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Rural rents resolved at last

The State Government has finally put an end to the contentious issue of rural leasehold rents, capping increases to a maximum of 20pc a year.

This is a far cry better than facing rental increases in line with huge spikes in property valuations of the last couple of years.

In some regions those valuations have increased by 2500pc.

If rents had been increased by the same amount, it would have broken the back of many rural leaseholders.

In credit to AgForce, they have succeeded in managing the issue by negotiating a rental freeze for the past two years until the Government came to accept a more acceptable method of calculating rents.

And while a 20pc increase is better than 2500pc, it is still a significant cost impost facing farmers.

The State Opposition argues - and its a point that was pushed by AgForce during the long and tenuous negotiation with the Government - that rentals should be capped in line with inflation.

After all, the Government is receiving a higher income without providing an extra service.

What do you think?

Posted By: Michael Thomson on 25/05/2007 10:16:23 AM | Comments (1)

Comments

Date: Newest first | Oldest first

Great result from AgForce.

What governments don't seem to understand is that cattle producers are still getting an equivalent price for their cattle as they were receiving in 1973 - but the value of the dollar is very different.

Rural people are price takers - do governments understand what this means?

We cannot pass on costs as we don't set the price of our product; we must accept the going price, and the constant imposition of costs by government are making producers unviable.

It puts pressure on land as the only way to produce enough income is to increase our stocking which often exceeds the carrying capacity of the land.

We need governments assistance to achieve land protection, not more unnecessary costs such as unreasonable increases in rentals because the government wants the money.

The Qld is awash with money and they would be far better off assisting producers to achieve land care than legislating them out of existence.

Or is that what they want?

Posted by Concerned Northerner on 28/05/2007 5:02:55 PM

Michael Thomson is the Editor of FarmOnline. He has previously worked as the Canberra Parliamentary Press Gallery correspondent for the Rural Press group of agricultural newspapers, and as a senior reporter with Queensland Country Life.