REGINA — Opposition Finance critic Trent Wotherspoon is calling on the provincial government to halt out-of-province real estate trusts and investment funds from buying Saskatchewan farmland.
At a news conference at the legislature Monday, Wotherspoon pointed to a recent meeting of the Standing Committee of the Economy with Agriculture Minister David Marit and other officials.
Wotherspoon said at that committee the Sask. Party government had “admitted that they've been allowing large outer province real estate investment trusts and funds to buy up Saskatchewan farmland.”
“These are big investment entities whose priorities aren't rural communities and aren't the long-term health and strength of our ag sector.”
As one example, he pointed to the government giving the green light to Avenue Living, an Alberta-based real estate investment trust, to acquire well over 80,000 acres of Saskatchewan farmland.
“Over 80,000 acres,” said Wotherspoon. “Now think about what that means, and this is just one investment trust. That's land that could have supported local producers, young farmers, multi-generational family operations, primary producers across this province, instead of being consolidated into the hands of a large out-of-province investment fund. And that's just one example.”
Wotherspoon added that when pressed, the “government admitted that other trusts and investment funds have been allowed to buy up Saskatchewan farmland.”
“This is in contrast to statements that have been made that institutional investment wasn't on for farmland, pension plans weren't allowed, for example. But when pressed, they didn't provide names, they didn't provide the number of acres that have been acquired, and they refused to tell the people of Saskatchewan just how much land is now in the hands of these institutional investment entities. That lacks of transparency, and it's unacceptable.”
He told reporters that for 20 years, the government has “been far too soft when it comes to farmland ownership,” once again blasting the Sask. Party for having “failed to crack down on illegal foreign farmland ownership.”
“Now we know that they've been allowing large investment funds to move in and consolidate land, all while shutting out producers. It makes it harder, of course, for young producers, young farmers to get started. It makes it harder for strong, multi-generational Saskatchewan farms to expand and remain strong and viable.”
Wotherspoon had three calls for the government that day. One was to “come clean with the people of Saskatchewan” and disclose which investment trusts and funds own farmland in this province and how many acres they control.
The second was to “take immediate action to strengthen the rules and enforcement around farmland ownership.”
The third was to ensure that the land that comes onto the market is “protected for producers, not bought up and consolidated by large investment entities or illegal foreign entities.”
The calls from the NDP come in the wake of the Monette Farms creditor protection process, pointing to the very large amount of Monette farmland that is due to hit the market as a result.
“I think right now we see this large mega-farm that's going through creditor protection, facing significant financial hardship, and that has a cascading effect on agriculture in this province,” said Wotherspoon. “And we need to be really active in assessing what's happening there.”
Wotherspoon said what the government should have done a long time ago is “they should have stepped up and cracked down on illegal foreign farmland ownership. And very importantly, as we've learned, they've been green-lighting this institutional investment, the investment funds and trusts. They should be ending the acquisition of farmland by those investment funds and trusts.”
Wotherspoon said what was happening was that the interests of “big, strong, mainstream, multigenerational farms and producers across Saskatchewan” had been “sold out by this Premier.”
“We need to make sure, ultimately, that our mainstream, strong, multigenerational farms and producers across this province, primary producers across this province, have the foundation and footing they need today and that they have the strength and viability for tomorrow. Agriculture is the backbone of our economy. It's the foundation of rural communities where producers are and those multigenerational farms. We need to make sure that we're supporting agriculture and acting in its best interests for today and for future generations.”
When asked about the issue by Wotherspoon in Question Period, Marit said the government does listen to farmers and producers.
“That's why we enacted on the Farmland Security Board. That's why we strengthened the regulations, Mr. Speaker. That's why we put into place all the recommendations from the provincial auditor, Mr. Speaker.”
“Let's be perfectly clear, Mr. Speaker. If you are not a Canadian citizen or not a permanent resident in Canada, you cannot own land in the province of Saskatchewan. If you're a Canadian company owned by Canadians, you can own land in the province of Saskatchewan.”
Marit also read into the record an item dated Dec. 19, 2002:
“Legislation to remove restrictions on ownership of Saskatchewan farmland becomes law Jan. 1, 2003, under the NDP government. The new clause removes all restrictions on ownership for Canadian individuals and companies. 'Saskatchewan needs increased investment to ensure the long-term sustainability of our rural communities,' Justice Minister Chris Axworthy said. 'Stakeholders have said removing ownership restrictions would encourage development in both the livestock industry and our value-added sectors. That kind of development provides new opportunities for Saskatchewan.'”
