Comment
WE have all heard the phrase that farmers have plenty of assets, but not much in the way of cash flow.
Whilst this isn't the case for all farmers, for many it's a reality.
Combine this with recent record land values and the fact we have annual valuation and there's a real risk farmers could be hit with unfair increases to their rates notices this year.
Usually we expect farmland to double in value over a decade.
However, we've been seeing land double in the value within the space of three years and in some instances values have doubled within 12 months.
Instead of investing in their business, farmers are now worried they will need to save more to pay their rates.
The recent Local Government Rating System Inquiry has made it clear the responsibility sits with councils to help farmers avoid the rates shock brought about by skyrocketing property prices.
Councils can no longer just blame the state government for inequitable rate rises.
That's why we are urging them to reach out to the VFF to help understand farmer's rating challenges.
We've seen councils adjusting their rates based on the total change in land value across the entire council, instead of adjusting the rates for each class of property.
Ultimately this means the rating burden is increasingly being forced onto farmers, while some residential ratepayers get a rate cut, even when their property value has increased.
If average farmland values increase by 20 per cent, the rate in the dollar should be cut by 20pc If residential values increase by two per cent, then the rate in the dollar should be cut by two per cent.
We must ensure we get a fair deal in terms of rates to help ensure our future growth.
