It could become easier for out-of-province buyers to get a piece of Saskatchewan.
The provincial government is reviewing the law that prohibits non-residents from owning more than 320 acres of farmland.
Depending on the outcome of consultations with Saskatchewan farm groups and other interested parties, legislation to lift the restrictions could be introduced next spring.
Relatively low land prices in the province have sparked interest from outside investors in the last couple of years, particularly from Alberta.
Proponents of a change say it would open up the province’s struggling farm economy to new investment, boost land prices and put Saskatchewan on the same footing as its neighboring provinces, which have no limit on other Canadians owning land.
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Critics say the increased competition for land would make it harder for farm families to hold on to their land and for beginning farmers to get into the business.
Agriculture minister Clay Serby said that while no decisions have yet been made, the arguments for change seem to have merit.
“My view is there would be benefits in having the same regulations in all three (prairie) provinces.”
Serby said while the Farm Land Security Act limits non-residents to owning 320 acres, the board that administers the act has routinely granted exemptions in areas that border other provinces and to people who present credible residency plans. Last year, there were 224 such exemptions, and it hasn’t created problems.
Serby also said the current limits may be at odds with the government’s goal of encouraging new agricultural ventures such as intensive livestock and horticultural operations.
“These kinds of things can require a large tract of property,” he said. “From that perspective, this would be very useful.”
A consultant hired by the government is soliciting views on whether ownership should be restricted on the basis of residency of the buyer, whether it’s an individual or a corporation, whether it’s an agricultural or non-agricultural corporation, and whether it’s from outside Canada.
“It’s a broad brush approach that we’re taking in asking the question, to see what kind of responses we get,” said Serby, although he added there is a clear difference between Canadian and foreign ownership.
The Western Canadian Wheat Growers Association wants no ownership limits on Canadians from other provinces, to foster the free flow of investment capital throughout the prairie region.
“We see that as being good for farmers wherever they are around the Prairies, and we’d like to see any barriers to investment opportunities brought down,” said association vice-president Greg Douglas.
The Canadian Federation of Independent Business says a survey of 700 agri-businesses in the provinces showed 74 percent favored removing the existing restrictions.
“This would open the door to the kinds of investments and value-added opportunities that will help ensure the long-term viability of the ag industry,” said spokesperson Rob Meijer.
But National Farmers Union executive secretary Darrin Qualman says residency rules are needed to keep speculators out of the market.
“Clearly we need laws that keep land in the hands of the local families that are going to farm it,” he said.
While land values might get a boost, Qualman said most producers are more interested in protecting the family farm than making a few more dollars on their land.
“The vast majority of farmers who have farmed all their life and now are selling wouldn’t want to make an extra three or five percent if it meant fostering the foreign and possibly corporate takeover of Saskatchewan farmland.”
