Summary of Background Review & Rural Issues Paper to support the Draft PolicyDirections Paper

Dungog Rural Lands Strategy

Policy Directions Paper

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This paper provides a summary of the key information from the Background Review and the Rural Issues Paper to provide context for the Draft Policy Directions Paper. The full versions of the Background Review and the Rural Issues paper are available online at Councils website under the tab rural lands strategy.

Part A – Background Review

- Planning policy and legislation review

- Demographic review

- Agriculture & rural lands

- Economy and tourism

- Environmental analysis

- Transport and infrastructure

- Rural residential development

Part B – Rural Issues

- The rural economy

- The rural environment

- Rural communities

- Regulation and governance

The Background Review collates statistics and research to provide context as too the current situation within the Shire.

The Rural Issues Paper, builds on the research of the Background Review and the community and stakeholder engagement to identify the key issues and provide analysis.

Both the Background Review and the Rural Issues Paper can be accessed, in full on Council’s website from Monday 20 July 2020.

Purpose

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Agriculture in the Hunter Region

Table 1.1 Hunter LGA’s median age, income and key sector employment (Page 3 Background Review)

Comparison of employment sectors, agriculture and mining in across the LGA’s in the Hunter Region.

Commercial farming in the Hunter Region

The total value of agricultural production in the Hunter Valley region was $310 million.

The estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of their business size.

‐ 864 farms with an EVAO over $40,000 or more.‐ 44% of farms had an EVAO between $50,000 and $150,000 accounting for 10% of

total value of ag operations‐ 9% of farms had an EVAO >$1 million and accounted for 49% of the total value of

operations

Distribution of farms by estimated value of agricultural operations, Hunter Valley Region (Page 65 Background Review)

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As seen in the graph below, beef cattle farming is the most common farm business accounting for 

483 farms and 56% of all farm business across the region. 

Number and type of farms – Hunter Valley Region (Page 66 Background Review)

Hunter Meat Chickens top 4 LGAs

Dungog Mid‐Coast

Port Stephens Maitland

Hunter hen egg production top 4 LGAs

Mid‐Coast Lake Macquarie

Cessnock Maitland

Hunter Beef cattle (numbers) 

Mid - Coast SingeltonMuswellbrook DungogPort Stephens

Hunter dairy cows (numbers)

Mid- Coast SingletonMuswellbrook DungogUpper Hunter

The above graphs indicate the top five local government areas in the Hunter Region in both beef cattle and dairy cow numbers. Dungog is a prominent provider overall in the cattle sector.

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As seen above, Dungog is prominent in the production of meat chickens but is not in the top four in the Hunter for egg production and is not a prominent contributor.

Agriculture and Rural Lands in Dungog

Employment: 421 (19.12%) Output: $146.23 millionValue Add: $69.01 millionExport: $120.56 millionImport: $37.34 million

Agriculture and rural lands are predominant in the Dungog LGA both economically, socially and environmentally. Economically agriculture I the shire is the most significant contributor across all sectors . A summary of agriculture in the LGA is provided below.

Land and soil capability

Land capability for agricultural production combines conditions such as geomorphology, topography, vegetation and soils to determine the capability of the land for certain agricultural land uses. Land in NSW is commonly classified under an 8-class classification which is shown below.

The main agricultural land classification in the LGA is Class 4 and Class 5 covering 32% of the LGA, being of moderate capability and well suited for extensive livestock grazing. Cropping, horticulture and intensive animal grazing, could occur with specialised management practices.

Approximately, 4% (10,000 hectares) is classified as Class 3 land, being highly capable of sustaining high impact land uses such as cropping and horticulture.

A large portion of land in the Dungog LGA is Class 7 land (44%) generally located to the north of the Shire and is identified as nature conservation areas.

Further detail on these stats can be found in Table 5.2, 5.3, 5.5, 5.6, 5.7 of the Background Review Pages 82,83,86,87,88

Beef Cattle is a key industry accounting for;• 17% of stock in the hunter • 25% of total value of

agriculture in the LGA

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Table 4.2 Land and Soil Capability definitions (Page 58)

Table 4.3 Land and Soil Capability Dungog LGA (Page 60)6

Both the land and soil capability and climate characteristics influence the agricultural land use within the LGA. Respectively the areas and map of land use within Dungog LGA and demonstrate that almost 63% of the land area is utilised for extensive livestock grazing.

Table 4.4 Estimate of land use in the Dungog LGA (Page 60)

Agricultural businesses generally operate on holdings that are comprised of several allotments.• 83% of holdings (3,621 holdings) are less than 60h ha accounting for 16% of total

area• 8.1% of holdings (351 holdings) are greater than 120 ha and accounts for 63% of

rural land

Table 4.5 Estimate of land use in the Dungog LGA (Page 62) 7

Agricultural industry output

Table 4.6 Gross value of agricultural production – Dungog. Background review (Page 64)

The Dungog LGA contributes approximately 0.63% of the gross value of agricultural production in NSW, with the majority of value being from broiler production followed by livestock slaughtering's and livestock products.

Table 4.7 Livestock numbers (Background Review Page 64)

The agricultural supply chain

Following recovery from drought conditions the State-wide value of the beef cattle industry rose between 2018-2019. The beef cattle industry is important across the Hunter Region which is uniquely well placed for cattle breeding due to the consistent rainfall patterns and climatic conditions. The industry also has a well-established supply chain that provides good access to local processing facilities as well as local and international export markets

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Identifying locally important agricultural lands in Dungog

The suitability criteria is adapted from the NSW DPI Upper Hunter Beef Profile (2013) which produced mapping of land suitable for beef cattle grazing in the Muswellbrook and Singleton LGA’s. Additional criteria relevant to the Dungog LGA has been included in consultation with NSW Department of Primary Industries. The criteria can also apply to land suitable for a range of other complementary agricultural land uses, such as dairying, equine or horticulture and can additionally support value adding enterprises such as ancillary tourism and recreational uses.

Rural issues paper (Page 163)

A larger version of this mapping can be found on Page 164 and 165 of the Rural Issues Paper as well as a map showing the individual criteria

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Rural lands & Land Use

As seen in the table below the zoning utilised generally for rural lands in the Dungog LGA is RU1 Primary Production.

The standard template LEP has multiple rural zones available for use. The Dungog LEP 2014 only utilises the RU1 primary production zone and the RU5 Village zone.

The rural lands strategy seeks to introduce addition zones to increase flexibility and appropriateness of zoning.

Explanation of zonings

RU1 Primary Production

This zoning is applied to land where the principle function is to undertake a type of commercial primary industry such as extensive agriculture, intensive livestock and intensive plant agriculture, aquaculture and forestry. Essentially the zone aims to utilise the natural resource base as in a sustainable manner.

The rural lands strategy will utilise this zoning by applying it to those lands that are currently being utilised for agriculture or have been identified as ‘locally important agricultural land’.

Zonings to be utilised for primarily for agriculture

RU4 Small Lot Primary Production

This land zoning is not currently utilised in the Dungog Local Environmental Plan 2014 and is used by adjoining Councils. The introduction of this zoning will be for lands that are not identified as ‘locally important agricultural lands’ but will be for lands where the primary use is for agriculture and commercial primary production. This zoning will have an associated minimum lot size provision smaller than that of RU1 primary production. The intent of utilising this zone will be to promote and encourage diversification in agricultural and provide opportunity for affordability and emerging industry.

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RU2 Rural Landscape

This land zoning is also not utilised in the Dungog Local Environmental Plan 2014. This zoning will be applied to those lands that have scenic landscape qualities; wherein primary production practices that are compatible to the landscape can be undertaken, such as extensive agriculture or intensive agriculture. The permitted uses for this zone are more limited than the RU1 Primary production zoning though still provide flexibility.

Zoning to be utilised to protect and manage environmental lands

E2 Environmental Conservation

This zone is generally intended to protect land that has high conservation values outside the national parks and nature reserve system. The use of this zone needs to be justified by appropriate evaluation of the area in terms of meeting the core zone objectives of having high ecological, scientific, cultural or aesthetic values. A number of land uses considered to be inappropriate for this zone have been mandated as prohibited uses. It is anticipated that many councils will generally have limited areas displaying the characteristics suitable for the application of the E2 zone. Areas where a broader range of uses is required (whilst retaining environmental protection) may be more appropriately zoned E3 Environmental Management.

Zoning to be utilised for those lands that are not identified as ‘locally important agricultural lands’ or areas of high biodiversity values

E4 Environmental Living

This zone is generally intended for land with special environmental or scenic values, and accommodates low impact residential development. This zone may be applicable to areas with existing residential development in a rural setting, which still has some special conservation values. Where lands have higher conservation values, with more restrictive land use permissibility, an E2 or E3 zone may be more suitable than E4 zone

E3 Environmental Management

This zone is generally intended to be applied to land that has special ecological, scientific, cultural or aesthetic attributes, or land highly constrained by geotechnical or other hazards. A limited range of development including ‘dwelling houses’ could be permitted. This zone might also be suitable as a transition between areas of high conservation value and other more intensive land uses such as rural or residential.

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Minimum Subdivision Lot Size – Multi – Criteria AnalysisMinimum subdivision lot size (MLS) is an important tool in protecting and preserving agricultural land in the LGA. The calculation of an appropriate MLS is complex as there can be a number of contradictory issues operating at the regional, LGA and individual farm level

Table 10 – 1 Multi criteria analysis (page 172 of Rural Issues Paper)

Table 10-2 Multi – criteria analysis for minimum Lots size provisions (page 173 of the Rural issues paper. Further explanation is provided on page 174, 175 and 176)

Note: Given the MCA is testing outputs for the purposes of commercial primary production rather than lifestyle or hobby farm development, lot sizes smaller than 40 hectares have not been tested.

Considering minimum lot size provision on rural land is difficult and complex. An array of factors are utilised as listed in the criteria as well as considering the following;

The current MLS across the Dungog LGA and a determination of whether it is achieving the priority of the protection of agricultural land;

・ Consideration of MLS in surrounding LGAs and whether these provide guidance on an MLS at the regional scale (refer to Section 4.10 in the Rural Issues Paper)

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Explanation of minimum lot size provisions and zones (MLS)

RU1 Primary Production- Larger minimum lot sizes could be applied to locally important agricultural land.

RU2 Rural Landscape- The existing 60 hectare MLS could be retained for land away from centres and villages

where the character is rural and scenic rather than being characterised by biophysical value supporting production.

- Where land has scenic and rural qualities close to infrastructure and not suitable for rural industries smaller minimum lots sizes would be considered

- Where land is not identified as locally important agricultural land in areas that have limited transport accessibility could have a larger lot size. This would be to conserve existing large holdings and not increase development densities in limited areas of limited access

RU4 Small Lot Primary Production- Smaller MLS of 40 hectares could be considered where there is an existing pattern of

smaller lots or holdings and the land has generally not been identified as locally important agricultural land. This zoning is generally applied with a 10km radius of local centres and villages due to transport accessibility

- Smaller lot sizes of 20 hectares could be considered in areas with existing fragmented patterns to support the establishment of start up enterprises

RU4 Small Lot Primary Production zones locational criteria

Table 10.3 Primary Production small lots zone locational criteria

Mapping of investigation zones for the RU4 Small Lot Primary Production zoning are in the draft policy directions paper. . These maps are based on a 10km radius from towns and villages.

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Equine Opportunities in Dungog

Criteria for Equine Opportunity Land

a) Class 3 Land and soil capability and moderate to high soil fertility to provide well drained alluvial soils and highly productive pastures for lactating mares and their foals

b) Adjoining Class 4-5 Land and soil capability and moderately low to moderate soil fertility to allow for varied terrain and slopes to develop strong boned yearlings and for running dry mares

c) Existing beef cattle operations, or suitable land on larger landholdings over 120 hectares(noting beef cattle are typically run in conjunction with stud horses; to manage pastures, to help train horses and to diversify farm income

d) Land within 2km from regulated rivers (Paterson/Lostock Dam) or major river sources managed by Hunter Water Corporation to provide a reliable water source for equine needs and irrigation. Rainfall >900mm or alluvial ground water.

e) Clean air and attractive surrounding rural landscapes along the access routes used by clients and investors

f) Ready access to local quality lucerne hay and supplies in the broader Upper Hunter especially Muswellbrook, Singleton and Upper Hunter Shires where production is significant

g) No nearby risk of mining activity

h) Proximity to sealed main roads (5km travelling distance) and Newcastle Airport

i) Access and support from specialised equine education and training facilities (Tocal)

More information regarding this criteria and the mapping at a larger scale cane be found on Page 167 and 168 of the rural Issues Paper

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