THE mayors of two neighbouring shires have urged the Victorian Government to help ease the financial burden on dairy farmers by providing a subsidy on municipal rates.
The estimated economic impact to the Shire of Campaspe following the decision by processors, Murray Goulburn and Fonterra to retrospectively cut farm gate milk prices is $59 million, according to Cr Wilson.
There are currently 492 dairy farmers across the shire.
Meanwhile, the financial downturn to Gannawarra is estimated at $25 million.
The estimated economic impact across the region is estimated at more than $90 million.
Gannawarra mayor, Cr Lorraine Learmonth said the rate relief would provide some reassurance, but wouldn’t cover mostly young farmers who lease or operate through farm sharing.
“There would be no benefit for young farmers and the next generation of dairy farmers,” Cr Learmonth said.
“Our main concern lay with young farmers and assisting them amid rising irrigation costs.”
Cr Wilson has written to the Minister for Agriculture, Jaala Pulford to ask the government to help ease the financial burden on dairy producers.
The government has confirmed council rates relief for dairy farmers is an option it is considering as it prepares to offer more support to the struggling sector and decides how to spend $4.5 million of support that is yet to be allocated.
“We are consulting with farmers, community groups and local councils on the best way to allocate the $4.5 million community fund,” Ms Pulford said.
“Rate relief is just one of the suggestions that some farmers have raised and will be taken into consideration as we continue to consult over the next several weeks.”
Cr Wilson said government-funded rate relief, which was offered during the drought, is practical and a “very simple process”.
“Council’s really don’t have an option not to receive rates,” he said.
“We need to receive the rates because we need the money to be able to maintain the infrastructure, importantly rural roads.
Cr Wilson said dairy farmers make significant planning, operational and budgeting decisions based on an expected milk price.
“While farm income is directly affected, the flow-on job losses are also of concern, estimated at 300 from the dairying sector, or around 20 per cent of the sector’s workforce,” he said.
The further flow-on affect across the region for goods and services will add a possible loss of a further 100 jobs.
“The figures are alarming, however it’s not all doom and gloom for our dairy sector,” Cr Wilson said.
Leader of the Victorian Nationals, Peter Walsh said the government could afford to offer rate relief.
“You’ve got a government that’s sold the Melbourne port. The dairy industry is the biggest user of that port,” the Member for Murray Plains said.
“We need to maintain the base of the industry into the future, particularly the younger people, and they’re the ones that are most at risk through what’s happening with Murray Goulburn and Fonterra.”
