Saskatchewan’s Farm Land Security Board changes procedures
REGINA — Saskatchewan’s Farm Land Security Board has changed some of its processes after a report from the provincial auditor last year raised concerns about foreign ownership.
Agriculture minister Daryl Harrison said during estimates debate for his ministry April 2 the government “fully accepts” the auditor’s recommendations.
Auditor Tara Clemett recommended stronger procedures to ensure provincial ownership laws are being followed.
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“I don’t think they completely know,” she said of foreign ownership at the time.
“We identified transactions out there that they should be looking at.”
The auditor looked at 18 transactions considered to be higher risk and found the board hadn’t asked for statutory declarations in half of them.
However, the examination also found all higher-risk transactions between Aug. 1, 2023, and July 24, 2024, were compliant. These included five individuals with foreign addresses who held more than 10 acres, 18 sales worth more than $10 million and 16 buyers with more than 60 land title changes.
Opposition leader and agriculture critic Carla Beck asked about progress on the recommendations during estimates, specifically whether the government had changed its process to review transactions for compliance before they occurred rather than after.
“I understand that the board has adjusted how it documents conflicts of interest, provided exemption applicants a confirmation of the date that their application will be heard by the board, directed a 30-day maximum time frame for transaction review and staff are requesting statutory declarations from all out-of-province corporations when purchasing land,” Harrison said.
An email from the ministry said the board is also changing notice procedures to individuals and corporations of requirements to sell land so owners are aware of the legislation.
Harrison said the board would in the next few months implement a new statutory declaration asking for additional information, particularly about financing, modify its annual report and website with more information about enforcement activities, review registered lease interests and “refine processes and focus on escalation procedures to meet the board’s needs.”
More information is expected when the board’s annual report is tabled in July.
The board previously asked for changes so that purchases would have to comply with the legislation before title changes are registered.
Harrison said there are pros and cons to reviewing transactions before or after compliance is confirmed. He said the government had to consider the most effective way to register land and would continue to explore options.
The Land Titles Act, 2000, however, is under the justice ministry’s jurisdiction and changes would have to be made through that ministry.
Saskatchewan’s law limits non-Canadian people or corporations and publicly traded companies to 10 acres, but the board has the ability to grant exemptions. In the previous five years before the auditor’s report, the board had approved 140 exemptions. Most of those were for renewable energy companies but also include mining, agricultural businesses and rail lines.
The auditor took issue with the fact the board reviewed transactions after they happened and didn’t have procedures to follow when documents were not provided.
“We found the board requested eight statutory declarations since 2020 where it did not receive responses; the board remains unable to conclude whether these eight purchasers complied with the act,” the report said.
Five orders to sell were issued in cases where the board found the land was not properly obtained.
The auditor recommended 10 ways processes could be improved, including asking for legal documents that prove citizenship and funding sources, or even permanent resident cards or passports.
Foreign leasing of farmland was also a concern. The auditor looked at 30 agricultural crown leases and did not find any foreign lessees but recommended a central list be kept.
Rumours of foreign-owned farmland continue despite the board’s oversight and auditor’s findings. Harrison dismissed them as coffee shop talk.
He said last fall he wanted everyone to have confidence in the board.
The auditor will follow up with an audit in the next couple of years.
Contact karen.briere@producer.com
Source: www.producer.com