Northern Grampians Shire mayor Tony Driscoll said this was because the value of farmland had increased. 

“We know that many other rural councils are facing a similar story,” he said. 

Council estimate to raise nearly $5.4 million in rates from farmland in the proposed budget for 2018-19. 

This is a 25.5 per cent increase from 2017-18. 

The amount rates are levied at will potentially change in 2018-19 to 40 cents per dollar, in comparison to 47 cents per dollar in 2017-18. This will increase the cost of rates for farmers. 

“Farmers’ rates will increase because the value of agricultural land has seen a massive increase,” Cr Driscoll said. 

“Local government legislation restricts council’s ability to change that.

“This issue is likely to be further exacerbated because currently councils undertake land valuations every two years, by law. This may change to annual valuations in 2019.” 

The council and the Victorian Farmers Federation are due to meet on Friday.

“We are already working on this issue to see how we can address our concerns in future years,” Cr Driscoll said. 

He said he would also meet state government representatives and farmers to discuss the issue. 

“The Northern Grampians Shire Council encourages farmers to comment on the draft budget which is available for review until June 21,” he said. 

Victorian Farmers Federation president David Jochinke said rates were a business cost for farmers, but the increase was becoming not viable.

He said rates had increased because there had been an increase in the value of property assets. 

Mr Jochinke said he was working with councils on farm rates. 

“Land is a tool of trade for farmers,” he said.