A REVIEW of farm rates by the Bass Coast Branch of the VFF has revealed local farmers are paying a third more for their rates this year than they were five years ago.
The Victorian Government’s local government rate capping policy isn’t working according to the VFF, particularly for farmland along the coast.
VFF President Brett Hosking said farmers continue to get the raw end of the stick.
“We won’t stand idle and watch the burden of funding for key services rely more and more on the agricultural sector from rates to the fundamentally wrong Emergency Services and Volunteers Fund (ESVF).
“Farmers are wondering when the financial hits will stop.”
“When you’ve got one group of taxpayers in some cases facing double-digit rate increases, there can be no doubt the system is flawed,” said Mr Hosking.
“Some farmers face increases in the tens of thousands of dollars.”
VFF Bass Coast Branch has calculated the average farm rate assessment based on Bass Coast’s 2025/26 budget is $3,963 compared to $2,391 for commercial premises and $1,690 for residential ratepayers.
Residential rates have barely moved in 10 years according to the VFF.
Secretary of the VFF Bass Coast Branch Faye Tuchtan said differential rates for farmers are not discounts but adjustments reflecting the imbalance of the rating system.
“Farmers in general pay more in rates than urban areas,” said Ms Tuchtan.
“Rating structures rarely account for the ability of a farmer to pay.
“Land is a farmers’ working capital and should not be taxed.
“The farm soil provides the population with food and fibre.
"The fundamental principle should be that as the value of farmland increases the rate differential should be adjusted to reduce the rate burden paid by farmers.”
Rather than setting the farm rate differential at a fixed percentage of the general rate the Bass Coast Branch of the VFF has proposed a rating strategy for farmland with an upper and lower limit.
They have also asked for a reduction in the farm rate differential to at least 75%.
According to the VFF farmers may have significant wealth in the form of farmland but often a low capacity to pay for reasons beyond their control such as weather conditions or markets.
Faye Tuchtan and Graham Wood may be recently retired after farming in Grantville since the late 80’s but the day to day challenges faced by farmers are never far from their minds.
“At least I don’t have to pull on the gumboots anymore and feed out ” said Faye.
A major problem for Bass Coast farmers according to the VFF is the Capital Improved Value of the land which is impacted by the proximity of the Bass Coast to Melbourne and the occasional sale of large parcels of land on Phillip Island.
“One big sale of farmland puts the rates up for everyone,” said Graham.
Farm rates in Bass Coast have jumped from $3,000 to $4,000 in five years.
“Values have gone up because of the proximity to town.
“People from Melbourne like being in the country and close to the coast,” said Faye.
“Bass Coast Shire is very fertile country.
“Capital Improved Value (CIV) is set by the State not local government.
“They don’t assess farms individually”
Rates are a huge impost on farmers said Faye, especially when there’s a drought.
“Farming is a pure gamble.
“You rely on the rain, prices in the saleyards and the cost of fertiliser, feed and fuel.”
Graham Wood said what is needed is a five year rolling average for farm rates.
“It is not unusual for a farmer to go a couple of years without an income but still have to pay rates every year,” he said.
“A couple of big sales on Phillip Island could then be averaged out.”
“The ESVF which is a levy (or tax) is also a problem,” said Graham.
“Farmers will be paying three times what they were before on this levy.”
“Some years it is hard to make a profit.
“This year was extremely hard with no grass and no growth until spring.
“Not much hay was baled last spring because of the drought and some farmers had to buy in feed from Western Australia and Queensland.
“We’re so lucky to have been able to retire and not go through this drought,” said Faye.
“Big bills play on your mind.”