However, the VFF says more must be done to ensure farmers can access and implement the technology, particularly in the face of deepening drought conditions.
The draft regulations, now open for consultation, would pave the way for the use of GPS-enabled virtual fencing collars for livestock, which are already legal and widely used in other Australian states.
VFF president Brett Hosking said the announcement was a long-overdue recognition of the need to modernise Victoria’s outdated rules.
“This is a win for common sense and a testament to the advocacy efforts of the VFF and our members,” Mr Hosking said.
“Virtual fencing is already proving its worth in other states. It’s time Victorian farmers had the same opportunities to improve livestock management and reduce pressure on our land.”
Mr Hosking said the VFF and UDV had worked closely with manufacturers, researchers and regulators to support the responsible rollout of the technology.
Dairy Farmers Victoria president Mark Billing said he had advocated for a regulatory framework supporting the technology, rather than a legislative framework.
“For the dairy industry, this is good news,” Mr Billing said.
“Regulatory change means a short time to adopt the technology on commercial farms. It enables us to have access to this technology by the end of this year.
“When I first saw the prototype for this technology many years ago, straight away I could see the potential for its implementation on-farm, and that has evolved since with integrated health data, labour saving and safety at the forefront of its implementation.”
Mr Billing said he was looking forward to installing the technology on his own farm.
UDV president Bernie Free noted the technology’s potential to transform operations for dairy producers.
“Dairy farmers have been ready to adopt virtual fencing for years,” Mr Free said.
“We’ve done the groundwork, and while this announcement is welcome, we can’t afford to wait much longer.”
While recognising this as a positive step, the VFF urged the Victorian Government to make existing drought and preparedness funding eligible for virtual fencing and stock containment infrastructure once the regulations are finalised.
“The timing of these changes is critical,” Mr Hosking said.
“We’re in the middle of a challenging season, and farmers need every tool available to manage feed, protect soil, and rotate stock efficiently. Virtual fencing is one of those tools.
“Once regulations are in place, we want to see support made available, not just through words, but with practical funding that helps farmers adopt this technology where it’s most urgently needed.”
The VFF also said it was disappointed over recent policy decisions, such as the Emergency Services and Volunteer Fund levy, which has added pressure to rural communities already managing severe cost and climate pressures.
“We won’t forget the government’s decision to ignore rural voices on the unfair levy. But we’ll always support policies that help farmers do their jobs better, and virtual fencing is one of them,” Mr Hosking said.
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