by 2050 commitment.
The Standard sought further information about how much money was left in Midway's kitty for further purchases, how many more properties were needed and where and how large the purchases had been. But Midway did not respond on confidentiality grounds.
