Agriculture
28 May, 2023
Farmers want rate change: submission to council
VICTORIAN Farmers’ Federation wants Loddon Shire to change its rates formula for agricultural land. The call follows a VFF assessment of proposed rate hikes by rural councils that show Loddon and Swan Hill farmers will be hit with the state’s...
VICTORIAN Farmers’ Federation wants Loddon Shire to change its rates formula for agricultural land.
The call follows a VFF assessment of proposed rate hikes by rural councils that show Loddon and Swan Hill farmers will be hit with the state’s biggest jumps.
VFF president Emma Germano said the solution for both councils was to implement a dynamic rating strategy.
“A dynamic rating strategy must be adopted that sees the active use of differential rating powers to counteract the valuation asymmetries between different property classes,” she said.
“This system has been successfully employed by other councils such as Ararat, Mansfield and Pyrenees.
“These councils in question are demonstrating that they are unwilling, despite having access and the knowledge to use a rating strategy that is fair on the whole community.”
Rises in the capital improved value of Loddon agricultural land will drive rate increases although the overall jump is the State Government-mandated 3.5 per cent.
Ms Germano said: “The farming community cannot be expected to continue to endure rate increases that result in less funds available to invest in farm businesses, create economic activity and provide local jobs.
“This threatens farmers’ security and the economic benefit that agriculture brings to these two shire councils.”
In the Swan Hill Rural City Council, the average rates paid for dryland farm assessments are set to increase by 20.4 per cent, while residential rates will increase by just two per cent.
“This is the largest farm rate rise across Victoria and is one of the most significant increases seen in recent years.”
In the Loddon Shire Council, where many farms were impacted by the 2022 floods, average farm rates are set to increase eight per cent, while residential rates will be effectively cut by eight per cent.
“This rate hike for farmers whose incomes were devastated by the recent floods is irresponsible and misguided of the council,” she said.
“As this is a particularly busy time for farmers in the region with crops being sown, the VFF is concerned that many local farmers will be oblivious to Council’s proposed rate hike. They therefore have little ability to be consulted.”
“The increase represents significant rates shock for farmers and will hurt business growth and productivity, which are ultimately help creates local jobs and protects farm businesses into the future.”
Community consultation on Loddon Shire’s draft 2023-2024 budget closed last week. Local VFF members said they had lodged a submission.