Bertola & Anor v The Valuer-General [1991] QLC 147

Re: Determination of Unimproved Value - Shire of Mareeba AV91-37 L. & G. Bertola v. The Valuer-General DECISION LAND COURT, BRISBANE. 25th October, 1991 This appeal is against the determination by the Valuer-General of an unimproved value of $103,000 ($2,250/ha) for Lot 478 on Plan NR 6764;APF 2815F, Parish of Tinaroo containing an area of 45.91 hectares. This land fronts the bitumen sealed Kennedy Highway and is about 11 kms south of Mareeba. The relevant date for the valuation is 31st March, 1990. The appellants contend within the notice of appeal for an unimproved value of $60,000. Lorenzo Bertola informed the Court that the appellants purchased this land in 1983 for $218,000. It is land additional to other property they own in the area and it was brought for peanut and maize production. At that time peanut prices were $800 per tonne and maize $145 per tonne. In 1989 peanuts fetched $500 per tonne and maize $102 per tonne. In 1990 peanuts realised $90 per tonne. Mr Bertola told us that in 1987 the land was valued by the Valuer-General at $10,000 and he cannot see that a valuation of $103,000 for it in 1990 is realistic given the falling commodity prices and increased farming costs. He feels there has [1991] QLC 147 -- 1 of 3 -- - Page 2 - either been a mistake or perhaps even victimisation, but I hasten to say there is no evidence of victimisation so I am left to analyse the evidence to see if there is a mistake. It is registered departmental valuer Peter John Haydon's valuation which falls for examination. He describes the nature of the land as comprising about 33 hectares of red and brown sandy clay loam volcanic soils with some light stone, about 7 hectares in the north east corner of the block being similar soil but with more stone problems. About 5.91 hectares in the south western southern end of the block has heavy stone problems and a lighter sandy soil. The northern half of the block is near level while the land rises in a gentle to easy slope to the southern end. The land has been contoured for soil erosion measures. It abuts the Irrigation and Water Supply Commission's channel on its southern boundary and has an allocation of 164 megalitres from the channel. The water is gravity fed. Mr Haydon says there are no sales of red volcanic soil farms within the annual valuation period. He submitted the analyses of two sales of irrigable arable properties which he says show a rise of 10% in horticultural/agricultural land values over the 1989 relevant date valuations in the area. This is also the rate of increase applied over the 1989 relevant date valuation of the subject land. I note the sales referred to by Mr Haydon took place in 1989. Now it is well established that the best basis for valuing land in appeals of this nature is analysed sales evidence which took place at or about the date of valuation, and Mr Haydon provided the only evidence on this nature. This was unchallenged by Mr Bertola. It is well recognised that farming commodity prices such as for peanuts and maize have fallen over years but this should be -- 2 of 3 -- - Page 3 - reflected in the capital sum which is being paid for fand by experienced farmers at or about the relevant date. There is no evidence that the purchasers of the sale properties used by Mr Haydon are inexperienced or imprudent. Since Mr Bertola did not refer to any recent sales it follows that there is no basis for his valuation of $60,000. In these circumstances there is no evidence that there has been a mistake made by Mr Haydon. It follows that the appeal be dismissed and that unimproved value of Lot 478 on Plan NR 6764;APF 2815F, Parish of Tinaroo as determined by the Valuer-General in the sum of $103,000 be affirmed. (C.H. Carter) Member of Land Court. -- 3 of 3 --