Small farms make a valuable contribution to rural communities and governments and rural policy makers will need to adjust their thinking and develop an understanding of the sector to address its future needs.

That’s the conclusion from a new report – “Small Farms:  Valued contributors to healthy rural communities” - commissioned by the Rural Industries Research and Development Corporation (RIRDC).

The study shows that while the migration of small or “lifestyle” farmers into traditional farming areas can result in conflict and loss of productive land, there are also many benefits which need to be further researched.

RIRDC Research Manager, Jane Fisher, said the report contained a message that was important for governments making policy for rural areas.

“Small farms are not easy to categorise but generally we are speaking of those properties where the bulk of income comes from off-farm sources and they are usually located in high-amenity locations, close to urban centres,” Ms Fisher said.

“These farms account for some 23 million hectares - or an area larger than that planted to wheat in Australia - however they produce less than two per cent of total agricultural output.”

The report shows that small farms can:

• Stimulate population and economic growth in rural areas
• Increase cultural, economic and environmental diversity
• Bring new ideas, skills and enterprises to rural areas
• Increase land values
• Breakdown the divide between city and country dwellers

“For each of these positives there can be negatives but they do show that the growth in small farms can be good for rural communities,” Ms Fisher said.

“Growth also brings challenges.  Rural Australia is moving to an era of greater population pressure, increased demand and competition for land and changing demographics with a subsequent impact on social structures and community values.

“Rural policy makers need to be aware of these challenges in the future.  This report shows that changes brought about by small farms are complex and require further research – a one-size-fits-all approach will not work,” Ms Fisher said.

Copies of the report can be obtained from RIRDC at www.rirdc.gov.au or by calling (02) 6271 4160.

Media enquiries:
Danny O’Brien – RIRDC Communications Manager – 02 6271 4175 or 0438 130 445