Crop farmer “gutted” by Western Renewables Link equity loss, compensation negotiations underway

A Victorian farmer says he has lost at least $500,000 of equity on his property because of the Western Renewables Link. But project proponents say compensation is already being negotiated.

Negotiations are underway to compensate farmers for a loss of property values caused by the Western Renewables Link. Thomas Henderson-Drife said his equity recently dropped by at least $500,000. Photo: File

A farmer in central Victoria says his business could be “gutted” by the loss of equity caused by a large transmission line project cutting through his land, with negotiations for compensation reportedly already underway.

Thomas Henderson-Drife worked his way towards putting a deposit down on a property in Glendaruel by working as a joiner and a shearer for years.

He bought 290 acres in 2010 and now mainly grows wheat, canola, and barley.

But plans to put two transmission towers on the land as part of the Western Renewables Link has, Mr Henderson-Drife said, reduced equity in the property by at least $500,000, and he does not think any future compensation from project proponent AusNet will make up for the immediate loss.

About six months ago, Mr Henderson-Drife leveraged his land to buy a plot elsewhere and expand his farming operation.

But as settlement approached, his bank called to ask about the power lines and he confessed it “wasn’t looking good”.

“I said, ‘I’d be lying to you if I didn’t think we were going to have power lines, but it’s not locked in yet, so we’re hoping we may not,’” Mr Henderson-Drife said.

“They went on to say, ‘We’ve had to devalue your equity by over a million dollars.’

“I understand why they did it but was a little bit surprised and went on to talk with them about it.

“They just said, ‘The power lines come pretty close past your house and infrastructure. It’s definitely going to affect a sale of your farm if it comes to that.’”

The bank’s million-dollar figure was later revised and halved.

Although his purchase of the new land was successful, Mr Hendreson-Drife said it was close to “snowballing” into a big problem.

Landholders against the WRL hold a rally in March 2023. Picture: David Caird

Mr Henderson-Drife said he had just got through a wet season – “a real kick in the guts” – and saw even more climatic trouble was on the horizon.

“Myself and my wife have got this block through a lot of hard work and we’ve just had it ripped away from us,” he said.

“A lot of farming businesses are the same, we basically borrow millions to run our operation, and our equity is what allows us to borrow that money.

“We need our equity now, not in five years’ time.”

Should the WRL project go ahead as it currently stands, AusNet would negotiate agreements with landholders, compensating them based on land valuations for easement acquisitions.

Otherwise, the company can begin a statutory process to compulsorily acquire easements.

A spokesman for the Western Renewables Link said all affected landholders had been sent information about the Option for Easement process in February this year.

Option for Easement compensation would be mostly paid at the time the option were exercised, with about 20 per cent then paid once an easement was registered on the land title.

“The amount of compensation will vary for each landholder and is based on a valuation by an independent and accredited valuer,” the WRL spokesman said.

“The value of compensation will be based on the difference between the market value before and after the easement, known as the market value depreciation.

“In addition to the market value compensation assessment, landholders will also be compensated for disturbance to their property and operations, for example to sheds, fencing, crops, etc.”

“This compensation process is happening now to allow landholders sufficient time to consider the compensation offers and seek their own independent valuation and advice.”

He said landholders would be compensated for getting professional advice.

Initial estimates suggest the total compensation required for the WRL will be more than $50m.

The easement agreements would be in addition to an annual $8000 payment per kilometre for 25 years given by the state government to landholders hosting transmission infrastructure.