Two Gippsland councils awarded drought funding by the state government are set to vote next month on how the money should be spent.
A drought reference group advising East Gippsland Shire Council, which received $1.51 million from the government, has recommended the funding be used for rate relief.
"We had a drought reference group meeting [last week] that was attended by various agencies and farmers and members from our local parliament and a lot of ideas were thrown up about what farmers need but the broad consensus was rate relief is the best way to assist our farmers," East Gippsland Shire Council mayor Natalie O'Connell said.
"That recommendation has gone up to the council and the council group will have a broader discussion and then it will come to our November meeting to discuss and vote."
East Gippsland farmers pay almost $5 million in farm rates annually, with the government funding set to cover 30 per cent of the shire's total farm rate bill for 2019/20.
"It's clear this process needs to be very simple and effective so that the money can get out the door," Ms O'Connell said.
"[Rate relief] frees them up to pay other bills that are sitting on the table ... so this will have a flow-on effect for other small businesses who are doing it tough and rely on farmers to do their shopping or buy farm equipment.
"Indicative modelling shows if rate relief is given it would be an average of $500 per rate notice but some will be far greater and some will be less than that."
Wellington Shire Council mayor Alan Hall, whose council received $3.3 million in drought funding, said council would vote on a use for funding at an ordinary meeting on November 6.
"Whilst we haven't reached a decision in regards to how it will be spent, there is a reasonably high expectation the funds will be applied to rate relief," he said.
"Quite simply we're looking for the very best outcome we can get for our farming community because when our farmers are hurting, it impacts the rest of our local economy too.
"Rate relief has been where all of these discussions have been going so we'll wait to see our ag reference group's recommendations and vote on that in November."
Bryce Eishold
Bryce is a senior journalist with Australian Community Media's Stock & Land where he reports on all aspects of agriculture. Bryce is also the president of the Rural Press Club of Victoria. Email Bryce at bryce.eishold@stockandland.com.au.
Bryce is a senior journalist with Australian Community Media's Stock & Land where he reports on all aspects of agriculture. Bryce is also the president of the Rural Press Club of Victoria. Email Bryce at bryce.eishold@stockandland.com.au.
