REGINA — Saskatchewan has changed how it calculates crown land grazing lease rates, effective this year.
The government said the revisions will benefit cattle producers by creating more predictability and stability. It had been consulting with producer organizations on how the formula could be improved.
Producers had been asking for changes for some time to help mitigate large swings in rates.
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“We have listened to feedback from producers and, as a result, these changes will contribute to the further growth of the province’s livestock sector,” agriculture minister Daryl Harrison said in a news release.
“Additionally, this new formula provides a fair and transparent pricing structure for producers and a fair return for a public asset back to Saskatchewan taxpayers.”
The formula will now use price averaging from cattle sales between Oct. 1 and Nov. 30 for the five prior years instead of using the previous year only.
A 20 per cent cap on annual rental rate increases has also been introduced.
“The 20 per cent ceiling on fee increases will help producers and community pastures better plan for any possible changes to the rates,” said Saskatchewan Cattle Association past-chair Keith Day.
The agriculture ministry said the 2025 grazing rate will be $9.82 per animal unit month (AUM), which is a 20 per cent increase from last year.
However, the hike using the old formula would have seen the cost rise to $16.82 per AUM, or more than 100 per cent.
The province has about 6,600 grazing lease agreements, and 2024-25 revenue was $15.8 million. Similar revenue is expected this year, the ministry said.
Contact karen.briere@producer.com
