The first inquiry is looking at the consequences for food production from the surge in tax-driven schemes being established during the past, following the collapse of MIS giants Timbercorp and Great Southern.

That inquiry, chaired by Liberal Senator Bill Heffernan, took its first evidence in Perth last week. It included allegations of exorbitant fees, insider trading and the distortion of land, water and commodity values.

A joint parliamentary committee on corporations and financial services, chaired by Labor MP Bernie Ripoll, will begin hearings in Canberra next Wednesday, and has also been swamped with submissions outlining the perverse impact the schemes have had on rural communities and agricultural production.

George Ipsen, a large-scale avocado grower from the Manjimup-Pemberton area in the south west of Western Australia, told last week's hearing in Perth that he wrote to parliamentarians in 2005 warning them of the dangers of MIS, their impacts on food production and the viability of family farmers.

He said at the time he was "a lone voice" speaking out against the schemes which were supported at the time by the Western Australian Farmers' Federation and the WA Nationals, the latter of which he alleged was a beneficiary of massive donations from failed Great Southern.

In 2005, Mr Ipsen told politicians that MIS promoters were entering the avocado industry and enjoyed a large commercial advantage over family farming businesses.

He said he was at last week's hearing to say 'I told you so'.

Mr Ipsen questioned whether it was reasonable for the Australian taxpayer to fund tax minimisation schemes in agriculture for high-income earners "at the expense of rural communities".

He said if there was actually money in growing trees, more farmers would be doing it.

"The MIS promoters next door to me were charging investors $9000 a hectare to plant 1ha of blue gums," Mr Ipsen said.

"I have planted and grown commercial blue gums. It costs me $1000/ha.

"You can allow another $500 and say it was $1500 over that 10-year period.

"For that $1500, I get bugger-all taxation deduction. The guy who invests $9000, the promoter, gets 48 cents or 45c in the dollar tax deduction for that. It is just a totally inequitable situation. They were paid $9000.

"The dumb investors put in about $9000 and they will get $4500 back."

* Extract from a full report in Stock Journal, July 9 issue.