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The fire began at the front of the Appletree Boarding Kennels and Cattery 35 kilometres west of Wodonga.
The fire was adjacent to the southbound lane of the Hume Freeway. Ten Country Fire Authority units attended the blaze, bringing it under control within 45 minutes.
Sergeant Trent Buscall, of Rutherglen police, said the fire started from a vehicle towing an enclosed trailer.
"It looks like the vehicle heading southbound had a tyre blow out, causing the sparks to go into the grass and ignite it," Sergeant Buscall said.
"There's no property damage, and it's all contained - all in all, it was a great response by the local CFA units."
Owner of Apple-Tree Nichola Cutts said she was frightened by the fire because of the threat posed to horses at the back of her property that were quickly moved.
"It was very scary seeing all the smoke," she said.
"The driver lost the wheel and then continued to drive towards the Springhurst exit. This sparked the fire all the way down from our property to Springhurst.
"The Hume traffic slowed right down.
"We weren't too worried because we're well and truly fireproof and have plenty of water supplies."
The firefighters drew water from the dam on the property to put the fire out.
The CFA is continuing to investigate the exact cause of the blaze.
