New valuations mean savings for farmers

Press, 18 December 1985, Page 35

New valuations mean savings for farmers

PA Invercargill Fanners in the Te Anau Basin financed by the Lands and Survey Department will save thousands of dollars this year through a special clause in their land settlement agreements. About 15 people in the area are among an estimated 300 New Zealand farmers eligible for a revaluation of their properties under an amendment to the Land Act, 1908. While few have applied yet, many are expected to before the end of the financial year. The fanners, who have been hit hard by a big drop in land prices and the removal of the S.M.P. incentive scheme, will be able to apply for a revaluation of the rental value of their land, or a revaluation of those improvements which belonged to the Crown at the time of settlement, if they have been settled between three and six years.

The Assistant Commissioner of Crown Lands in Southland, Mr Tony McGowan, said that Te Anau settlement farmers were aware of the revaluation clause, but as yet no applications had been received locally. The department’s chief

field officer, Mr Tom McKenzie, said from Wellington that there had been very few applicants anywhere in New Zealand. However, he believed about 300 farmers would be eligible. Because most farmers who qualified for the revaluation were only now within the three to six-year provision, they were still assessing their situation, he said.

They were undecided if land prices had “bottomed out” yet. They only had one chance to apply for land revaluation and, therefore, had to be sure the time was right. It was difficult to get a true valuation when there had been so few sales that were considered “genuine and not forced,” Mr McKenzie said.

However, he agreed that there was a possibility of a 30 per cent price reduction in the affected areas.