Broader farmland ownership review wanted
REGINA — Saskatchewan’s general farm organization says there are systemic challenges to farmland ownership the the provincial government should address as it reviews the current legislation.
There is suspicion that indirect foreign ownership, through corporate structures and financial instruments, is distorting the market dynamics and further limiting access.
The Agricultural Producers Association of Saskatchewan (APAS) has called for a broader policy review, beyond the Farm Security Act, to resolve these issues.
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The letter was a summary of the organization’s submission to the advisory committee currently gathering feedback on the existing legislation, said president Bill Prybylski.
Why it Matters: There are concerns that young or new entrants to farming in Saskatchewan can’t buy land because investors have driven up costs. There are also longstanding concerns that foreign investors are somehow bypassing provincial rules to obtain ownership.
Prybylski said APAS has no evidence that foreign ownership has occurred and did not intend for its letter to become a political issue. The letter has been raised in the legislative assmebly.
“Every meeting we’re at with our reps, or with our RM councils, there’s always stories coming up of foreign ownership of land. In some cases, there’s claims that it’s a serious problem in some areas,” he said in an interview.
“Our hope is that with some changes to the Farm Security Act, or the way that it’s enforced, the penalties that go along with any contraventions of the act would be strong enough to deter any further foreign ownership.”
He said the provincial auditor’s report last year didn’t find evidence of foreign ownership but found examples where there could have been more investigation.
The uncertainty and confusion must be clarified, Prybylski said.
APAS said while legislative reforms are required, a more integrated policy framework addressing underlying factors is also needed.
For example, policies could prioritize intergenerational farm transfers and help alleviate the financial burden involved.
APAS suggested the economic and social impact of speculative investment, taxation policies, and inflated land valuations need more scrutiny.
“Taxation policies could incentivize agricultural production and discourage holding farmland for speculative purposes,” the letter said.
“Such measures can ensure land remains productive and benefits agriculture producers.”
More specifically, APAS said ownership verification should be efficient and streamlined to ensure legitimate transactions proceed quickly. Transparency for all involved is key.
Foreign ownership should remain restricted, and a thorough examination of permanent resident farmland ownership and leasing done to establish the baseline and help inform future policy.
Domestic financing, rather than foreign-controlled financing mechanisms, should be used.
APAS also warned that while non-profit and charitable organizations could legitimately buy land, their eligibility should be set with clear boundaries.
“Policies should ensure such land acquisitions support agricultural, conservation or rural development purposes while mitigating risks tied to foreign or speculative interests using charities as loopholes,” it said.
Enforcement measures and regulations should be stronger, APAS said. It recommended a lease registration system, in which non-Saskatchewan resident lessees would submit lease agreements to the Farm Land Security Board as a centralized tracking system, stronger penalties and enforcement and an automated database to track changes in corporate bodies that hold farmland.
It recommended periodic audits of ownership records and periodic compliance declarations for high-risk corporations.
“A narrow focus on the Saskatchewan Farm Security Act limits the province’s ability to resolve these systemic issues. A broader, well-rounded policy review is imperative,” APAS said.
Source: www.producer.com