Mandryk: Sask. agriculture minister's denials on foreign farmland ownership bizarre

[blackpowder]

That would only be in the hands of the respective generation.
For one to succeed, another must fail.

[AlbertaFarmer5]

Would just like to thank Chuck for starting this thread about agriculture, and for initiating the very interesting discussion that ensued.

It appears you are making progress with your TDS. Not even a single mention of Trump in this thread until now. That may be the first time you have managed that since the election.
Keep up the good work.
I will keep supporting you in your battle.

[Landdownunder]

Not exactly 100% sure on this in Oz every rural property over 5mill by a foreign investor needs approval and used to be 1 mill for houses probably changed

[farmaholic]

Regarding the threads original theme...

Where there is a will to circumvent the rules, there is always a way.
Especially if those rules are rarely or poorly enforced. Loop holes?
And if those rules have no consequence, what's the deterrent?
Offenders may be a step or two ahead of Authority.

If it's even possible, follow the money. Good luck.

[SmallTimeOperator]

The Farmland Security Board needs more staff, more money, and more legislated teeth to even hope to enforce the current legislation.

The onus needs to be changed to the new purchaser needing to prove citizenship before the transaction happens. Also, the onus needs to be on the purchaser to prove the source of the funds being used before the transaction closes. This would mean every land transaction in the province needs board approval.

This needs to extend to farmland leasing, and also to operating capital used to fund operations. There should be a requirement where every farm has to prove where their operating cash or loan has come from. Foreign operating cash is as big or a bigger problem than the ownership of farmland itself.

And by more legislative teeth, how about jail time for someone acting as a front for foreign money. And also confiscation of all capital gains if a foreigner out of the country is involved in a transaction.

[LEP]

The Farmland Security Board needs more staff, more money, and more legislated teeth to even hope to enforce the current legislation.

The onus needs to be changed to the new purchaser needing to prove citizenship before the transaction happens. Also, the onus needs to be on the purchaser to prove the source of the funds being used before the transaction closes. This would mean every land transaction in the province needs board approval.

This needs to extend to farmland leasing, and also to operating capital used to fund operations. There should be a requirement where every farm has to prove where their operating cash or loan has come from. Foreign operating cash is as big or a bigger problem than the ownership of farmland itself.

And by more legislative teeth, how about jail time for someone acting as a front for foreign money. And also confiscation of all capital gains if a foreigner out of the country is involved in a transaction.

Right. Vet 40,000 land transactions a year plus loan transactions? That's right up there with CRA volume of monitoring.

In fact I bet that is more than what is auditted by CRA in a year. The rest is monitored by computer and only anomalies see human eyes.

[farmaholic]

STO, to some extent it's too late unless the rules are enforced retroactively. The horses have already left the stable.

Was it simply lack of foreign and out of province ownership that kept Sask land prices at a discount to Alberta and Manitoba's? Or Was it simply economics, until grain farming became more profitable? In my opinion Alberta land prices were propped up by excess oil money sloshing around looking for a home. Manitoba land prices may have had an edge because of productivity. That being said, there are always areas within each province that had higher land prices than others in the same province.

Has foreign ownership of Western Canadian farmland been on the provincial radar in Alta and Manitoba as it has in Sask?

[blackpowder]

No, SK always had a different culture.
Chatted with an old boy from Yorkton yesterday that reminded me of that.

[shtferbrains]

It's been said cattle always do best in the shade of a pump jack.
Even better if they are ulta high priced purebred.

[westernvicki]

Something about the million dollar combine, and tractor requiring more land for economies of scale. But, the issue of foreign ownership is indeed one that is carefully guarded in many nations. Another issue, intergenerational land transfer is of concern in particular due to the demographics of our farming population
?
The CBC recently did a story, concerned about youth access to ag. You have to wonder, the motive of this story. As indeed entry of youth into agriculture is historically a barrier.

The UK has moved to tax inheritance, in an effort to redistribute land.

The capital gain tax will transfer a huge amount of western Canadian wealth to central Canada, money that tax policy could redirect into declining capital investment.

On a positive note, he rules over the most sustainable farms in the world and should put this on provincial border signs noting this. Then make provision to cash in on this with carbon tax credits enabling Saskatchewan to be paid for the billions in carbon sequestration via "cap and trade" as a measure to deal with falling income.

Land value and debt indeed are way more rewarding with profits.

This Ag Minister will have his hands full, hope he is a fast learner, has forward thinking advisors, and is immediately up to the task.

[foragefarmer]

STO, to some extent it's too late unless the rules are enforced retroactively. The horses have already left the stable.

Was it simply lack of foreign and out of province ownership that kept Sask land prices at a discount to Alberta and Manitoba's? Or Was it simply economics, until grain farming became more profitable? In my opinion Alberta land prices were propped up by excess oil money sloshing around looking for a home. Manitoba land prices may have had an edge because of productivity. That being said, there are always areas within each province that had higher land prices than others in the same province.

Has foreign ownership of Western Canadian farmland been on the provincial radar in Alta and Manitoba as it has in Sask?

All of Manitoba has had fierce competition on farmland purchases the past 15-20 years now.

Foregin investment purchases of farm land started in the 70's in Manitoba.

The Red River Valley (high production), Portage (vegtables), Carmen, Morden/Winkler (speciality crops) have been getting top dollars for farmland for decades.

Hutt's are clustered tighter within Manitoba compared to Sk and Ab.

Not directed at you soley Farma, but to others who have mention farmland rent prices,

Why shouldn't retiring farmers who worked their asses off for 60 years leave their land to children and grandchildren to collect rent on if they choose not to farm.

I see farmland as an investment for future generation to prosper on either way. I don't need to be the richest casket in the cemetery when the time comes.

[AlbertaFarmer5]

Keeping in mind that Canada is a capital starved nation and most of our wealth producing industries are highly capital intensive. Shutting out foreign investment would be fatal for industries such as mining and oil and gas.

Though in agriculture I suspect that is a zero-sum game where the biggest capital investment is in the land. Bringing more external capital in just drives the cost of land up.

[foragefarmer]

Thanks for the post, I never thought of that.

[shtferbrains]

I visited Denmark once.
They have strict laws guarding against foreign ownership of things like farmland and vacation properties.
They say if they didn't control it the Germans would have owned everything desirable long ago.

[shtferbrains]

Keeping in mind that Canada is a capital starved nation and most of our wealth producing industries are highly capital intensive.

Has been a big problem getting any investment here recently.
Real Estate is where much of the money has been going.