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HORSHAM Rural City Council had Victoria’s fourth highest increase in costs for farm properties, according to a Victorian Farmers Federation study.
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The federation examined 50 municipal government budgets for 2016-17 and calculated the increased costs to farms and residential properties.
Horsham Rural City Council’s rates notices and municipal charges resulted in a 9.32 per cent increase in costs to farmers, the study found.
Horsham council’s own figure was about eight per cent.
During the same period, residential properties in Horsham saw their council costs go up by 2.44 per cent.
The federation prepared the study in order to assist its members in challenging their draft municipal budgets and land valuations.
Horsham council Mayor Pam Clarke said the council was obligated by legislation to charge the same rate to all farm properties.
“It all has do to with the valuations of the farms,” Cr Clarke said.
“Some of the farms are selling for ridiculous prices in our area, $5000 per hectare.
“If a farm next door sells for a big price, the farmer hasn’t done anything but his value has gone up.”
Cr Clarke said it was just the way that rates worked, as set out by the state government.
Horsham council has a differential rate for farm properties equal to 80 per cent of the rate per dollar of capital improved value charged in residential areas.
Cr Clarke said farmers who might want to move or invest in the area should not be turned off by the federation’s report.
“They need to look further into it, because it means their farms are worth more money, so they’re sitting on a bigger asset,” she aid.
“I know that’s no consolation when your rates have gone up by a lot more of a percentage than the year before.
“I’m not being flippant about it because that can be a huge costs to farmers, but there is little we can do about it.”
Horsham council’s 2016-17 budget reduced the per dollar rate on farms by 6.4 per cent but brought in an extra $320,000 in revenue.
Yarriambaick Shire increased its farm costs by 2.12 per cent, which was slightly less than its residential cost increase.
Hindmarsh and West Wimmera shires increased farm costs by 2.89 and 3.2 per cent, both more than two percentage points higher than residential increases.