GRAIN Producers SA is calling on state and federal governments to support subsidies for council rates in drought-affected areas.

Chief executive Brad Perry said relief from fixed overheads such as council rates and the Landscapes SA levy would provide immediate breathing room for grain producers facing one of the most financially and emotionally challenging seasons in recent memory.

“We’ve advocated for local government rate rebates and relief from state-based levies to be seriously considered as part of the broader drought response,” he said.

“Similar support was available during the 2018-19 drought, when the state and federal governments provided funding to councils to subsidise rates. 

“The mechanism already exists — it just needs political will to activate.”

Offering rate or levy relief would help producers rebalance their books in a year where revenue was bleak, coming off 2024 when many grain producers were unable to recoup costs, Mr Perry said.

“For many families, it’s about dignity — keeping the lights on, paying school fees, or meeting mortgage repayments without going further into debt,” he said.

“At the business level, we’re hearing from growers who are scaling back cropping programs, pausing infrastructure investments, and cutting labour budgets just to get through the year.

“Every dollar saved through targeted relief can help preserve critical operations and position them to bounce back when the drought breaks.”

Some regional councils rely on primary producers for up to 70 per cent of their rate revenue.

Primary Producers SA is working with the Local Government Association of South Australia on a proposal for the state government to support councils that defer rates for farmers and businesses under hardship provisions, to ensure councils’ cashflow and services are not impacted.

LGA president Mayor Heather Holmes-Ross said regional councils were seeing firsthand the toll the drought was taking on farmers and communities.

“These are some of the driest back-to-back seasons on record, and the need for action is urgent and real,” Mayor Holmes-Ross said.

“The LGA and our members are continuing to push for more drought support to ease the burden on farmers and the towns that rely on agriculture.”

Mayor Holmes-Ross said the LGA was also seeking urgent changes to the state’s Landscape Levy, which councils collect on behalf of the state government.

“Councils must pay the levy in full, regardless of whether they’ve collected that revenue from ratepayers, placing unfair pressure on their budgets and services,” she said.

PPSA chair Professor Simon Maddocks said the drought was also affecting rural businesses such as shearers and transport companies.

He encouraged ratepayers struggling to pay council rates during the record-breaking drought to speak with their councils about payment plans or deferred payments.

“Don’t be hard on yourselves,” Professor Maddocks said.

“Talk to your council about what mechanisms they have for relief. 

“All councils have hardship provisions, and these discussions can be held confidentially.” 

Hardship measures in place

Wakefield Regional Council

WAKEFIELD Regional Council mayor Rodney Reid says ratepayers experiencing difficulty paying their rates will be treated with respect, compassion and confidentiality.
He said the council’s hardship policy focused on helping applicants maintain control of their financial situation, and included payment plans or deferment options.
“Council’s finance team reviews each case and aims to provide a suitable payment plan for those experiencing hardship,” he said.
“We will not engage in legal action or commence proceedings for debt recovery if the ratepayer has agreed to a payment arrangement and continues to adhere to its terms.”

Yorke Peninsula Council

A YORKE Peninsula Council spokesperson said the council had not received any requests for rate relief due to hardship in recent years.
“Where appropriate, deferments can be granted in line with the policy, which aims to provide fair and compassionate relief while maintaining the sustainability of council services,” they said.
“Council is very aware that ongoing dry conditions have placed significant strain on our local farming community.
“This has flow-on effects throughout the region, impacting small businesses, families and the broader local economy.”
The spokesperson said the council’s Economic Development team could assist those affected by the drought by connecting them with South Australian Government services or exploring diversification opportunities such as agri-tourism.

Barunga West Council

SPEAKING at the Barunga West Council monthly meeting on June 10, interim chief executive Paul Simpson said the council had not received any requests for hardship provisions due to the drought.
“The mechanisms are there for those who are struggling, and we’re happy to enter into arrangements,” he said.

Copper Coast Council

COPPER Coast Council chief executive Dylan Strong said the council was not currently assisting any ratepayers with financial hardship specifically due to drought.
“Council understands that circumstances can sometimes make it difficult to pay rates, and as such provides practical solutions for ratepayers who may be experiencing genuine financial hardship,” he said.
“The drought is placing immense pressure on our primary producers and local businesses, leading to significant financial strain. This, in turn, impacts the broader local economy.”
At its monthly meeting on June 4, elected members voted to update the council’s financial hardship policy. The updates included enabling ratepayers to apply to have fines or interest on unpaid rates waived if financial hardship could be established, and allowing council to offer discretionary rate rebates of up to 100 per cent, provided the requirements of the rate rebate policy are met.