HOBBY farm sales are booming as increasing numbers of Australians seek their own slice of a rural idyll, more room for their family, or a chance to profit from the nation's agricultural export growth, say rural specialists.
Sales of blocks up to 40 hectares have been the most popular in Victoria, NSW, Northern Territory and Tasmania, according to analysis of the past 12 months' sales by Landmark Harcourts.
In Victoria alone, about 77 per cent of agricultural sales valued at nearly $8 billion were for smaller blocks or farms, with about 12 per cent for properties from 40 to 100 hectares and about 10 per cent for larger properties.
Reasons for the switch range from environmental conservation and self-sufficiency through to wanting a lifestyle change away from neighbours but within two hours' drive of a major city.
Marnie Lassen, commercial services manager with Trust for Nature, a not-for-profit that protects wildlife with the co-operation of private landowners, said a small but growing number of environmentalists are buying and then placing the land under a covenant for conservation.
Others, such as Donald Robertson and his wife, Janette, both medicos, were seeking a change of lifestyle within commuting distance of their work. The couple have a mix of sheep and share-cropping on their 87-hectare farm in Batesford, about 13 kilometres from Geelong, a major Victorian regional centre.
"The best part of owning this farm is a beautiful sense of space and freedom. It is like owning a private valley," said Dr Robertson, who still commutes to a nearby hospital for work.
Jamie Pollock, chief executive of Stockdale & Leggo, said sales of lifestyle and small hobby farms have increased by more than 40 per cent in and around Phillip Island, Victoria, during the past 12 months.
"It's a small island, small population, clean air and safe for the children," he said when asked what is attracting buyers, many of whom have built equity in family homes during recent bull markets.
Hobby farm areas around Melbourne and Sydney are typically within two hours' drive and serviced by highways.
State governments have also been attempting to encourage residents of capital cities to move out to regional areas, where populations have been declining, in order to boost commercial activity, build communities and increase employment.
Deborah Schaefer, a manager at National Stockyard Systems, which provides agricultural equipment, said a good season and improved prices were helping business.
"Business is very busy, including providing equipment to small farms," she said.
The number of farms around the nation fell by more than 10 per cent during the five years to 2011 due to consolidation, drought and urban expansion. Hobby farming does not usually provide the owner's main source of income.
Paul Brassil, a partner with PwC, said a small-scale farm could mean the owner is a primary producer for tax purposes, which impacts on tax reporting requirements.
Mr Brassil advises those considering commercial operations to review the list of indicators used to determine if an activity is a business or not, such as evidence of intention to make a profit.
Stewart Bunn, a manager with First National Real Estate, urged those considering a farm to understand the time involved, costs, new skills and dealing with a new environment.
Landmark Harcourt general manager Mark Brooke said the outlook was strong due to improved agricultural prospects following recent trade agreements, particularly with China, which were fuelling interest in the sector.
Hobby farm sales for the 12 months to May were subdued in drought-stricken Queensland and Western Australia, where residential prices have also been hit by the collapse of the mining boom.
In NSW, there was a 5 per cent increase in hobby farm sales to more than 7740, constituting 60 per cent of the $6.9 billion of agricultural sales.
The most popular area was the Capital Region, which is in the state's south-east corner bordering Victoria.
In Victoria, sales rose more than 2 per cent to about 6300, or more than 68 per cent of the $3.4 billion in agricultural sales. The most popular areas were around the regional hubs of Ballarat, Bendigo and Geelong.
Tasmanian sales rose more than 9 per cent to 1400, or 85 per cent of the $484 million invested in agricultural land. There was a 5 per cent increase in Northern Territory sales, or 76 per cent of sales.
Hobby farms represent about 5 per cent of agricultural land and 2 per cent of income.