The 4400-hectare Madowla Park, near Echuca, is one of northern Victoria's biggest land holdings and fronts the Murray and Goulburn rivers near their junction.

The state and federal government-sponsored Water For Rivers company bought it a year ago for about $25 million and is now selling it for less than half that.

The farm has been converted from growing rice to less water-hungry winter crops such as barley and canola.

Madowla Park, established in the 1820s, was at the centre of Mr Elliott's failed rice-growing venture in partnership with the US Disney family. It went bust in 2002.

Water For Rivers' $425 million program, funded by Victoria, NSW and the federal governments, bought Madowla Park as the cornerstone of its strategy to buy back water entitlements and farms with large water holdings in a bid to reduce stress on the Murray-Darling Basin.

It is the biggest property bought in Victoria, providing a saving of 8000 megalitres of water.

Water For Rivers chief Neville Smith said Madowla Park now had a more sustainable future.

"I think most rice farmers are recognising that rice will be more of opportunistic crop from here on if they believe climate change or climate variation," he said.

Elders Real Estate is selling the property through tender, closing next month.

Agent Shane McIntyre said it would fetch more than $8 million with no water entitlements, or $10 million-plus with an optional 2000 megalitres of high-security water.

Victorian Farmers Federation water spokesman Richard Anderson said the VFF had been sceptical about the transformation and sale of the property, but it had been handled well.

"We don't like to see any water going out of irrigated agriculture, but the world's moved on," Mr Anderson said. "They haven't taken all the water out - it's still an irrigated viable property."

The federal member for Murray, Sharman Stone, said the sale would not benefit local rivers.

"Ultimately, where has the water gone? It has not gone into improving the flows of the Murray-Darling," Dr Stone said.

She warned Madowla Park could fall into disrepair and obscurity if sold to a private owner.