Productivity factored into land values

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Published: July 4, 2002

MOOSE JAW, Sask. – The next time Saskatchewan arable land is

re-assessed, it will be rated more on productivity and less on market

value.

That’s what rural governments wanted.

But with that good news comes the bad for some landowners.

The chair of the Saskatchewan Assessment Management Agency said the

shifts noticed after the 1997 revaluation will essentially reverse in

2005. That means some people will see the assessed value of their

property jump quite a bit, while others will see a decline.

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Bill Reader said people must remember that assessment does not equal

tax. The provincial government is responsible for property taxation,

based on the assessments provided by SAMA.

“The two departments responsible, as we speak, are working on what they

need to do to mitigate assessment shifts,” he told a district meeting

of the Saskatchewan Association of Rural Municipalities.

Those tax tools could include using percentages of assessed value,

rather than 100 percent.

SAMA expects 114 of the province’s 297 rural municipalities will see an

assessment change of plus or minus 10 percent.

About 108 RMs will see their assessments drop. Seventy-five will see

increases, 35 of them of 20 percent or more.

“The overall assessment will stay the same,” said Irwin Blank, managing

director of technical standards and policy at SAMA. “There’s going to

be significant shifts.”

Blank said the changes mean all land with similar productivity will

have the same assessed value across the province.

In 1997, the local market index was introduced to give more weight to

local land sales in the assessment process. But the LMI caused concern

among farmers and farm organizations, who argued that it caused

inequities.

Blank said a return to using a productivity rating, which was in place

from 1965 to 1997, will solve the problem of inflated assessments in

areas of oil and gas production or those near cities.

He said he expects land along the east side, particularly in the east

central region, will see the highest increases under the 2005 system.

For example, the RM of Wallace, near Yorkton, could see assessments

jump 38 percent.

On a crop district basis, 5A, which includes Yorkton and Melville, will

see a 22 percent jump and 5B, including Wynyard and Canora, will see a

23 percent increase.

On the other side of the province, 7A and 7B, including Kindersley,

Wilkie and Unity, could see a 19 percent drop.

The RM of Moose Jaw is projected to experience a 31 percent decline.

The new assessment model will also include a provincial market index,

which converts the final productivity rating into a dollar value per

acre.

Under the 1965 system, the PMI was $1 per rating point. That will be

updated to reflect 2002 provincial averages under an as yet

undetermined base date.

Reader said about 20,000 sales would be included in that calculation.

He also told the delegates he is surprised how many people don’t

understand assessment and how it works.

“If you own real property you pay tax,” he said. “It has nothing to do

with whether you have a grader going by your house or kids going to

school … and that’s our system.

“It would take a cabinet with king-size balls to even think about

changing that system.”

Reader asked for the councillors’ help to explain assessment to their

ratepayers.

Feds vow more minor use funds

By Barry Wilson

Ottawa bureau

news

The federal government is promising to spend $54.5 million during the

next six years to help make more minor use pesticides available to

Canadian farmers.

The fruit and vegetable industry applauds the promise.

“Without a doubt, this is an important first step to let Canadian

farmers have the same tools as their American competitors,” Hamilton,

Ont., vegetable grower Ken Forth said.

The president of the Canadian Horticultural Council said the industry

will have to work with the government to make sure the money is put to

the best use.

He said a key will be to generate data needed to have minor use

chemical products submitted to the Pest Management Regulatory Agency

for approval.

Currently, many manufacturers consider Canada too small a market to

bother applying for registration of chemicals for use on lesser grown

crops. It means American farmers have access to more chemicals than

Canadian farmers.

“We are not looking to loosen standards,” said Forth. “Many of the

products we are looking for are actually safer. We just want the system

to work.”

The federal announcement was the first instalment of a promise by

Ottawa to spend $264.5 million on environmental projects as part of the

new long-term agricultural policy framework that will send $5.2 billion

out of Ottawa over six years.

On June 24, agriculture minister Lyle Vanclief announced the minor use

pesticide money, as well as $100 million over four years, to help

farmers across Canada develop farm environmental plans.

Details on how the money will be distributed are not yet available.

In the announcement, Vanclief said that farmers who identify

environmental weak spots in their operation and then move to strengthen

them are helping both their industry and their potential for profit.

“By addressing growing environmental concerns, we not only provide

benefits for the health of Canada’s air, soil and biodiversity, we also

give our domestic and international customers proof that Canada is the

leader in environmentally responsible food production,” the minister

said in the announcement.

Unlike most of the new policy funding arrangement, provinces are not

being asked to co-fund the environmental spending.

“That is direct money that helps mitigate problems our farmers have,”

Vanclief told reporters.

The announcement is a supplement to an earlier federal announcement

that in parallel with proposed new pesticide regulation legislation,

Agriculture Canada and Health Canada are making more money available to

the PMRA to speed up reviews of minor use product applications.

A minor use adviser also is being appointed within the PMRA to help

speed up the process and to deal with farmer complaints about delays.

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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