Farmers with cellar doors and fruit stands should beware of huge new bills being slapped on them by the state government, NSW Farmers says.
Reports have spiked of family farmers being forced to pay up to $300,000 in land taxes to the NSW Government for diversifying their businesses with small farmgate sales and agritourism experiences.
Typically, farmland has been exempted from these taxes as it has been used to produce food and fibre for the nation - but NSW Farmers' Business Economics and Trade Committee Chair John Lowe said it was clear farmers were now being penalised for selling what they grew.
"Between drought, flood and every other challenge we face on farm, it's become harder and harder to make a living on the land - and that means farmers have had to adapt and diversify to simply survive," Mr Lowe said.
"Governments have encouraged this activity as a means to spread risk and deal with drought, natural disaster and other challenges - and we've loved seeing people from all over enjoy our cellar doors or cherry-picking adventures on farm.
"But now, we've been punished for innovating, diversifying, and opening our doors to our friends in the cities - and it could spell the end for many of our family farms."
