Removal of right to build spells hardship for fringe farmers

Give Victorian farmers a break on their loss of the right to build a home on 40ha-plus. The move will result in a massive drop in values, writes Randall Gerkens.

Value threat: Farmers’ land rights are being erased. Picture: Jake Nowakowski

TO ALL the risk of farming you can now add the Victorian Government’s proposal to remove existing rights to build a dwelling on 40ha or more on farm-zoned land within 100km of Melbourne.

The intention is to protect “strategic agricultural land”. But removing farmers’ existing rights (which underpin farm values) is not the way to do it.

The Department of Environment, Land, Water and Planning says you can still apply for a planning permit. But, even if you can afford that, a permit can be refused if the area available for agriculture reduces, which obviously it will.

As a real estate lawyer and farmer, I understand the practical impact on values — which will be halved at least.

My family has been in Macedon Ranges for four years and apart from building a new family home, we won’t be building more. We’ve invested our savings to become beef producers. We bought for market value which reflects the right to build on 40ha. DELWP now wants to change the rules halfway through the game and destroy our investment.

The impact when we go to the bank will be devastating. When the banks say no to farm borrowing because land values have fallen, will DELWP provide the funding or compensation? DELWP say they haven’t considered this and it’s unlikely they will.

Most farmers spend lifetimes improving their land to produce our food. Their land is often their only asset, their livelihood and security. It’s blatantly unfair and frankly un-Australian to treat a minority this way.

Consultation has been advertising notices and social media posts about “consulting” with DELWP. Most farmers won’t have noticed the process. All should have been given personal written notice.

However well-intentioned DELWP may be, it’s incumbent on them to understand the effect on values and not fob off objections by saying they’re not valuers and can’t assess the economic impact of “just a proposal”.

The proposal will be a policy fail in protecting our food bowl and will undermine the security and livelihoods of struggling farmers already confronting the challenges of living on the land.

The policy failure will be the brake put on farm improvements when capital-constrained farmers can’t invest in fencing, weed control and environmental improvements to operate productive and environmentally sustainable farms.

Why not instead support farmers with incentives to maintain their farmland and businesses? Facilitating finance for farmers and much needed rate relief would also help.

The Government has a stated commitment to the agricultural sector. This is an opportunity for DELWP and the minister to show they listened, understood the impact on farmers and withdrew the proposal.

That would show true policy leadership and build confidence in the Government’s commitment to farmers. Minister Wynne, it’s over to you, please don’t let us down. We are depending on your good sense.

*The views expressed are my own and not my firm’s.

● Randall Gerkens is a real estate lawyer and farmer at Monegeetta

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