The agriculture industry might be one of Victoria’s key economic drivers – producing more than $13 billion worth of product – but that doesn’t mean farmers should be treated as a piggy bank by their local councils.
This reckless disregard for the economic burden faced by our primary producers is perfectly captured by the nasty battle brewing in Ararat between the region’s civic leaders and its farming community.
The council last week voted, by a margin of 4-3, to scrap farm differential rates, meaning that farmers are now being asked to pay 100 per cent of a residential rate based on property values.
There has been widespread anger at this decision. The VFF hosted 150 local farmers on Monday who stand to be affected by the rate hike.
Some will see increases of more than 50 per cent on their rates notices.
It’s hard to imagine the public reaction the council would receive from any other group if a massive tax hike was arbitrarily introduced on their business.
This is not a land tax – it’s a tax on regional investment and impacts families.
In reality, the council is proposing to take several million dollars out of the economy and into its pockets, hurting farming suppliers and service providers in the general community.
Four councillors voted to scrap differential rates after agreeing last year to keep the rate at 55 per cent.
We need to ask why they changed their positions. What is the strategy? Do the councillors even understand their obligations for fit governance?
Council statistics show that last year, farms made up 24 per cent of ratepayers in the region and the proportion of the overall rates burden paid by farmers was already a significant 38 per cent.
It is an absolute disgrace that the council would vote to further disadvantage the local farming community.
Farmers fear that this dispute could create a precedent and lead to a domino effect where other councils might adopt similar policies.
Gannawarra Shire Council is set to debate changes to differential rates at its next meeting.
We can’t let Gannawarra be the first domino to fall.
As farmers, we need to unite together ensure our rights are protected.
David Jochinke, VFF president
