VICTORIA's peak farm body has again hit out at local councils for lifting rates well above the pace of inflation.
The Victorian Farmers Federation is particularly incensed by Hepburn Shire's plan to raise 19 per cent more in rates from its farmers next year.
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Draft budgets released by rural shires in recent weeks show average rates will increase in many cases by 7-10 per cent.
VFF president Andrew Broad said the rises were "totally unacceptable".
"It's getting to the point of ridiculous and we have to look for a better way to fund our local councils," Mr Broad said.
VFF Midlands branch president Paul Righetti said Hepburn Shire could not justify its plan to raise $1.594 million from farmers next year, compared to $1.335 million this year.
"It's an unfair distribution of rates weighted heavily against people in agriculture," Mr Righetti said.
He said there were 6000 residential ratepayers in the shire contributing $6 million to council revenue but just 250 farmers would pay the $1.594 million.
This meant farmers would pay an average of $6376 in rates while residential ratepayers would pay an average of $1000.
But Hepburn Shire mayor Janine Booth said the higher rates for some farmers simply reflected the sharp increase in the value of farm land.
"Two years ago we introduced a differential rate for farmers of 70 per cent (of the general rate) to acknowledge ... they were shouldering an unfair (rating) burden," Cr Booth said.
"That has been eaten up by this latest revaluation so council may need to look at some other measures to help our struggling agriculture sector."
Municipal Association of Victoria president Bill McArthur said councils were facing "cost escalators" well above the rate of inflation.
"Over the last five years councils have increased rates by an average of about 6 per cent a year while costs grew on average by about 4 per cent a year," Mr McArthur said.
"Our costs have risen in excess of CPI so if we increased rates by less it would mean we would not be able to deliver the same level of services."
