Michael Hall, the brother of Brett Hall who disappeared from his Pitangi property near Whanganui in 2011, said his brother had been threatened with gun violence.
Hall took the stand in the High Court in Palmerston North today to testify against David Owen Lyttle, who has pleaded not guilty to murdering Brett Hall.
The trial is before a jury and is expected to last 10 weeks.
This morning, when asked by Crown prosecutor Michele Wilkinson-Smith whether he was aware of Brett's using and dealing methamphetamine, Hall said he had seen his brother "snorting" it.
"In the mid to late 90's, he was at home. He said three people smashed their way into his house and held a rifle at his head asking for drugs and money," Hall said.
On another occasion, Hall alleged another drug dealer had "beef" with his brother after Brett began using two girls that he had sacked to deal his own supply of methamphetamine.
"He fired a shot at Brett and Brett showed me the bullet hole about four inches above the couch."
Brett was paroled from prison in 2009 after serving a seven and a half year sentence for drug dealing and unlawfully possessing a pistol.
The first time Hall visited his brother at the Pitangi track property was 2-3 months before Brett disappeared on May 27, 2011.
On that occasion, Hall drove his four-wheel-drive Range Rover up the track that could become "a bit boggy" to the campsite Brett called home.
"He seemed his happy self, good as gold," Hall said.
"I saw him snorting methamphetamine, that was in the caravan, maybe early/mid morning.
"I [asked] him, why's he carrying on with that bloody rubbish?"
Hall said Brett replied he used on occasion, but he wasn't as bad as he used to be.
Hall said Brett was consuming meth heavily before he arrested for drug dealing.
"Beforehand he used to mumble a lot and what not, but after prison back in Pitangi he was happy, alert and enjoying life."
The second time Hall visited his brother at Pitangi was a few weeks before Brett disappeared and this time he took his sons to the property with him.
"He was good as gold, the next morning when I got out of bed I saw him snorting meth in the caravan again," Hall said.
Hall said that this time, his brother Brett told him it was the last lot he had and once it was gone, he woud be done with using methamphetamine.
The last time Hall saw his brother was when Brett visited him to collect a trailer that Michael was repairing for him.
Hall recalled his brother talking about the low quality of the trailer and that he remained angry with the fact David Lyttle hadn't paid him back for funds advanced to him.
Court has adjourned with defence councel for David Owen Lyttle, Christopher Stevenson questioning Michael Hall.