Saskatchewan has sold only a tenth of the 1.6 million acres of crown lease land made available for sale one year ago.
Agriculture minister Bob Bjornerud said the 113,000 acres sold is a far cry from where the government thought it would be by now.
“Producers were saying they couldn’t get financing or they weren’t in a position to buy,” he said.
“I think to a degree we caught everyone off-guard (by offering land for sale).”
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The late harvest and financial difficulties in the cattle sector are other factors.
Bjornerud has decided to extend the 10 percent purchase price discount, which was to end Dec. 31, for another year as incentive for potential buyers who might now be in a better financial position.
As well, the discount is now effective based on the date of the application rather than the date of sale. That means buyers will receive the greater discount if the sale is concluded in a subsequent calendar year.
The discount drops to eight percent in 2011 and then six, four and two percent by the final program year of 2014.
Not all agricultural crown land is eligible for sale.
Exceptions include land that has heritage value, is environmentally sensitive or protected under the Wildlife Habitat Protection Act or contains sand and gravel, harvestable timber or active oil and gas exploration.
