Minimum lot size is a topic guaranteed to inflame the passions of many farmers. The needs of farming families butt up against the requirements of the wider society in a battle bound to cause pain.
As suburban sprawl creeps its ever-expanding tentacles across swathes of productive rural land, as a society we need to produce more and more food from less and less land. Planners worry that at some stage we will not have enough land left to produce the volume and quality of food we require. Hence the desire to protect viable areas for farming.
Viability of farming enterprises is important. It is a matter of simple economics that larger farms tend to be more efficient, as they can spread their fixed costs over a greater acreage, giving a lower cost of production per acre.
For example, most sheep farms have a quad bike, which costs roughly the same whether you are farming 200 acres or 2000. You may be able to make do without a quad bike on, say, 20 acres, but everything will take longer. You would probably incur extra expenses elsewhere, perhaps in medical expenses when you hurt yourself carrying things which would be better transported on a quad bike!
Farmers tend to spend their working lives with a pencil behind their ear, scribbling figures on the back of an envelope, working out how they can acquire more land. Then they hit the problem of how to pass the farm onto the kids.
The tradition in Jane Austen’s England was for the eldest son to get the farm, the second son was bought a commission in the army or navy, the third son became a clergyman and the daughters married their money. While there were many faults with this system, one thing it did do was keep the estates as viable enterprises.
In other places, the land was divided up between the sons (again, the daughters had to marry their money). It doesn’t take many generations for a large but finite area of land to be divided and divided until the people are peasants eking out a meagre existence on tiny blocks of land, with the bright lights of the city beckoning.
In Australia today, we can use sophisticated ideas to circumvent some of the above problems (eg we can form companies who employ one son to manage the farm for sibling shareholders who have jobs in town.) But the heartbreak succession often causes and the vast number of ‘succession refugees’ – often working as managers for other people, as stock and station agents, in rural merchandising, driving stock transports – shows that how you treat rural land is one of the key issues for agriculture in Australia today.
Farmers want the right to pass their land to their children in the best way for their individual family. Succession is hard enough for a family without worrying about the implications for the wider society.
Farmers also want the right to sell their back paddock if they get into financial difficulty. They may have to take a job in town to keep food on the table, but splitting the farm may allow them to stay in their home, on the land they love, in the communities where they feel they belong.
If they sell to a neighbour, the sale may increase the viability of the neighbour’s farm. If they sell to a hobby farmer, the chances are the land will become less productive. But a farmer can get much more per acre if he splits the farm into small blocks. Plus small lot subdivisions are expensive to service.
And there’s the rub.