The West Coast's development fund is defending its decision to invest $5 million in a group of struggling dairy farms.
Federated Farmers has asked how Development West Coast chose Cranley Farms for investment, and questioned possible conflicts of interest among the fund's trustees.
The fund's chief executive, John Chang, says two trustees stood aside from all decisions about Cranley Farms because of their interests.
Dr Chang says the deal has considerable risk, but the fund was set up to take risks to benefit the community.
Development West Coast was set up as a charitable trust to manage and invest income from a $92 million fund given by the the Government in 2001 when logging was stopped in the West Coast's native forests.
