The Gannawarra Shire Council is calling on the Victorian government to provide rate relief funding for farmers and small businesses in the region.
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Gannawarra Shire mayor Lorraine Learmonth said the council had written to Premier Daniel Andrews because only the state government could approve rate relief for affected municipalities.
"Many of our farmers and small businesses are struggling," Cr Learmonth said. "Obviously when farmers aren't making any money, they're not buying from small businesses so the whole town struggles.
"In our area, there have been 55 dairies that have been forced to close down. Those people will have no income so a big rates bill will be a big burden for them.
"If they can have some percentage of rate relief, it will help them breathe a bit easier."
Cr Learmonth said the Gannawarra Shire was one of 10 local government areas in Victoria to have been drought declared.
She said the state government had provided rate relief to the parts of East Gippsland that were experiencing successive droughts.
"We're advocating for the Gannawarra Shire but I'm sure other councils would also advocate," Cr Learmonth said.
"There are six councils along the Murray River who are all in very much the same position."
Minister for Agriculture and Regional Development Jaclyn Symes said the state government was already providing support to farmers in the Gannawarra Shire.
"We're getting out and delivering our drought support package, with $31 million of targeted support available to the Victorian farming communities who need it most," Ms Symes said.
"That takes our support since September, 2018 to over $81 million."
The package includes mental health support, machinery improvement grants, support for community and events, bore licence fee waivers, and improvements to emergency water supplies
"We've listened to farmers and business owners doing it tough, and this package reflects what they need for both immediate relief and preparedness measures against future challenging conditions," Ms Symes said.
The Wellington, East Gippsland and Mildura shires have received one-off payments from the state government, which the councils have then used for rate relief.
"The Goulburn Murray Irrigation District, including Gannawarra Shire, is facing both difficult seasonal conditions and market challenges," Ms Symes said.
"As well as targeted support for dairy farmers experiencing high input costs, farmers in the region will be eligible for direct financial assistance through the Farmers' Drought Fund."
The Gannawarra Shire was one of two councils in northern Victoria to receive $1 million in drought relief funding from the federal government.
The Drought Communities Program funding was allocated for local priority community infrastructure projects and other drought relief projects.
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