Minister for Agriculture David Littleproud has written to all State Premiers and Territory Chief Ministers asking them to relieve farmers and drought-affected small businesses of council rates.
Minister Littleproud has also asked that drought-affected farmers paying leasehold to state governments be forgiven those payments.
"One of the things farmers constantly raise with me is whether the state government can relieve them of their rates," Minister Littleproud said.
"This would provide immediate, practical relief to communities hurting from drought.
"Rates are often a huge expense for farmers, and with no income coming in, paying them can be very hard.
"State governments should pay the rates on behalf of farmers and small businesses to local councils, who are also struggling with drought.
"The Federal Government is investing $7 billion into drought all up and it's time the states helped farmers with rates.
"Farmers produce the food we eat and we need to help them through tough times."
