Saskatchewan agriculture critic Yens Pederson says he still hears concerns that foreign money is used to buy farmland in the province.
He said the government should have policies in place to enforce compliance with its legislation.
He raised his concerns during committee examination of the agriculture ministry’s spending estimates for the 2020-21 fiscal year, asking officials if the Farm Land Security Board has enough power and money to make sure the rules are being followed.
“We’ve heard the board doesn’t have the resources to investigate and enforce what is the law on that,” he said in a later interview.
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Currently, the farmland ownership provisions allow Canadian citizens and permanent residents to buy land. Non-residents may buy up to 10 acres, or more with an exemption.
Corporations or organizations that are 100 percent Canadian owned and not publicly traded can also hold an interest in farmland.
Assistant deputy minister Paul Johnson told the committee that there is a statutory declaration that potential buyers must sign to help staff determine if they are eligible buyers.
“So you basically take buyers at their word?” Pedersen asked.
Johnson said if staff believe something in that statutory declaration is false, it can investigate.
Pedersen said his concern is that hasn’t been a focus.
“We keep hearing concerns raised from various parts of the province and they don’t seem to be doing anything about it,” he said.
The opposition doesn’t have the resources to dig into transactions, but he said they will continue to monitor sales.
“Historically, Saskatchewan people felt and I think still feel that Saskatchewan farmland is a resource for Saskatchewan farmers,” he said. “It shouldn’t be an investment for rich people elsewhere. We want to make sure that Saskatchewan farmers aren’t competing against foreign money when it comes to basically making a living.”
The rules around ownership were last changed in 2015 amid concerns about purchases by foreign buyers, particularly from China, and the Canada Pension Plan Investment Board’s purchase of 115,000 acres.
However, rumours have persisted that foreign money is being funneled to Canadian citizens to buy land.
Pedersen said the legislation is broad and aside from prohibiting someone from being the owner it “also says you can’t have some kind of behind the scenes deal where benefits of ownership accrue to you.”
He said he isn’t sure how buyers and lawyers might be circumventing the law, but changing the questions on the declaration might help.
“Where is the money coming from? Are there people with beneficial interests in this land who are not showing up as owners of the land?” he said.
The declaration does ask if the funds are personal, privately borrowed or from a Canadian financial institution. The fine for contravening the act is up to $10,000.
Pedersen added that there is a two-year limitation period on prosecuting offences under the act. That might not be enough time if the board isn’t aware of a problem until close to the end of that period.
According to the board’s website, it has granted exemptions to various individuals and companies in the last year. Some include requirements for people to become permanent residents or citizens by certain dates.