The Federal Government has abandoned plans to compulsorily acquire farmland in Queensland which was to be used for joint training exercises with Singapore's military.

Key points: ADF wants to expand by hundreds of thousands of hectares

ADF wants to expand by hundreds of thousands of hectares 60 landholders and graziers had been told there may be forced acquisitions

60 landholders and graziers had been told there may be forced acquisitions Defence Minister says expansion to still occur despite today ruling out forced sale

The Australian Defence Force (ADF) put about 60 graziers at Shoalwater Bay on notice that they might be forced to sell their land, spanning hundreds of thousands of hectares, north of Rockhampton and west of Townsville.

The ADF wants to expand the Shoalwater Bay and Townsville training areas to cater for larger war games and an increased number of Singaporean troops training in the region.

Property owners who still wish to sell their land will be able to do so, but there will no longer be any forced sales.

Deputy Prime Minister Barnaby Joyce intervened last week, promising to fight to protect affected grazier's properties.

The proposed land acquisitions are the result of a $2.25 billion Defence deal signed with Singapore last year to increase its forces' military training in Queensland.

A map of the proposed Defence expansion area at Shoalwater Bay. ( Department of Defence )

Neither Defence Minister Marise Payne nor Prime Minister Malcolm Turnbull made any mention of land acquisitions, either compulsory or voluntary, when the deal was announced in May, two months before the federal election.

"I've listened to the concerns of local land owners … and have ruled out forced sales," Ms Payne told the Queensland Country Hour.

"The case has been made and it's a very strong case."

Expansion to still occur

Ms Payne said she was working closely with Singapore to ensure the deal continued, adding a master plan would be finalised in a fortnight.

"The land that forms the final training areas, at both Shoalwater Bay and Townsville, will come together as part of this master planning process," she said.

Hundreds attended a community meeting in Marlborough in January. ( ABC News: Isabella Higgins )

"And as willing vendors work with Defence in regard to their properties, that is part of the planning process.

"I'm comfortable that we will continue to do that until we get the right outcome."

Ms Payne said alternative sites were raised during the consultation phase, "we indicated that we would consider those and that's underway".

She said, however, the infrastructure and development is already at Shoalwater Bay and Townsville.

Landholders 'over the moon' at Defence backdown

Sharon Howard from peak farm lobby group AgForce was "over the moon", adding many have called her crying with relief.

She said the policy was flawed and should never have been allowed off the drawing board.

"The sheer scale [of the proposal] was terrifying," she said.

Glen and Robyn Spurdle live at Marlow Station, which was in the expansion zone. ( ABC News: Robert Baird )

For Glen and Robyn Spurdle, who own three properties within the resumption zone west of Townsville, it was pure relief.

"I'd say there'll be one big party," Glen laughs.

"It's been a long struggle, a lot of worry, a lot of sleepless nights… thank goodness the Government did listen to us."

Minister defends Defence handling of land acquisition proposal

Communities meeting were held across central Queensland in the lead up to today's announcement, where locals voiced frustration that they felt bullied.

Ms Payne defended sending out bulk letters to those who may be affected.

Mr Joyce and Ms Payne made the announcement on the Country Hour on Tuesday. ( ABC News: Anna Vidot )

"We were upfront," she said.

"To not have engaged in a consultation process with was open and transparent would have been counter productive.

Queensland Agriculture Minister Bill Byrne said the scrapping of the plans is a "humiliating climb-down".

"It is outrageous that the Federal Government had to be dragged kicking and screaming to the right conclusion," he said.

Opposition leader Bill Shorten also welcomed the backdown, but called on the Prime Minister should apologise to locals for what Mr Shorten called the government's "arrogant, indifferent and incompetent" handling of the issue.