Moyne Shire councillors have been advised to reject an application to subdivide land near Koroit.
The officer's recommendation for a planning application to subdivide 4.35 hectares of land at 115 Penshurst-Warrnambool Road into two lots - with the second including an additional dwelling - is to knock it back.
Councillors will decide on the application at the October meeting on Tuesday.
The applicants want the land divided into a 2.834 hectare block and a 1.518 hectare block.
Officers advise the application would go against the council's policy of protecting agricultural land from fragmentation into smaller lots.
"During the application process, extensive consultation was undertaken by council officers with the applicant to explain the zoning of the land and outlining concerns that the proposal does not meet the purpose or decision guidelines of the zone, nor does it meet council's local policies," the report presented to councillors states.
The report states approving the subdivision would "encourage the further fragmentation of productive agricultural land". "The subdivision as proposed is likely to set a precedent that will cause significant future land use conflicts between the amenity expectations of residents living on rural residential lots in the Farming Zone with the surrounding productive farming activities," it states.
"Residents who decide to live on small lots in the Farming Zone are often adversely impacted in terms of dust, noise, odour, use of chemicals and farm machinery."
The report also references another application, which was rejected by the council but taken to the Victorian Civil and Administrative Tribunal by the owner of the land.
"During that hearing the representatives for the applicant for review argued that there would be no loss of agricultural land as a result of the proposal and that the application to excise the dwelling under Clause 35.07-3 should be supported," it states.
"The tribunal dismissed these claims and issued a verbal decision on the day of the hearing, making it clear that the purpose of the Farming Zone was not to allow additional small lots and the proliferation of dwellings, and that such subdivision would not contribute to the orderly planning of the area."
The issue of whether to allow subdivisions on farming land has proved controversial at previous council meetings.
At the June meeting, an applicant wanted to divide a 3.5 hectare land parcel with one existing dwelling into two smaller lots and build another dwelling on the second lot.
Council officers pointed out the land was within the farming zone and the planning scheme recommended against fragmenting farming land into smaller lots. Planning, building and health manager Robyn Olsen said the application was "not in keeping with any of the council policies".
However, it was approved.
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