That Agriculture Minister Lyle Stewart and his Saskatchewan Party government have done an about-face on the question of farmland ownership is likely a good thing.
But it’s also rather puzzling.
To the surprise of many, Stewart announced early last week his government’s plans to review of the Saskatchewan Farm Security Act, beginning with public consultation this summer.
Now, one might assume the act is already strict enough given that it currently, restricts non-Canadians or non-Canadian-owned corporations from possessing more than 10 acres of farmland.
However, efforts to circumvent theaClearly, one issue is the sky-rocketing price of Saskatchewan farmland.
By coincidence, the day of Stewart’s announcement came other news from Farm Credit Canada that land values increased, on average, by 18.7 per cent in 2014. This represented the third straight year Saskatchewan land saw a large spike, with average farmland value increasing 28.5 per cent in 2013 and 19.7 per cent in 2012.
By comparison, farmland values, nationwide only increased 14.3 per cent in 2014 and 22.1 per cent in 2013.
Moreover, the return of lower prices is causing tighter profit margins — something that’s already impacting the farmland rental market — one can only suspect that sky-rocketing farmland prices will slowdown.
Other sees more nefarious politics in the decision.
Progressive Conservative leader Rick Swenson said the decision was only made after mounting anger in rural Saskatchewan over farmers and ranchers having to compete with their own Canada Pension Plan funds to buy farmland.
Swenson has vehemently opposed what he calls a loophole in the current act that allowed the Canada Pension Plan Investment Board (CPPIB) to buy Assiniboia Farmland. And the PC leader said CPPIB should be forced to sell the land.
“Not only do I want them out, I want divestiture (of farmland) in a three-year period,” he said.
New Democrat agriculture critic Cathy Sproule also asked in the chamber last week why Assiniboia Farmland wasn’t the focus of the government action. Sproule noted that the principals in the company included one-time high-ranking Sask. Party officials including a former member of the Premier Brad Wall’s transition team and the former chief of staff of the Sask. Party Opposition caucus.
Again, it’s all ready puzzling.
That said, when the CPPIB bought 115,000 acres in Saskatchewan in late 2013, the acquisition was approved by the Farm Land Security Board and Justice ministry officials. Moreover, government officials also said the large-scale purchases were privately scrutinized and reviewed and no problems were found.
However, no details of this private investigation — including its findings, cost to taxpayers or even who performed it — have been released.
As suggested, there is a lot in this move by Stewart and his government that’s down-right puzzling.
Murray Mandryk has been covering provincial politics for over 22 years.
