Despite reassurances from officials that such a move is not on the cards, the UFU this week called on the Minister for Finance and Personnel to clear up the issue and confirm publicly to farmers that a 'land tax' will not be introduced now or at any time in the future.
The Union says introducing rates on agricultural land would be completely unfair.
UFU President Kenneth Sharkey said: "Farmers along with everyone else pay their rates bills and contribute to Government finances. The rates system must be fair and equitable. For the Government to consider heaping an extra rates burden on farmers and land owners would simply be a very crude and unfair way to raise more money for the Northern Ireland Government. This policy is not in place in GB or the Republic of Ireland and we could not accept a proposal which would place local farm businesses at a competitive disadvantage".
The UFU also highlighted that such a proposal would not pass a Rural Proofing test.
The Union also highlighted that with animal feed costs soaring because of a global shortage of grain, farmers have enough additional costs to worry about without the Assembly adding to their problems".
The UFU understands that the Department of Finance and Personnel does not intend rating agricultural land under the current rating system.
However longer term changes to the rating system are being considered and one option which has been tabled and discussed within Government is the option of Land Value Taxation.
The University of Ulster has conducted work looking at the use of this mechanism in other jurisdictions and has presented initial findings to DFP.