Issue 3: Barriers to entry / expansion In conjunction with the typically lower average and less secure income prospects in agriculture, there are a number of barriers 39 that are limiting various industries and opportunities on the rural lands of the Clarence Valley. These are apparent in two main ways: 1. a lack of new entrants which places increased pressure on existing and older producers to continue working 2. an inability to expand farming operations to keep pace with ever increasing productivity needs to maintain viability
3.1
Land prices and affordability
Rural land in the Clarence Valley varies considerably in price due to proximity to towns, coastal landscapes, geographical features and terrain. While the Clarence Valley enjoys lower median house and rental market prices than some surrounding council areas, house prices have still increased significantly in recent years, from a median house price of less than $320,000 in 2014 to around $485,000 at the current time, including 17.7% growth over the last two years 40.
While the ability of rural land holders to commence or expand
Notably, growth in surrounding local government areas has typically
agricultural activities is interconnected with issues beyond the scope of
been much higher, with the Richmond Valley LGA increasing by 19.1%,
Council’s immediate control, the following key and inter-related
Coffs Harbour by 23%, Ballina by 32.8% and Byron Shire 60% over the
aspects of this issue were raised through consultation and research:
same period. The growth in surrounding localities suggests that there
o
Land price increases and subsequent affordability
o
Intergeneration progression and succession planning
o
Subdivision of land whilst retaining productive capacity
Monitoring and where possible the removal of barriers to entry and expansion can assist in maintaining viable and productive uses of rural lands to the benefit of the wider Clarence Valley community.
may continue to be increasing price pressures on land in the area into the foreseeable future. This increase in land value also extends to rural lands. A combination of increasing land value for agricultural pursuits is being exacerbated by the growing popularity of lifestyle farms and appetite for sea / treechange opportunities. This has been highlighted in the annual Rural Bank – Australian Farmland Values 2021 report41, and as shown in the historical graph below for NSW42.
39
40
See for example https://www2.deloitte.com/au/en/pages/consumer-business/articles/farmingverge-workforce-crisis.html - accessed 19 November 2021
41
From ruralbank.com.au – accessed 11 November 21
42
Rural Bank – Australian Farmland Values (2021)
See https://www.realestateinvestar.com.au/Property/nsw/clarence+valley – accessed 11 November 21
Clarence Valley Council Rural Lands Strategy – Background Paper
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