The Saskatchewan government has announced an incentive program to sell agricultural Crown land. Agriculture Minister Lyle Stewart said one reason behind the new program is to get the government out of owning farmland in the province.
“During our recent review of farmland ownership rules, a large majority of producers told us they opposed large institutions owning farmland,” said Stewart.
“The provincial government is probably the largest institutional owner of farmland and owning farmland is not a business the government needs to be in.”
READ MORE: Saskatchewan government moves to restrict farmland ownership
Under the program, current lease-holders would be offered incentives to purchase the land. From now until March 31, 2016, they would receive a 15 per cent discount on the purchase, which drops to 10 per cent on April 1, 2016 and then to five per cent on Jan. 1, 2017.
The first priority for the government would be to sell cultivated land.
“Our first priority for sale is cultivated lands as they are easily identifiable and the least likely to have any ecological or environmental value because they are already broken,” said Stewart.
“This program allows Saskatchewan farmers and ranchers, individuals who have managed the land for the better part of a century, to purchase this land and realize the benefits of ownership.”
The government estimates roughly 600,000 acres of land will be sold under the program.
Land designated as having a high ecological value is not for sale, while there would be no discounts for land classified as having moderate ecological value.
“As a government, our priority is administering land that has a higher public good from an ecological, environmental, heritage or economic perspective,” said Stewart.
“The government still owns a lot of land that does not serve these purposes. We want to sell eligible agriculture crown land to lessees.”
Also excluded are sales associated with public tenders and treaty land entitlements.
If a lessee opts not to buy the land, they can continue to lease however rental rates on cultivated land and previously cultivated land will go up by approximately 15 per cent over the formula rate for the 2016 cropping season. It will then go up to 30 per cent over the formula rate for the 2017 cropping season.
The new incentive program is now in effect.
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