The increases come as a result of new three-yearly Quotable Value property revaluations notified last September.
“They flow into Whangarei District Council rates at the worst possible time for dairy farmers,” Blackwell said.
The federation submission to the council’s annual plan process said large rural properties faced a 23% increase in the general rate, considerably exceeding the percentage increases for residential, lifestyle and commercial premises.
The council had said the rates increases flowed from a 14.6% rural property valuation increase.
Federated Farmers produced Real Estate Institute figures saying the dairy farm price index in March was down 15.9%.
“The value of most farms has decreased over the past year, not increased and farmers should be experiencing rates reduction, not increases.
“Many farmers will be scratching their heads in frustration and some in despair at WDC’s fiscal management and the unfairness of the rating system,” Blackwell said.
Federated Farmers urged WDC to review the recent property valuations, increase the uniform annual general charge component of rates to 30% from 23% and cap rural rate increases at 5%.
“This would align larger rural properties with the overall rate revenue increase and would in our view represent good proactive governance for a part of the community presently experiencing challenging economic circumstances.”
The federation also wanted the council to make available full or partial rates remission and postponement available to all ratepayers, including dairy farmers, experiencing extreme hardship.
It also called for a move towards rating based on land and capital value, not just land value, which would bring the council into line with most others.
The council budgeted on operational revenue of $135 million and rural rates contributed just under 10% of total general rates.
The average proposed rural rate would be $3269, compared with the average residential rate of $1717, including more than $600 for sewage disposal, which most rural households did not pay.
Finally, Federated Farmers called on the council to defer payment of the first rates instalment in the new financial year to October 20, to coincide with the first sizeable milk cheque of the new season, followed by monthly instalments until the following June.
Elsewhere in Northland the Far North District Council notified a rates increase for dairy farms of 5%, with the average farm paying about $6000.
The Far North was on the rating revaluation schedule for later this year.
Kaipara District Council, under management by a commissioner, proposed rate increases for dairy farms averaging 3.5%, which was the average across all property categories.
