Between May and August, the government of Saskatchewan consulted with Saskatchewan farmers and others about the issue of farm ownership – who should be allowed to own farmland in Saskatchewan? And now, the results are in.
According to the provincial government’s website, these are the three rules surrounding farmland ownership in the province:
-Non-Canadians and non-100-per-cent Canadian owned entities can own no more than 10 acres of farmland in Saskatchewan.
-The Saskatchewan Farm Land Security Board can grant exemptions.
-Pension plans and investment trusts cannot own farmland in Saskatchewan.
The government sent out surveys to see if any changes to these rules were needed. Almost 95 per cent of respondents were Saskatchewan residents and of these, 62 per cent were farmers. The consultations were meant to answer the following questions:
-Who should be eligible to purchase and own farmland in Saskatchewan?
-Are new rules needed to govern farmland transactions and financing for land purchases?
-What is the appropriate level of government monitoring and enforcement to ensure land transactions comply with the rules?
In addition to the surveys, the ministry of agriculture invited 41 organizations representing farmers, ranchers, investors, businesses, lawyers, aboriginal groups, and more to discuss farm ownership rules.
“It was time to do something,” said agriculture minister Lyle Stewart. “There was enough interest around the province, particularly in rural Saskatchewan, that we needed to consult with people and find out what they thought about this.”
Several themes emerged from the results.
The first is that there is a strong connection between land history and identity. One dominant thought that came up is that the land has been farmed by Saskatchewan residents for generations and was meant to be a legacy for the owners’ children.
The second is that there is a connection between ownership and stewardship of the land. This means owners feel there should be an emphasis on taking care of the land in a sustainable manner, rather than chasing profits.
The third is the importance of personal relationships and community. Business transactions for farmers are based on personal relationships and “Investors are not seen to hold the same cultural values and relationships as farmers,” according to the report.
Fourth, “Speculating investors are seen to artificially inflate land prices to the point where some farmers are no longer able to compete when land is available for sale,” the report said.
Lastly, the Saskatchewan residents who responded generally support the current rules in place for farm ownership.
“I’d say there’s a pretty broad consensus across the province that these are the things they want, and that’s what I’d hoped for,” Stewart said.
The majority of respondents do not support foreign investors providing financing to Canadian residents to purchase farmland or allowing investors such as Canadian pension funds or Canadian investment trusts to purchase farmland in Saskatchewan (69 per cent and 75 per cent, respectively). Eighty-five per cent support the provincial government taking a more active role in ensuring compliance on farmland transactions, which surprised Stewart.
“I wasn’t aware that people knew how difficult it was for (the Farm Land Security Board),” he said.
He hopes to soon introduce legislation that reflects the results of the farm ownership consultations.
“Everything I’ve heard has been ‘Glad you did it, thanks for doing it,’ things of that nature,” he said. “No negative reactions.”
