Foreign Land Ownership

[parsley]

I do not wish to see Saskatchewan land owned by foreigners. I'm not a globalist. Foreign-owned land in Saskatchewan will not be good for farmers or citizens or Canada.

[jamesb]

If someone is moving here to farm fine. But I am on the same line of thinking that absentee land ownership will be a very bad thing. Most of our ancestors came to this country because the land was held by landlords and they were only tenant farmers at best.

[bgmb]

I agree. should be a big issue for western canada. dont hear much about it.

[phoenix64]

Have a hard time understanding this farming model called tenancy. Seems to be gathering momentum the world over. In countries like the u.s. the only way some producers have ever grown crops is as a tenant, quite sad really. In my life experience, farmers that own the land they farm always out produce the farmers that rent the land on 3-5 year lease terms. In our area rented land has been pushed to extremes with lentil/lentil/canola/soybeans rotations (no cereals for fibre and anchor) to the point of ditches filled full of blow dirt after a hot dusty dry spring. Landlords stand around in amazement? they wonder how on earth could that happen? pissed off but we're happy to take every last cent of profit out of his poor tenant, then bitch when the tenant is pushing rotations to try and make a dollar. Farmers seem powerless to stop it, society in general - urbanites could care less how their food ends up on the supermarket shelves, as long as it remains cheap, the only way I think it could be changed is if govts saw it as a threat to food security.

[farmaholic]

Quit renting from the ****ing "investors"...they'll get the message.

[MBgrower]

The higher my land value goes the better. why limit foreign ownership?

[biglentil]

Sure mb open it so the chinese can use it as there next piggy bank. Like the multimillion dollar houses in Vancouver that are rotting vacant all the land can go to weeds. **** the next generation they can be serfs.

[phoenix64]

Mbgrower ive heard your statement a million times but unless your willing to sell or take the chance to leverage that equity on what? Honestly how does the asset gain help you monetarily? Cash flow is relatively the same on my farm despite my land value increase with the exception of a couple years of 14 dollar canola. I foresee huge property tax increases coming down the pipe for landowners going forward. Govts can't resist the urge to get a piece of that action, which will invariably cut into our margins. Don't get me wrong net worth increase is great but don't see how that improves my cash flow.

[Guest]

The higher my land value goes the better. why limit foreign ownership?

so young people can still farm

[farmaholic]

The higher my land value goes the better. why limit foreign ownership?

With all due respect...you may already own land to appreciate. What about the young guy who can't compete with "cash" and people looking for somewhere to park it. That's what is happening here. The economics of making payments and a living on it are disturbing. I realize we don't owe anyone anything....but foreign investors and even domestic investors(speculators) are going to turn back the clock for our own who want to own their own land and make a living farming it.

Re renting: if all you ever did your whole life is rent and supported the ag industry and you don't have any assets after, cash or the land or a really nice house or otherwise.....why did you bother?

Walk away spiritually, mentally, physically and financially broke?

[ajl]

The real issue here is the manipulation of the market through reckless non stop money printing by the central banks all around the world. That is what makes the speculation game the place to be. Stop the printing press, interest rates rise and fall with the supply and demand for credit and real estate values don't change much so there is little incentive for foreign speculators to buy land. Problem solved.

[Oliver88]

Parsley, is this topic being discussed for a possible change in law?

It seems like the law is already being "skirted" to allow this to happen in cases but opening it up to Chinese and other foreigners would be a HUGE mistake.

[fjlip]

"Re renting: if all you ever did your whole life is rent and supported the ag industry and you don't have any assets after, cash or the land or a really nice house or otherwise.....why did you bother?"

There are some BIG operations that rent half or more around here. All seem to be profitable. Land is paid for after tax, so you live poor die rich or at least your kids will be rich.
Most businesses last about 3 generations then sell out. We are #3.
60% of US farmland is rented. Farmers getting OLDER, and a huge asset transfer happening in next 20-30 years.

[macdon02]

Capital flow folks. Grab a monthly cad chart. Yes Canadian land is cheap if you think the loonie is going higher. But that ain't happening unless crude breaks loose. Yes there's Chinese and European money coming in and is likely in USD. But to exchange USD into Canadian dirt especially when cap gains exemption and restructuring of corporate tax plus foreign ownership tax on real estate is on the table, its a stupid ****ing move imo. Buy dirt in a more favorable tax district. But it isn't my money do as you wish. I'll add that govt on all levels will increase the tax load until oil royalties start getting back to the levels the provinces are budgeting at.

[macdon02]

Actually it makes more sense to buy ranch land in Wyoming where the tax rate is second lowest only to Florida thereby hedging the CAD and still having ag exposure all at lower tax rates. Even an orange grove would make more sense to rent out while renting Canadian grain land. Dyodd. Each to his own. Tax rates matter.