But the buy-back does meet the NFF’s stated requirement that any water purchase must be from willing sellers.

Because of the size of the purchase, however, the NFF is calling on the government to answer three questions:

• What specific community study has been undertaken to ascertain the impacts of this purchase on affected regions and communities?

• In those affected communities, what adjustment measures is the Government proposing to assist?

• With such a large water buy-back, once the stated environmental outcomes have been achieved, what options are available to farmers to access any excess water for production?

With the drought taking a hefty toll on food production, supplementing water for production and the flow on regional community benefits this delivers, must be of the highest priority, the NFF said.

But the Shadow Minister for Agriculture, John Cobb, took a harder line saying the sale was proof "the government's war on regional Australia is intensifying".

"I am appalled that not only is my electorate being hit again by the attack on regional communities, but astonishingly there are no guarantees that any of the $303 million of taxpayers money Twynam’s has just pocketed will even stay in Australia.

"Here we have the government ripping 240 gigalitres of water out of regional communities, an amount which has the potential to create hundreds of jobs in regional Australia, grow thousands of tonnes of food and fibre to feed people and permanently stimulate the economy."

Mr Cobb says perhaps the most frightening aspect of this sale is that taxpayers have just paid an Argentinean company $303 million and that money could end up being spent off shore at a time resources and funds need to be invested in regional Australia.

But Agriculture Minister Tony Burke hit back accusing Mr Cobb of stepping over the line by arguing farmers have no right to choose how to manage their own properties.

"I haven’t met one farmer who thinks a politician would know how to manage a property better than the farmer does," Mr Burke said.

"The Rudd Government believes farmers are innovative and know their own land so they should decide how they run their businesses.

"Until now, I thought the National Party shared that view."

Mr Burke said the Federal Government was also investing in important irrigation infrastructure, with $300 million announced in the Budget for new on-farm irrigation efficiency grants.