Kaikoura farmers are celebrating a much-needed saving on their rates bill this year after a successful challenge from Federated Farmers.
The District Council has agreed to charge semi-rural and rural ratepayers slightly less than their urban counterparts, saving the average farmer almost $900 a year.
Karl Dean, Federated Farmers North Canterbury president, says it’s an incredible result at a time when farmers are under huge pressure financially.
“A dollar saved is a dollar earned, so it’s great to be able to get this kind of win for our local members in the Long-Term Plan,” Dean says.
“Farmers are really battling with high costs and low returns this season, and I know they’ll appreciate having a little bit more money to go around.
“In terms of a return on investment, we’ve been able to save local farmers more than the price of the Federated Farmers membership each year on this one issue alone.”
The win comes after Kaikoura District Council set out last year to review its funding sources, known as the rates review, and asked the public for feedback.
The initial review didn’t include any change to the general rate ‘differential’, which is the difference what urban and rural ratepayers pay for the general rate.
“Federated Farmers spoke up, calling for a reduction in the rural contribution to general rate income,” Dean says.
“We made a strong case that farmers don’t really benefit from things like parks, walkways and playgrounds in the same way urban ratepayers do.”
Kaikoura District Council agreed, reducing the differential on the general rate from 90% to 80%, which means Kaikoura farmers pay rates on 80% of their property value compared to urban’s 100%.
Depending on farm type and location, the reduction will save the Long-Term Plan’s benchmark farm $896 per year – and potentially more the higher the farm’s value.
“This kind of advocacy by Federated Farmers shows the true value of what we do, going in to fight for rural people and getting these kinds of results,” Dean says. “I also want to thank all the local landowners who helped with the submission.”
Federated Farmers, New Zealand’s leading independent rural advocacy organisation, has established a news and insights partnership with AgriHQ, the country’s leading rural publisher, to give the farmers of New Zealand a more informed, united and stronger voice. Federated Farmers news and commentary appears each week in its own section of the Farmers Weekly print edition and online.
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