REGINA – The Saskatchewan government is reviewing the rules surround farm ownership in the province. Agriculture Minister Lyle Stewart made the announcement on Monday.
“Saskatchewan farmland is a strategic asset that should be owned by Canadians for the benefits of Canadians,” Steward said in a release.
“Our goal is not to limit investment, but to ensure the long-term success of Saskatchewan’s agriculture industry and economy.”
While ownership rules are defined in The Saskatchewan Farm Security Act, it does not define institutional investors like pension plans, administrators of pension fund assets and trusts.
Stewart said the intention of the Act was to limit ownership of Saskatchewan farmland to Canadian residents and 100 per cent Canadian-owned corporations.
“Recently, the issue has arisen of whether institutional investors like pension plans should be able to purchase Saskatchewan farmland,” said Stewart.
“There are differing views on this matter, so we want to hear from producers and other interested Saskatchewan residents.”
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While the review is underway, regulations are being put into place prohibiting certain organizations, like pension plans, from purchasing Saskatchewan farmland. There will still be a mechanism in place to allow exemptions for economic development initiatives such as those that provide for oil and gas exploration.
Other regulations being put into place during the review include:
- Further defining pension plans, administrators of pension fund assets and trusts as not Canadian-owned entities;
- A family trust with fewer than 10 Canadian individuals listed as beneficiaries will still be able to purchase farmland;
- That having an interest in farmland is defined to include any type of interest or agreement, direct or indirect that results in any of the benefits (i.e. capital appreciation), either directly or indirectly, of owning of the land;
- When financed, farmland purchases must be through a financial institution registered to do business in Canada, or a Canadian resident.
Details of the consultation process, including the option to make submissions online, are expected to be announced later this spring.
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