Ms Davis said that the Tasmanian Farmers and Graziers Association did not oppose foreign investment, but encouraged it within certain parameters.

"We don't like to see agricultural land alienated to other uses," she said.

"We don't believe there should be one set of [foreign investment] rules for government-owned investment companies, another for private investors and another for those countries with whom we have a free trade agreement.

"There should be one rule for all — we also favour joint ventures between Australian and foreign investors where there is to be foreign investment involved and would like clear guidelines that outline the national interest in terms of the capital value of land and the role of local management in these enterprises.

"Current concerns around the issue of foreign investment and ownership generally reflect a poor understanding of sectoral dynamics."

Ms Davis said that the level of foreign investment and ownership in agricultural land was relatively low and had not varied much in decades.

"The proposed [foreign ownership] registers and databases should be for information only and should not be used to increase regulation of investment or ownership," she said.

"Any attempt to limit foreign investment must not impact on farmers who must retain the right to sell their assets to the highest bidder - regardless of nationality.

"If there is community concern over food security or matters of national sovereignty, that is a matter for the community - and they must bear the cost of any interference in the market place.

"Australian superannuation funds have shown they will not step up to the plate to invest.

"The consequences of restricted access to funds will be limited development, fewer jobs and an industry going backwards compared to our main competitors."

That was a risk Australia simply could not afford to take, she said.