Kate Valley landfill owner Transwaste has quit farming.
It has sold 1350ha west of the landfill to Organic Farm Holdings, which will also lease 950ha.
Transwaste bought the 2757ha Tiromoana Station from Southern Capital in July 2000 as it sought to build a regional landfill.
In October 2003 it bought the adjoining 570ha Mount Cass Station, which it incorporated into its farming operation.
The general manager of Canterbury Waste Services, the landfill operator, Gareth James, said the bulk of the coastal area would be kept by Transwaste.