Farm Management Plan Report

Lot 1, TP512047, Bass Highway Inverloch, Agricultural Report Page 1

Farm Management Plan Report

Overview: Property owner: The Estate of the Late Ian Montgomery

Property Location: Bass Highway, Inverloch Vic 3996

Lot 1 on Title plan, 512047

Application number 190235, subdivision into two lots

The existing property is 61.976 hectares in size and the application is for the excision of the existing

dwelling on 1.226ha and the remaining 60.75ha being a separate title consisting of the farm land,

shedding, yards and farm water supply.

I visited the property on 23rd October, and inspected the farm in order to prepare the Farm

Management Plan.

Property Overview: The land is flat, rising to undulating on the western and northern sides of the farm. All the land area

could be regarded as suitable for agricultural and livestock grazing purposes.

Vegetation

There are minimal native remnant indigenous trees around the property. There are limited examples of

Eucalyptus ovate, E. obliqua, E. radiata and E. cypellocarpa. In addition there are several plantations

of common and variegated Cyprus (Cypress macrocarpa) trees on the property. There are no fenced

areas of native remnant vegetation to exclude livestock, other than the areas around the farm water

supplies. There are opportunities to create pockets of native vegetation plantations for shade, shelter,

biodiversity and wildlife corridors, should this be a requirement of the granting of a permit.

The roadside verges on the northern boundary (Bass Highway) and western boundary (Ruttle Lane)

contain native vegetation of environmental significance, as well as being of high value for shelter and

protection of livestock despite being outside the property boundary.


Soils and topography

The aspect is easterly and southerly. This increases the ability to grow pasture on a year round basis,

although growth will slow due to insufficient soil moisture in January-April in most years.

Soils are loosely known as grey soils, but correctly known Podosols and grey Kurosols. They are

inherently moderate in fertility but can be low in available phosphorus, potassium and sulphur and

low pH. The topsoils are dark-brownish–grey fine sandy clay loams with moderate to high levels of

organic matter. They merge to yellowish-brown light clays or silty clay loams at approximately 300

mm, with variable amounts of weathered sandstone and mudstone. The parent rock is approximately

900 mm below the surface but often closer on the slopes, affecting their permeability as well as drying

over the summer months. These soils are highly suited to perennial pasture production for grazing

animals.

There was no salinity evident on the property.

Acid-Sulphate soils are not evident.

Pasture base and weeds

Rainfall in the district is in the 800 mm range (with the long-term average being 937mm for

Wonthaggi), making it a strong pasture growing district. Effective rainfall and pasture growing

months are April-January.

Pasture species noted were perennial Ryegrass and White Clover, both productive pasture species and

make up an estimated 50% of the pasture base. There is a significant content of Sweet Vernal grass,

trefoil (native clover), plantain as well as small amounts of Poa annua (winter grass). Pasture weeds

are limited, and include capeweed, mallow, with some Dock and Sorrell (Rumex spp) and flatweed

and all make up less than 5% of the pasture base on the property. There were little to no noxious

weeds present, typically Blackberry (Rubus spp) and Thistles (Cirsium vulgare and Carduus spp).


There was no evidence of any significant infestation with vermin, such as rabbits and foxes.

I estimate the current level of pasture growth and consumption on an annual basis as 5tDM/ha and in

my opinion, with grazing management, fertiliser applications as outlined in this report and additional

paddock subdivision, this is capable of increasing to 7tDM/ha, a 40% increase.


Infrastructure

Boundary fencing is permanent and in very good to excellent condition in most areas. There are

internal fences with five and six wires and electric stand-off, all in very good to excellent condition,

with the property subdivided into seven paddocks of approximately 8.5ha each. In order to enhance

pasture production via rotational grazing and for efficient and effective stock management, more

internal fences and smaller paddocks could be constructed. This would increase the pasture

production and therefore the carrying capacity of the property. It is recommended that each paddock

is divided into two, with water supplied via the existing water supply, therefore having 14 paddocks

of approximately 4ha, and stock rotated every 2-3 days, thereby having a 30-day rotation around the

farm for much of the year.

There are yards for stock handling, a crush and a ramp and race for the loading and unloading of cattle

via the internal all-weather track. The stock yards are located approximately 200m inside the

boundary, alleviating any issues with traffic flow and safety from the Bass Highway, and are located

well away from the exiting dwelling, therefore minimising noise and odour.

Water supply is from four dams (two large and two small) with three that are fenced to exclude

livestock access. There are several troughs located in the paddocks and these have water reticulated

from the dams to supply them. Water supply is adequate and secure, alleviating the need to draw on

town water supply now or in the future.


Water supply is deemed to be adequate for the grazing of beef or dairy stock and no further

investment in surface water catchment is required by the owners.

There is shedding on the property with one utility shed located close to the entrance to the farm and a

hay shed of moderate size located alongside.

Cattle grazing enterprises:

The owners currently graze steers and bullocks of approximately 400-600kg liveweight on the property.

Other opportunities exist to increase the income generated from grazing enterprises, and include

cow/calf grazing and agistment of dairy or beef heifers.

I have provided a summary of these enterprises below. Any of these enterprises are inter-changeable,

as they require similar infrastructure and no additional capital investment. None of these enterprises

have a detrimental impact on the neighbours, urban interface, aesthetics or environment.

Agricultural significance of these enterprises:

The feed requirements of a traditional cow and calf raising enterprise are 4.5tDM/unit/year. This would

see the property in its current state running an estimated 64 cows with calves on an annual basis, and

provide its own fodder requirements for periods of low pasture growth. With an increased level of

pasture production, this would increase to 90 cow/calf units.

Agistment dairy heifers would be 12months old through to point of calving, and so 120 would be on

the property for an estimated 44 weeks.


Beef fattening or backgrounding sees steers purchased at varying weights, but typically 250kg weaners

and grown through to 500kg liveweight over 300-330 days, at an average growth rate of 0.7-0.8kg

liveweight/head/day. There would be 120 head raised on an annual basis.

Assumptions:

Farm area 60ha.

Less area ungrazeable (dams, yards, treed areas) 2ha

Total effective area= 58ha

Estimated current pasture growth 5t DM/ha. Potential 7tDM/ha.

Income Cow/calf self-

replacing

enterprise*

Beef

fattening#

Agistment

dairy heifers

(120 head

over 44

weeks)

Sale of vealers $57,000

Sale of cull cows $9,000

Sale of cull bulls (1 bull

per 5 years)

$400

Sale of steers/heifers $132,000

Agistment income $37,800

Total income $66,400 $132,000 $42,240

Expenditure

Vet/drenching/vaccines $2,700 $1,800 NIL

Fertiliser $10,670 $9,050 $10,670

Commission/freight $6,640 $13,200 -

Stock purchases $1000 $72,000 -

Fuel $500 $500 -

Fodder-making $5,000 -

Total expenditure $26,510 $96,550 $10,670

Gross Margin total $39,890 $35,450 $31,570

Gross Margin per ha $664.83 $590.83 $526.17 *Assumes 10% replacement rate and 5% empty rate, resulting in annual sales of 76 animals per year. #Assumes steers purchased for $600/head and sold for $1100/head 10-11 months later

This analysis shows that the available enterprises for the property return a gross margin close to a

rental figure of 4% of asset value ($42,000), assuming the asset is valued at $1,050,000 as an

agricultural property, or $7,000/acre (agricultural value only). Fixed costs, overheads and finance

costs need to be deducted from the gross margins above.

Proposal: I believe that this property is ideally suited to beef cattle breeding/backgrounding/fattening/finishing,

or the grazing of agistment dairy heifers or some combination of some or all.

There will be minimal to no impact on the neighbouring properties as the enterprise is neither intensive

nor noisy. There is minimal environmental impact, soil disturbance, impact on the urban interface nor

would it create any significant odour or noise. Yards are located away from the highway and urban

interface, and so impact and safety concerns are minimal.

The proposal to excise the existing dwelling, leaving a title of 60.75ha with the agricultural

infrastructure required for the suitable enterprises is not detrimental to the property in its agricultural

significance or ability to generate a reasonable rate of return from the investment.


The proposal keeps the land in agricultural production rather than “lifestyle value”, meeting the aims

of the Shire to maintain farm land in agricultural production.

The animal production industries are the mainstay of agricultural production in the Bass Coast Shire

and all of South and West Gippsland. Our land and natural resources are suited to animal production.

The climate, pasture growth cycle and environmental conditions are all favourable to the growth and

production of livestock. It is our comparative natural advantage. However, social changes and pressures

see a constantly changing landscape for the commercial production of animals and animal products.

The proximity of this land to the township of Inverloch and the major thoroughfare of the Bass Highway

means that pressures will only increase on a farmer’s ability to effectively manage any animal

production enterprise. There will be more scrutiny of production methods, animal husbandry,

management practices and animal welfare going forward. Ensuring the safety, security, welfare and

adequate management of livestock will be paramount to the future operation of animal production

businesses. Ensuring Gippsland retains its image and standing as a clean, efficient and largely animal-

based agricultural production location will be crucial for the future of agriculture in the Shire and those

adjoining Shires in South and West Gippsland.

The construction of a dwelling on the 60.75ha title should not be prevented in the future as continuation

of suitable agricultural enterprises into the future may rely on a dwelling being present for safety,

welfare and appropriate management of animals.

The aim of the proposal is to keep the land in efficient, productive agriculture and for farm land to be

utilised to the best of its ability in the best land-use for the location. A future dwelling may be required

for this purpose.

Meeting the Bass Coast Shire Rural Land Use Strategy

The position of the Shire is such that rural land use and development is managed to promote agriculture,

and that the landscape, coastal and environmental values of Bass Coast are recognised and protected.

This proposal is not contrary to these outcomes.

The vision of Bass Coast Shire for rural areas is set out in the Rural Land Use strategy, and this vision

is to:

• Protect the opportunity for agriculture;

• Protect rural landscape and maintain green breaks between towns;

• Provide for rural based tourism;

• Ensure that environmental values are protected and enhanced;

• Protect the liveability of Bass Coast’s rural areas.

This proposal meets all the relevant visions above.

Environmental planting, biodiversity and enhancement: This district is prone to cold, wet and windy conditions. Daytime winter temperatures are often below

10ºC in winter. Wind-chill can be significant where access to shelter is limited.

There is currently native vegetation on the fringes (northern and western boundaries both being road

verges) and Southern extremity of the property, with some isolated vegetation internally, mainly

around dams.

There are several aged cypress tree breaks that contain some dead trees and others in poor condition.

These may be replaced with indigenous tree breaks 10m wide, with suggested species provided in the

species list in this report.


There will be planting and establishment of native vegetation wind breaks and shelter belts on the

property to enable the stock to receive shade and shelter. This will enhance the growth and health of

the animals, improve the success of any cow/calf enterprise and improve the environmental

significance of the property. The result will be a prevention or minimisation of soil erosion and

improved water quality from any nutrient or soil run-off, ultimately ending up in Wreck Creek and the

Inverloch marine environment. A species list and plant density guide is within this report.

These plantings will enhance biodiversity in the area and create important wildlife corridors between

the roadside natural vegetation along Bass Highway, the extensive vegetation to the south west area

around Albert Ruttle Drive, and the open agricultural areas on the property.

Weed and Pest Control and Management:

The property currently has a very low level of noxious weeds, and minimal numbers were obvious on

the property inspection. The main species to this area are blackberry and thistles, with Scotch and

Shore thistles. These can be easily spot-sprayed in spring and early summer, with mechanical means

or via woody weed sprays available.

Any infestation of pest animal species (rabbits and foxes) will be dealt with through destruction of

warrens and poisoning.

Works Program:

Priority Activity Time-frame

medium plantations Installation of indigenous plantations for shade and shelter

and eventual replacement of cypress plantations. Fencing of

suitable areas with 10m width and varying lengths to provide

adequate areas for shade and shelter as well as wildlife

corridors. Planting can commence in the autumn following

construction of fences.

medium Paddock re-alignment Fencing works proposed can commence at any time. This

allows for the subdivision of the existing 8ha paddocks into

two paddocks of approximately 4ha each according to the

topography

moderate Waterway protection Fencing of large dam on southern boundary to minimise

stock access and limit access to one area only. This will

minimise soil erosion and maintain optimum water quality

for stock.

On-going Weed control April-June annually: broadleaf spray with low-volatility

chemical to kill flatweed, capeweed, thistles, docks via a

contractor or own equipment. Follow up spot spray with

Grazon, Brushoff or similar woody weed spray in Oct-Jan

each year to control blackberry and thistles.

On-going Pest control On-going monitoring of pests and vermin and control via

mechanical destruction of warrens and dens and selective

poisoning.

On-going Pasture renovation March-May on-going program of pasture renovation

including any resowing works. Autumn fertilisation with

150kg/ha “2 in 1” or equivalent and a further 150kg/ha

application in spring. This minimises the risk of nutrient run-

off and leaching and allows maximum plant uptake.

Application of 2.5t/ha lime with any pasture renovation

works.


Suggested species list for lowland/ coastal scrub:

Eucalyptus ovata -Swamp Gum (Medium tree to 30 m)

Eucalyptus obliqua -Messmate (Large tree to 60 metres)

Eucalyptus radiata -Peppermint (Medium tree to 30 m)

Eucalyptus consideniana -Yertchuk (Medium tree to 15 m)

All the above in varying amounts totalling approximately 100/ha

Acacia melanoxylon -Blackwood (Variable tree to 30 m)

Acacia mucronata -Narrow-leaf Wattle or Sallow Wattle (Shrub 2 - 6 metres)

Acacia verniciflua Varnish Wattle Variable (shrub to 4 m)

Acacia verticillata Prickly Moses (Shrub to 5 metres)

Acacia stricta Hop Wattle (Erect shrub to 3 metres)

Ozothamnus ferrugineus Tree Everlasting (Shrub to 3 metres)

Goodenia ovata Hop Goodenia (Shrub 1 -2.5 metres)

Leptospermum continentale Prickly Tea-tree (Variable shrub to 2 m )

Coprosma quadrifida Prickly Currant Bush (Medium to large shrub )

Olearia lirata Snowy Daisy Bush (Large shrub )


Lomandra longifolia Spiny Mat-rush (Dense clump to 1 metre )

Pultenaea gunnii Golden Bush-pea (Small shrub to 1.5 m )

Pultenea daphnoides Large leaf Bush Pea (Erect shrub 1 - 3 m )

Davesia latifolia Hop Bitter Pea (Shrub 1 - 3 metres* )

Cassinia aculeata Dog Wood (Medium shrub )

Cassinia longifolia Shiny Cassinia (Shrub 1 - 2.5 metres )

Cassinia aculeata Common Cassinia (Erect shrub to 4 metres )

Goodia lotifolia Golden Tip (Shrub to 4 metres )

Bauera rubioides Wiry Bauera (Shrub 1 - 1.5 metres )

Kunzea ericoides Burgan

(Large shrub to 6 metres )

Dillwynia cinerascens Grey Parrot Pea (Small shrub to 1.5 m )

Dianella tasmanica Tasman Flax Lily (Herb to 80cm * )

Clematis aristata Mountain Clematis (climber to 15 m)


Weed control program- spray program for the weeds in the area

Weed Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Thistles √ √ √ √ √ √

Blackberry √ √ √

Ragwort

(none likely)

√ √ √ √ √

Broadleaf

pasture

weeds

incorporating

capeweed,

flatweed,

dock etc

√ √ √ √ √


Summary: This property currently supports the grazing of beef and dairy steers, and bullocks.

The traditional agricultural enterprises for this property include a continuation of the current enterprise,

the grazing of breeding cows and calves or agistment of dairy heifers.

The proposed excision of the current dwelling sees the creation of a title of 60.75ha suitable for an

agricultural enterprise consistent with the Farming Zone and desired outcomes and vision of the Bass

Coast Shire. That title would contain all the agricultural infrastructure needed for the suitable enterprise

options and would have no negative environmental impact or impact on the urban interface.

The construction of a dwelling on the 60.75ha title should not be prevented in the future as continuation

of suitable agricultural enterprises into the future may rely on a dwelling being present for safety,

welfare and appropriate management of animals and this may depend on changing and evolving social

and community expectations.

There will be environmental enhancement of the property with indigenous vegetation planting,

particularly for shade and shelter planting for the protection of the animals as well as for environmental

protection, biodiversity, wild-life corridors, reduced soil erosion and subsequent downstream and

marine impact.

There will be no negative impact on neighbouring properties.

There will be additional weed control through the autumn control of broadleaf and noxious weeds.

Yours sincerely,

Matt Harms B Ag. Sc. (Honours)

Principal and Senior Consultant

ONFARM Consulting

Documents

Farm Management Plan Report