Adams v Minister for Lands

[1989] QLC 19

[1989] QLC 19

 

LAND COURT, BRISBANE

3rd March, 1989

Re:Determination of Rent Second Period

GHPL 20/3664 (Goondiwindi District) Lessee's: B.M. and W.B. Adams

D E C I S I O N

The matter before the Court is the determination of the rent of the above selection for the second rental period which commenced on 1st July, 1986. The rent being sought by the Crown of

Grazing Area	2675ha @ $ 0.34 per hectare	=	$  909.50
Arable Areas	645ha @ $90.00 per hectare @ 2.5%	=	$1 451.25
$2 360.75

 

$2,361 per annum is based on an assessment made Mr I.R. Heppel, Land Inspector in the employ of the Department of Lands. The sum is the result of the following calculation:

The rent for the previous rental period of the Lease was fixed at 38.5 cents per hectare per annum ($1278.30). Such rent I am informed was made on the basis that the highest and best use of block was for grazing purposes.

The Lessees' are prepared to pay a rent of 50 cents per hectare per annum and say that 600 hectares of the selection is suitable for cultivation (Exhibit 2).  The subject selection is situated about three kilometres  southwest  of  Toobeah  with a  frontage to  the bitumen  sealed  Barwon Highway on the northern boundary.  Mr Heppel said that the selection comprised about 82% (2720 hectares) of level to low lying Coolibah country with an association of the Belah, Myall and Box with large areas susceptible to local flooding and about 600 hectares (18%) scattered, in varying size, pockets throughout the selection of mainly higher and reasonable quality lighter soil of Box, Sandalbo and Wilga forest with an influence of gum and carbeen in places.  The selection is intersected by Booberana Creek in the centre and by Kiddy-Geran Creek in the southern part.

The Lessees for a number of years have been cultivating an area along the eastern boundary of the block north of Booberana Creek and an area near the centre of the western boundary both north and south of Booberana Creek. The area assessed by Mr Heppel as arable land includes the majority of the cultivated land in the eastern part of the block and a belt of country on the western boundary of the block running from and including the area cultivated north of Booberana Creek through to the northern boundary.

Mr W.B. Adams who appeared on behalf of the Lessees agreed that the soils on the western area from the existing northern cultivated area through to the northern boundary were similar. He did not dispute anything contained in the report by Mr Heppel. He agreed that a rent for the grazing area of 34 cents  per hectare was reasonable. He agreed that the  arable areas were comparable with other lands cultivated in the locality and that it was common practice to use such areas     for     grain     growing.       He     said     the      economics     of     grain     growing has fluctuated and that the average yield was about 5.2 bags per acre. He did not question the sales evidence upon which Mr Heppel relied in making the assessment and he could not comment whether a value of $90.00 per hectare for the arable areas was reasonable.

Mr Heppel put a great deal of research and investigation into the exercise. Statistics he obtained showed that the returns from the subject property were equivalent to the average at the grain dump at Toobeah. His research revealed that cultivation of soils in the locality similar to those on the subject land has expanded. He analysed a number of sales and by a process of classification working from values paid for grazing blocks concluded that the best quality arable land in the district is worth $150 per hectare. He applied $90 per hectare to the subject arable area. His analysis of the sales was not questioned nor was there evidence that the sales were not reasonable sales upon which values could be founded. The sales evidence combined with the evidence of cultivation practices in the locality confirms the view that 645 hectares of the subject block could be reasonably valued as having a highest a best use for grain growing and that such land for the purpose of this exercise has a value of $90 per hectare. The method Mr Heppel has adopted in arriving at a rent for the area has its origin in cases going as far back as 1966 in this district (see 33 CLLR P. 183) and was confirmed by a Land Appeal Court in 1972 ("re: Determination of Rent - Grazing Selection GS 35/1635 Taroom (1972 39 CLLR P. 59)"until economic or other factors persuade the Crown to raise or lower that percentage as the case maybe."

The matter is one which is at present being inquired into by a Member of the Court however whatever comes out of the Inquiry will speak prospectively and accordingly is not relevant in the determination of the rent for this period.  The rent to be charged for GHPL 20/3664 during the second rental period of the lease is determined at $2,361 per annum.

Member of the Land Court