A FOREIGN company is set to make a killing selling off land it acquired via managed investment schemes.

Farm groups are fuming as critics slam the Federal Government and Great Southern receiver McGrathNicol over the sale process, which they say locked out farmers.

Canadian company Alberta Investment bought 252,000ha formerly owned by Great Southern for $415 million, or just $1650 a hectare.

It now plans to sell some of the land at a profit.

Great Southern committee of inspection member Phil Capicchiano said the events were a "national disgrace". "(Alberta) openly boast they'll be selling back out to farmers and other uses, which is what I told receivers six months ago," Mr Capicchiano said. "The Government, through its own stupidity and negligence, has a case to answer as to how it allowed that to happen.

"We lost $500 (million) to $1 billion (on the sale)."

He said farmers were effectively locked out of the sale by liquidator McGrathNicol's refusal to adopt a plan put forward by Elders, the Victorian Farmers Federation and the National Farmers' Federation to sell the land in smaller lots, therefore allowing farmers to bid.

NFF economics and policy manager Charlie McElhone said the news had "created angst" among farmers and rural groups.

He said the NFF had made representations to the Government following the Timbercorp sale, from which 92,000ha was sold to US funds manager Global Forest Partners.

"We highlighted that Great Southern was about to go through a similar sale process," Mr McElhone said. "No change has been made."

VFF president Andrew Broad said the fact Alberta intended to break up some of the land to sell was a "touch of irony". Their acquisition was the result of an "absolute fire sale", he said.

"Creditors of (Great Southern) have reason to be a bit dark - a liquidator's job is to maximise the return," he said.

"All I'm interested in is seeing the high-rainfall stuff go back to food production."

Mr Capicchiano again questioned whether the sale breached the Corporations Act.

The 650 lots are spread around the country, with more than 50,000ha in the Green Triangle.