Open for business - Saskatchewan farm land ownership
By Ken Ziegler
Since first being introduced in 1974, the law governing the ownership of Saskatchewan farmland has been changed many times. Until recently, farmland ownership laws have been much more restrictive in Saskatchewan than has been the case in either Manitoba or Alberta.
Saskatchewan has restricted ownership of Saskatchewan farmland by Canadian residents to a maximum of 320 acres. Neither Alberta nor Manitoba has similar restrictions. All three provinces restrict ownership of farmland by non-Canadian residents. Saskatchewan limits ownership of farmland by non-Canadian residents to 10 acres, whereas Alberta has a limit of 20 acres and Manitoba has a limit of 40 acres.
Saskatchewan has suffered a steady decline in rural population, an aging farm population and a restricted number of willing investors in agriculture. These factors, coupled with a growing demand by residents from other provinces to invest in Saskatchewan farm land, has recently moved the Government of Saskatchewan to undertake a review of the farmland ownership rules.
The Standing Committee on Agriculture conducted hearings with respect to the agricultural land holding provisions in Saskatchewan. A common theme in witness submissions to the Committee suggested that farmland ownership rules need to change to address fundamental concerns in rural Saskatchewan and be competitive with neighbouring jurisdictions. The Committee considered these submissions and recommended changes in the law to the Government of Saskatchewan.
The Saskatchewan Farm Security Amendment Act, 2002, is the result of this process. This Act has been passed by the Saskatchewan Legislature and will be proclaimed law this fall. The Act now provides for the following:
A person who is a Canadian citizen or is resident in Canada (183 or more days per year) is no longer restricted in the amount of Saskatchewan farm land he or she can own;
Similarly, Canadian companies involved in the business of farming are not restricted in the amount of Saskatchewan farm land they can own; but,
Non-resident persons and non-Canadian owned companies are still restricted to 10 acres of farm land, unless special permission is granted by the Farm Land Security Board;
A non-Canadian owned entity may own up to 320 acres of Saskatchewan farm if the majority of the issued voting shares are legally or beneficially owned by Saskatchewan residents.
Over the past few years, there has been a growing trend among agribusiness in both Alberta and Manitoba to expand into Saskatchewan. Many factors have contributed to this, but the significant difference in land values has certainly driven much of this trend. In some cases, this investment has been in the form of an expanded land base intended to complement the existing farm operation; in other cases, it has been in the form of a relocation of part of the farm business or the establishment of a new operation in Saskatchewan. We can only speculate on how the changes to the Act will impact on this trend, but it is clear that the unrestricted ability by non-Saskatchewan residents to now invest in Saskatchewan farmland will facilitate those individuals and companies seeking to expand or establish new agribusiness in Saskatchewan.
There was substantial evidence submitted to the Standing Committee on Agriculture that much of the new agricultural capital (both human and monetary) in Saskatchewan will come from Europe. This prompted the committee to recommend another significant change to the law—one that would allow non-Canadian residents to own up to 320 acres per person. The government of Saskatchewan chose not to include this recommendation in the Act, but with the winds of change blowing across rural Saskatchewan it remains to be seen whether further changes will be made to farmland ownership in Saskatchewan in the near future.
Ken Ziegler is President of the Prairie Centre Policy Institute.
web posted August 12, 2002
Here are some of my comments on the Act...
In Canada every province has different rules governing real estate
ownership by foregners, and/or non-residents. Some provinces have
restrictions, some dont.
None have restrictions on non-resident home ownership. Period.
You may buy home freely anywhere in Canada!
In Saskatchewan we have no barring of foreigners owing
real estate. There are no restrictions whatsoever for
owing homes. There are some restrictions, though, on owning land over 10 acres.
Restrictions on land ownership only applies to persons NOT RESIDING in Saskatchewan.
A foreigner, a tourist, a visitor,-who resides in Canada for at least 183 days of the year
can legally own land.
One way to do this is to buy a home. In Saskatchewan small town a simple two-bedroom
home can be purchased for about US$10,000.
183 day is not etched in stone. It is rather a benchmark. Person residing in Canada,
say, for the summer season, would be considered a resident too.
Canada Immigration recognizes this type of residency as a visitors with a
'vacation home in Canada',
and allows a six months per entry stay in Canada. Then one would have to briefly leave Canada,
and may reenter under the same conditions.
That would legally allow you to buy land, you would work it for your
benefit, you would visit it anually during the growing
season. In doing all so, owing home, using land, you
have established, what government defines, as
COMMUNITY TIES, you go to church, and potluck suppers,
you have a library card, you opened a bank account,
you go to a coffee shop to bullshit with locals. By
government own definition you are a RESIDENT.
What government does not want is foreign absentee
landowners/investors that dont live at all in the provonce, and buy
land simply for speculative reasons. What they do want, people from
abroad is to come in and be a part of a community.
Now, if you wanted to become a PERMANENT RESIDENT, you can also apply,
it takes upto a year to get the RESIDENCY, if Canada considers you a
GOOD PERSON, they will likely grant you a PERMANENT RESIDENCY.
My wife is Japanese. She does not have Canadian citizenship.
Her name is on all our land, some
2000 acres. Nobody ever questioned that.
To live and own land in Canada, a popular American misconseption...
one does not lose American citizenship. Canada and USA recognize dual citizenship.
And its absurd! United States will not strip a person of their citizenship for
living, owing land in Canada!
When buying land/homes, all you need is a name and
address. No ID needed to present, no personal appearances required,
there is no formal application to make, no scrutiny of
buyers by the government. Simply give me a name, address, and within
two weeks land/home will be registered. Pronto!
An absentee investor, can, probably get away with buying
land here, as land restriction in place are on a honour
basis, you HAVE TO REPORT YOUR SITUATION, or until YOU
GET CAUGHT.
If you are not ready to own home in Canada, or reside in Canada for 6 months of the year,
you may still own land by having land registered by a third person/lawyer/Trustee
residing in Canada;
by opening a Canadian company with a Canadian Resident Director, who ostensibly controls
the land, but you are the de-facto owner;
and by registering a mortgage on the land, possibly by entering into agreement
with a local person,
land is registered in someone else's name, you in fact controlling it by way of a mortgage.
I have experience in dealing with Americans.
Saskatchewan is almost unknown to them. Once they come, they really
do like the place, the land scenery, and they find good deals on land and homes.
My objective is not only to sell property. I want a person to be
happy with the purchase, and above all I want them to utilize the
land and home to become a part of a Community.
