Farms that operate within 100 kilometres of central Melbourne will be protected from encroaching urban growth, with new rules set to restrict subdivision and residential and industrial development near agricultural land.

The farmland that fringes Melbourne produces 41 per cent of the city’s food needs and 80 per cent of its vegetables, but faces growing threats, including climate change, unpredictable rainfall, population growth, conflict between farming and non-farming neighbours and distorted land prices, a state government review found.

In response the government will introduce planning controls that protect the city’s green wedges and its peri-urban farmland will be strengthened, including a special new overlay to safeguard the irrigated market gardens of Werribee South and Bacchus Marsh. Access to recycled water for those farms will be prioritised as part of the controls.

Farmers within the 100-kilometre ring will also be given a strengthened “right to farm”, the government said, with the onus put on new non-farming neighbours such as tree changers to mitigate the impacts of agricultural activity, such as noise and odour.

Similar “agent of change” principles have been applied to residential developments that are built close to an existing live music venue.

New controls on the scale of group accommodation, exhibition centres and hotels will also be put in place in Melbourne’s 12 green wedge zones. New data centres will be prohibited in the green wedges, as will subdivision of land beyond the minimum lot size.

The protections for agricultural land against competing urban uses will also be applied to extractive uses such as quarries, which often operate inside green wedge zones.

Planning Minister Sonya Kilkenny will release the Green Wedge and Agricultural Action Plan on Saturday, outlining a focus on balancing competing land use needs for housing and farming on Melbourne’s outskirts.