THE Victorian Farmers Federation has urged all Wimmera councils to consider the importance of farm differential rates.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
In a letter to Horsham Rural City Council, federation president and Murra Warra farmer David Jochinke said differential rates were vital for farmers.
It comes after Ararat Rural City Council moved to scrap farm differential rates in May.
“While homeowners, commercial and industrial land users might only receive one or two rate bills, some farmers can be paying between three and give rate bills,” he said.
“The business model in agriculture means it is impossible for farmers to pass on rate increases commercially.”
Mr Jochinke said the entire system for funding local government needed to be reviewed.
“Over the years we have seen evidence of cost shifting by state government, which has impacted councils,” he said.
Mr Jochinke said the Horsham council plan acknowledged the importance of agriculture to the economy.
“However, there it doesn’t outline the actions council will take to ensure a thriving agriculture sector in the future,” he said.
Horsham councillor David Grimble said the farming sector was a highly regulated industry.
“There is regulations around chemical use and further red tape in managing native vegetation,” he said.
“Our rating strategy currently needs a review because rates are unsustainable and they haven’t been for a long time.”
Cr Grimble said if councillors looked at the rating cost on farming operations compared with the income generated by local government, it was disproportionate.
“There needs to be a review broadly across the local government sector,” he said.
“If we don’t have a review about how we generate our income, what we will see is an escalation in issues.”
Mayor Pam Clarke said a review of local government rates had been high on the agenda for the past decade.
“We are trying to get the government to look at other ways to fund local government,” she said.
Cr Mark Radford said it was important council maintained flexibility to adjust rates when required.
“Our rates vary with seasonal conditions,” he said.
“We are active in adjusting the farm differential, which was apparent during the drought years.
“It’s important we maintain the flexibility.”