Councillors adopted a draft 2016-17 budget at a meeting on Monday night, which included a general rates increase of 3.5 per cent, and a farm differential of 20 per cent.

Because this year is a revaluation year for council, the actual rate increases for individuals will vary based on property valuation increases.

A budget reported tabled at the meeting showed the average movement in property values across sectors, and the average rate increases.

The residential sector had an average valuation increase of 9.6 per cent, which translates to an average rates increase of 2.8 per cent.

The farming sector had the highest valuation increase with 14.6 per cent, which equates to a 7.6 per cent rate rise.

Commercial and industrial sectors will have an average rates increase of 0.1 per cent and 0.9 per cent respectively.

Mr McIntyre said it was unfair.

“Of all years, I thought this was an obvious one where the differential had to be increased,” he said.

“I thought 25 per cent would be more logical.

“There is no use giving commercial and industrial sectors a reduction in rates and expecting us farmers to pay to cover that.

“In 2014 council committed to closing the widening gap between the residential and farming sector.

“This year our rates are about five per cent above the residential sector, but the differential hasn’t increased.

“I haven’t had an income in two years. To have farming rates go up by more than the residential sector, who have an income and more ability to pay, would have to frustrate any farmer.”

Mr McIntyre highlighted a need for council to increase the farm differential in a submission to the Essential Services Commission earlier this year.

Council applied to the commission to increase rates by one per cent more than the state government’s 2.5 per cent rate cap for local government, which will take effect in July.

Mr McIntyre believes council should not be entitled to a cap increase.

“When the 2.5 per cent cap was first announced, we all thought ‘great’,” he said.

“We never expected to be still forced to pay a rate figure far in excess of the general rate. We thought under rate capping, council would not be allowed to do this.”

Council is due to find out later this month if the commission will grant a cap increase.

Cr David Grimble said the farming sector valuation could cause some issues.

“One might argue that a 14.6 increase in property values is quite significant to the farming sector, but it doesn’t necessarily mean that all properties are coming on the market and that all farmers are actually expanding,” he said.

“What we’re seeing is limited property sales reaching extreme results for various reasons. 

“Not every farming operation is doing likewise, but they’re being impacted by the burden of those rates.”