Hobby farmers strike gold in the face of the urban sprawl

Or to be more precise, $1,190,476 per acre - or better still $85,000 for each square metre of dirt.

It puts some distance between the $20,000/acre paid regularly in Australia's richest farming postcode in Victoria's South Gippsland.

You've likely already guessed this buyer was likely willing to hand over a reported $25 million for the 21 acre hobby farm because of its rich subdivision potential on the outskirts of a booming big city, in this case, Melbourne.

A little farm located in the rural planning zone at 95 Kinnear Road in Mickleham sold a few weeks ago for what has been reported to be a jaw-dropping amount.

Mickleham is about 35km north of Melbourne's CBD but farm land around here has been swallowed up the urban sprawl at ever increasing rates.

A 214ha dairy farm was famously sold there in 2016 at a price believed to be more than $60 million.

At the time it was Victoria's most expensive farm.

After being owned by the Cocking family for more than a century - the cows are gone and the land has been split into thousands of residential lots.

About the same time, the story of Edward, Garry and Keith Troutbeck was shared around the world when their family's 25ha dairy farm at Mickleham sold for what is believed to have been $50 million.

Their parents bought the place in 1935 for 500 pounds.

Or, in 2018 the staggering price of about $200 million was paid for a 600ha beef property at Beveridge, just beyond Mickleham, in 2018.

Much of Mickleham is located in the government's "Green Wedge Zone" which was devised to protect farm land in a 100km radius of the city centre.

"The Victorian Government is committed to protecting Melbourne's green wedges and keeping farms on our urban fringes working and producing for generations to come," the government has said.

"Some of Victoria's most productive agricultural land is within 100 km of central Melbourne. As our climate changes, the ideal conditions of agricultural land become even more important to Victoria's food production."

With this latest multi-million dollar sale at Mickleham, agents from Biggin and Scott North, encouraged buyers to "experience a life of opulence through an enticing lifestyle investment opportunity".

"This exceptional property presents a unique and extraordinary investment opportunity that should not be overlooked," the agents said.

"As the neighbourhood undergoes its planned development and expansion, you have the chance to capitalise on the expected rise in property values."

The little farm has a five-bedroom home with two kitchens along with some livestock grazing paddocks with stock water supplied and a large dam located in the centre of the property.

"Experience the best of both worlds as you enjoy the scenic countryside while being within easy reach of dining, shopping, and conveniences, making it an ideal retreat for a fulfilling life that harmonises with nature without sacrificing city living's convenience," agents said.