President Peter Tuohey said the farmers federation had called for an overhaul of the state’s 2.5 per cent Fair Go Rates Cap after unfair hikes to farmers were revealed for the next financial year.

Examples of these rate differences were noted in the 2016-17 draft budgets of both Moyne and Corangamite shires.

While the average increase of residential rates in Corangamite shire was budgeted at 2.17 per cent, the average increase in farmers’ rates was higher, at 2.7 percent.

In Moyne Shire the average increase in residential rates was noted at 0.95 per cent while rural rates were budgeted at a much higher average increase of 3.42 per cent.

“Time and again we’re seeing councils cranking up the farm rate rise,” Mr Tuohey said.

“Many local governments simply hit the farm category with an above-cap rate rise and then keep other categories below, to deliver an average of 2.5 per cent or under.”

Mr Tuohey said the farmers federation had been concerned farmers would cop the brunt of the rates burden. 

“Ultimately, the use of a property based rating system is broken,” he said.

“It seems that no attempt towards a ‘fair go’ rate will fix the disproportionate burden of the rating system."

Moyne mayor Colin Ryan declined to comment on the rate hike within his shire.

Corangamite shire’s chief executive Andrew Mason said all rates were calculated based on property value.

“The land is valued by independent valuers and rates are then calculated based on that property value,” Mr Mason said. 

“As a council, we don’t make those decisions.”

Mr Mason said it was a difficult and technical issue to explain. 

“We recognise the importance of the farming economy of the shire and we have a strategy of lowering farm rates (at) one per cent every year,” he said. 

“All rural councils need to be mindful of how much rates farmers are paying because of the importance they have to the local economy.”