VICTORIAN farmers have renewed a call for a $1.3 billion fuel crisis payment in the upcoming Federal Budget to relieve primary producers nationally.

Predictions of rising inflation figures and increased input costs have prompted the call to Federal Treasurer Jim Chalmers and Agriculture Minister Julie Collins, the Victorian Farmers Federation said.

VFF acting president Peter Star said the proposal offers a practical and efficient way to support farmers dealing with ongoing fuel and fertiliser cost pressures.

“Every single one of our farm input costs are skyrocketing and it’s fast approaching unsustainable levels for many farmers.

“We’re calling for fair financial support to ensure farmers can keep their head above water,” he said.

“The latest inflation figures have fuel surging more than 30 percent in March.

“Support at the farm gate can help keep farmers farming and that flows down through the supply chain and into the hip pocket of consumers at the checkout,” Mr Star said.

The VFF said the proposed payment would mirror the existing fuel tax credit system, using the 52.6 cents per litre rebate farmers have already reported through their business activity statements, making it straightforward to administer.

The VFF said the measure is necessary to ensure fairness, after farmers were excluded from the Federal Government’s temporary fuel excise cut for motorists, that cost $2.55 billion.

Mr Star said the proposed payment would provide meaningful relief to farm businesses across Victoria.

“Based on the ATO calculator, a grain grower using around 75,000 litres of diesel annually could receive about $40,000.

“While that amount may not dramatically change cropping programs, it helps provides certainty for an industry that demands it.”

Mr Star said recently polled VFF members said they are facing price hikes for inputs in the hundreds of thousands of dollars.

“This proposal aims at targeting support to help ensure these hikes don’t inevitably end-up hitting consumers,” Mr Star said.

The VFF has presented the proposal to Minister Collins and is calling for it to be considered by Cabinet as part of broader cost-of-living and regional support measures.

Mr Star said the payment would recognise the essential role farmers play in Australia’s economy while addressing the disproportionate cost pressures faced by regional industries.