Canegrowers' council plea as residential sites hurt growers

The request came ahead of the local council's budget vote scheduled for this week.

Canegrowers Mackay Chairman Kevin Borg said that despite discussing "the inequitable rating system" on rural and cane categories, before and after the 2023/24 budget, not enough had been done to remedy growers' rate concerns.

"Cane farming land is being challenged by the pressures of our city's growth," he said.

"The city has expanded, taking up a large portion of cane land in and around the alluvial delta of the Pioneer River. Some of the best, most productive growing land has now been taken up by housing, manufacturing facilities and concrete pathways."

Despite "strong support" from the Queensland government to develop the cane sector, the group said there was an urgent need to preserve land under cane with mills being an "integral asset" to ensuring the viability of the industry.

Canegrowers also stated that a cents-in-the-dollar rating of cane land, more in line with the charges for large workshop enterprises rather than rural land, had been maintained by council.

Mr Borg said growers struggled to pass on increasing costs to absorb rates bills due to the price received for their sugar.

"We are heavily exposed to the fluctuations of world market prices, making us price takers and not price makers," he said.

"Most businesses can increase their prices to absorb cost increases. Cane growers absolutely do not have that liberty."

Canegrowers stated that according to Mackay Sugar milling area data recorded by the Mackay-based organisation, nearly 12,000 hectares of land was taken out of cane production since 2007.

Mr Borg said he appreciated that council had reduced the cents in the dollar rate from 2.77 to 2.25 on the cane land category last year, which brought savings to some growers, but not to some 40 per cent of growers who experienced steep rates increases.

According to Mr Borg, some growers reported rates in excess of $10,000, putting the region on par with the highest cane land rates of comparable category 4/5 councils.

"We have heard from growers who have faced rates bill increases since the last round of land valuations, of over $18,000. This is unacceptable," said Mr Borg.

"The ratings structure separated cane out from other rural land in 2007, privileging other agricultural pursuits over cane. That is unreasonable...the majority of cane farms are family-run enterprises that contain family homes."

Mayor Greg Wiliamson said almost 60 per cent of properties in the cane farming category had an overall reduction of rates in 2023-2024.

"Those who experienced an increase, it was less than $100 per year for 74 per cent of them,'' he said.

"In comparison, only 1.6 per cent of residential properties experienced a decrease in rates in 2023-2024."

Mayor Williamson said council had provided that relief for cane farm properties after recognising the impact of significant increases in land valuations by the state government.

He said council reduced the cents in dollar for cane growing categories by 20 per cent.

In 2022-2023, the rate was 2.78 (cents in the dollar), dropping to 2.25 in 2023-24.

Mayor Williamson said the total land valuation of category 3.1 Cane Farming was far greater than that of 4.1 Other Rural.

"Therefore, the cent in the dollar cannot be simply adjusted to the same as Other Rural,'' he said.

"If council were to change the ratio of rating revenue for one category, to provide a benefit to that category, an increase for ratepayers in another category would be required."

Mayor Williamson said council was unable to comment further on 2024-2025 until after the new budget was adopted this Wednesday, June 26.

"But, as always, council has considered the whole region in the building of the budget to achieve the most fair and equitable outcomes."