Jacinda Ardern is rejecting suggestions that too much farmland is being converted into foreign-owned forests.

The four largest private landowners are now all foreign-owned forestry companies.

The Prime Minister says more land could end up in foreign hands, as the Government promotes the conversion of farmland into forestry.

Jacinda Ardern told Mike Hosking forestry is just reclaiming a small amount of productive land it lost in the past.

"We lost forestry to conversion into agriculture land, and it wasn't always land which was appropriate. What we are seeing now is a transition back."

The PM says they are not against quality, foreign direct investment in New Zealand.

"What we are opposed to is the investment going into our housing market, which really doesn’t benefit anyone."

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