Magnus Nordaas pointed out that the ln(d) term blows down if d starts at 0. This version of the script works now.
mesh = UnitCubeMesh(3,3,3)
V = VectorFunctionSpace(mesh, "CG", 2)
Q = FunctionSpace(mesh, "CG", 1)
W = MixedFunctionSpace([V, Q, Q])
clampBC = DirichletBC(W.sub(0), (0,0,0), "near(x[0], 0)")
pushBC = DirichletBC(W.sub(0), (0, 0.1, 0), "near(x[0], 1.0)")
w = Function(W)
u,p,d = w.split()
fa = FunctionAssigner(W.sub(2), Q)
fa.assign(d, interpolate(Constant(1.0), Q))
u,p,d = split(w)
F = grad(u) + Identity(3)
J = det(F)
C = J**(-2.0/3.0)*F.T*F
C1 = Constant(2.5)
lmbda = Constant(30.0)
psi = C1*(tr(C) - 3) + p*(J - d) + lmbda*(ln(d)**2)
R = derivative(psi*dx, w, TestFunction(W))
J_form = derivative(R, w, TrialFunction(W))
solve(R == 0, w, [clampBC, pushBC], form_compiler_parameters = {"keep_diagonal": True})
plot(split(w)[0], interactive = True, mode = "displacement")