The Crown is to appeal against a ruling that stopped a higher rent being charged for a high country station.
The Land Valuation Tribunal found in favour of Wanaka farmer Jonathan Wallis earlier this year, over the valuation of his Minaret Station.
Mr Wallis had challenged the Government's right to charge more for land based on the value derived from a property's location or view.
Agriculture Minister David Carter said the Solicitor General has advised that the judgement leaves an unclear definition of capital value, which presents complexities around valuing pastoral leases in the future.
However, the minister said, the Government supports the tribunal decision and is committed to implementing pastoral lease rents based on the earnings of a property
"This is not about amenity values, Mr Carter said in a statement. "This Government has no intention of revisiting Labour's policy of including amenity values in the rent setting process."
Jonathan Wallis says the prospect of more litigation is disappointing, as the costs will be substantial to both sides.