Rural Strategy - Surf Coast Shire

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Surf Coast Shire Rural Strategy Review Final Report Table 4-2 Surf Coast Shire agricultural industry structure analysis 2001 by Estimated Value of Agricultural Operations (Source ABS Census 2001) 2001 Industry Part Time Properties ($1million) Total Properties Poultry 3 4 2 9 Dairy 14 7 13 3 37 Beef 84 3 1 88 Plant nurseries 4 4 Flowers 3 2 5 Crop and Plant Nec* 9 1 1 1 12 Grain 11 1 1 1 14 Sheep 56 7 1 64 Sheep-beef 36 9 20 Other 32 11 13 1 2 Total 249 43 34 5 4 335 % of Total 75 13 10 1 1 100 *Crop and Plant Nec – properties engaged in growing plants not elsewhere classified e.g. bamboo, pasture seed, mushrooms Farm Affordability in the Surf Coast Shire The value of rural land across the Shire is influenced by a number of factors including: The scenic rural ‘feel’ of the Shire continuing to attract new small farm development; Prohibitive coastal land prices forcing those seeking a lifestyle change to investigate inland opportunities; and Farm businesses requiring access to more land to grow over time. With the increasing demand for rural lifestyle properties, an emerging factor for the future of agriculture within the Shire is availability of affordable land. Sales activity relating to an increase in small farm number will tend to increase land prices. Table 4-3 compares the median sales prices in 2004 of rural land in the Surf Coast and Colac Otway Shire. Of note is the significantly higher prices paid for land used for beef and dairy production, farm land without a dwelling and vacant hobby farmland. This suggests that demand for lifestyle properties has already had a significant impact on land values and is supported by anecdotal information collected through the community consultation. RMCG Consultants for Business, Communities & Environment Page 22
Surf Coast Shire Rural Strategy Review Final Report Land prices higher than the productive value may have a number of implications for farm business investment decisions and the way farms are operated in the Shire. Some businesses will overcome high land prices by intensifying farm operations and hence the emergence of poultry and pig production in the northern end of the Shire. Some businesses will sell and reap the benefits of the high land prices and seek cheaper land outside the Shire. This is consistent with the reduction in farm businesses and the reduction in the total area farmed in Surf Coast. Some will seek off farm income or value adding opportunities such as farm stays. Council is limited in its capacity to influence farm affordability through the planning scheme and local policy. Table 4-3 Median sales price in 2004 of rural land in the Surf Coast and Colac Otway Shires. Land Use Surf Coast Median Sales Price ($/ha) Colac Otway Median Sales Price ($/ha) Beef $11,275 $1,730 Cereal $5,784 $7,653 Dairy $13,609 $5,523 Farmland (without buildings) $16,027 $5,339 Hobby farm (with dwelling) $62,439 $54,863 Hobby farmland (vacant) $46,594 $14,520 4.4 Intensive Animal Industries In 2002, the Geelong – Barwon Region Intensive Animal Industries Study, (November 2002), was jointly commissioned by the Greater Geelong, Colac-Otway, Golden Plains and Surf Coast Councils to address concerns that significant opportunities for intensive animal industries were being lost because of difficulties associated with site selection. It provides an overview of the key intensive animal industries together with the factors that influence the development of these industries, including environmental, economic, social and management priorities. SWOT analyses and an assessment of competitive advantages and other factors led to the identification of potential locations by industry and municipality. In relation to Surf Coast, the study mapped preferred areas for intensive animal husbandry that extends from the Cape Otway Road in the south, to the municipal boundary in the north. Having reviewed the findings of the 2002 report and having undertaken an assessment of the precinct (refer Precinct 1 Assessment, Section 9.5) the project team endorses this area’s suitability for intensive animal industries. RMCG Consultants for Business, Communities & Environment Page 23
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Rural Strategy - Surf Coast Shire

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