Dann v Minister for Lands [1993] QLC 53

LIB LAND COURT, BRISBANE. 30th April, 1993. Re: Determination of rent - first decennial rental period Grazing Homestead Perpetual Lease No. 16/10588 Lessees: Dou glas James DANN (HEARING AT DALBY) DECISION The Crown is seeking a rent of $799 or 36.1 cents per hectare per annum for the first decennial rental period of the term of the lease of Grazing Homestead Perpetual Lease No. 16/10588 which commenced on 1st January, 1990. The rent for the previous rental period of the lease was $235 or 10.6 cents per hectare per annum. The lessee has advised that his estimate of the rent that should be charged is 15 cents per hectare per annum. The increase in rent arises from the implementation by the Crown of recommendation by Mr C H Carter, Member of the Land Court following an Inquiry held in 1989. The recommendation was for an increase in cattle rental standards of 200%, which resulted in an increase in the rent for the hypothetical best cattle property in the Dalby District from $1.05 per beast per annum to $3.15 per beast per annum. The increased rental standards were challenged in the Land Court and Land Appeal Court but those appeals in respect of the cattle rentals were dismissed and the increased rental standards for cattle properties were confirmed. [1993] QLC 53 -- 1 of 5 -- 2 Grazing Homestead Perpetual Lease No. 16/10588 is in respect of the land described as Lot14 on Plan BWR.607, Parish of Wurama, containing an area of 2214.667 hectares. It is situated about 21 kilometres south west of Drillham and access is by means of 8 kilometres of bitumen road and 13 kilometres of formed earth and gravel road. The assessment of rent for the Crown was made by Mr Evan Zander, a registered valuer employed by the Department of Lands. Mr Zander's report shows that the property comprises about 1068.667 hectares (48%) of level to easy undulating mostly melonholey brigalow, belah, bottletree and wilga scrub and the balance of about 1146 hectares (52%) mainly rough ridgey and inferior ironbark, lancewood, wattle, bulloak and pine forest with some areas of box and sandalwood. Highest and best use of the property is shown as breeding, growing and fattening of beef cattle. Mr D.J. Dann appeared and gave evidence. He had only two concerns regarding the information contained in Mr Zander's report. First, he considered that he could run only about 230 head of steers on the property, compared with the estimate by Mr Zander of 316 head (1 beast to 7 hectares) on a mixed herd basis. Mr Dann did not deny that 316 head could be run, but he said that they would not put on any condition and no money would be made out of them. He explained that he did not use the property for breeding or fattening cattle. His practice is to buy steers at about 13 to 14 months of age and sell them as -- 2 of 5 -- 3 as forward stores at 18 to 20 months. He has found that this is the best use of the land without the problems of breeding or fattening. If he was to use the property for breeding and fattening, he said that he would have to carry fewer numbers. Mr Dann's second concern is that he thinks Mr Zander has overestimated the area of the brigalow, belah country at 48%. His own estimate is from 40% to 42%. He admitted that he had not measured the area in any formal way, but said that he had a good idea of areas from mustering and otherwise working the land. Mr Dann regarded the balance area of inferior lancewood, ironbark and wattle as of virtually no value. This country has no potential for further development. Mr Zander explained how he had used the factor system to arrive at his assessment of rent at $799 per annum. He said that his estimate of carrying capacity of one beast to 7 hectares was on a mixed herd basis. While Mr Dann may run no more than 240 head, Mr Zander said that on a district standard this was a conservative stocking rate. He made his comparisons by bringing everything to a common denominator and on the basis of what other people in the area were carrying on similar country, he considered his carrying capacity of 1 beast to 7 hectares was appropriate for comparative purposes. With regard to the areas of country, Mr Zander explained that he plotted the areas of different types of country on aerial photographs and measured them by planimeter. This was a relatively easy task, he said, as the different country types showed up clearly on the photographs. -- 3 of 5 -- 4 Mr Zander did not regard the inferior forest country as being completely useless, as he said that it had areas of box and sandalwood. While it could be described as inferior forest country, it was by no means the worst in the district. Mr Dann rejected the suggestion that he was stocking the property conservatively. He said that he is stocking it realistically, in order to avoid land degradation. He added that there was none on his property. Mr Zander agreed that there was no degradation or erosion and that there was plenty of grass. I have come to the conclusion that it is probable that Mr Dann does stock his property more conservatively than other landowners in the area. While this is much to his credit, it makes Mr lander's task more difficult in trying to make comparisons with other properties. In this regard I think that he has adopted the correct approach in considering all carrying capacities on a district standard for comparative purposes. As far as the second point of contention is concerned, I think that Mr Zander is more likely to be correct in measuring the areas of the different country types, as he used aerial photographs and a planimeter. While Mr Dann would no doubt have a good idea of areas from working the land, it is difficult to be precise about areas without resorting to the type of measuring devices used by Mr Zander. Having made these findings, I agree with the approach adopted by Mr Zander in the use of the factor system. In comparison with the hypothetical best -- 4 of 5 -- 5 for the Dalby district of 315 cents per beast at a carrying capacity of 1 beast to 3 hectares, Mr Zander has adopted a rate of 279 cents per beast for the subject land. His total of allowance factors amounts to 10%, leaving a net rate of 251.1 cents per beast, or at a carrying capacity of 1 beast to 7 hectares, 35.9 cents per hectare. However, for relativity purposes he adjusts this to 36.1 cents per hectare, which for 2214.667 hectares equals $799 per annum. Accordingly, the rent for Grazing Homestead Perpetual Lease No. 16/10588 for the first decennial rental period of the lease is determined at the sum of $799 per annum. J.J. TRICKETT. MEMBER OF THE LAND COURT. -- 5 of 5 --