New VFF board faces uphill battle: current assets sold off

The value of the Victorian Farmers Federation’s current assets has fallen from $11 million in 2021 to just $1.92m today.

The former VFF board used the Grains Group’s $9.32m deed poll to pay off borrowings that had grown from $5.9m in 2020 to $8.1m by September 2022.

The value of the Victorian Farmers Federation’s assets, excluding Farrer House, have fallen from $11m in 2021 to just $1.92m by September 30, 2024.

Most of the asset decline can be attributed to the previous board using the VFF Grains Group’s $9.32m deed poll to pay off borrowings, which had grown from $5.9m in 2020 to $8.1m by September 2022.

The surge in borrowings came despite the VFF gaining $350,525 from the sale of its shares in NFF House in 2021, plus another $849,532 in Covid-stimulus funding from the state and federal governments over two years.

Cashing out the deed poll has left the board without $270,000 in dividends.

The audited accounts also show membership fell from 4846 in 2021 to 3261 by September 30, 2024, leading to an $800,000 loss of income.

The era of the VFF relying on the property market to boost the value of its Farrer House headquarters and prop up its finances has also come to an end.

Farrer House was valued at $30.6m in 2021, and then revalued at $41.2m in 2022, despite a Covid-driven exodus of workers from the CBD that led to a slump in rentals and the property market.

However, the VFF’s latest annual report shows it has been forced to revise the value of its Collins Street home down to $37.5m, as rental income fell from $1.74m in 2023 to $1.68m in 2024.

Incoming VFF president Brett Hosking said the federation’s income was now concentrated on two sources – the building and membership income.

Mr Hosking said there was an opportunity to revive levies and build up tenancy, which sits at 70 per cent.

“(But) we do know there will be a time lag,” he said.

VFF president Brett Hosking faces an uphill battle reviving the federation’s finances.

Mr Hosking was elected president on December 20, along with Peter Star as vice-president.

Since their election United Dairyfarmers of Victoria president Bernie Free, who had been banned from entering Farrer House, has joined the board along with Livestock Group president Scott Young.

Mr Hosking said there were “no plans at all” to sell Farrer House, despite the previous board entering an off-market process that led to a number of offers being lodged.

When asked about the offers, former president Emma Germano said the former “VFF board explored a sale option for Farrer House in 2024 in line with the finance and asset management strategy, and has received an offer worth due consideration”.