Rural home building and planning have come to a standstill in two Victorian municipalities where the state government has intervened to protect farmland.
The Australian Financial Review reports that in May, Planning Minister Justin Madden amended farming zone restrictions in the Mildura Rural City and South Gippsland Shire councils to block homes being built on properties of less than 40 hectares.
South Gippsland Mayor James Fawcett said the scheme had divided locals, although it was important to protect the $600 million dairy industry.
"If we continually allow more people to live in the rural areas, eventually, by democratic process they will restrict farming, you'll get to a Mornington Peninsula [scenario] because on that road, where there was five farmers there are 30 homes who don't want a tractor starting at 5.30 in the morning," he said.
The view is not shared by Sue Svenson, a local beef farmer and member of the Rural Property Owners Group, who said many local first-home buyers, retirees and lifestyle purchasers from Melbourne had bought rural blocks of less than 40 hectares with the intention of building a home, but had been left out of pocket as the market for sub-40ha properties evaporated after building was barred.