Restrictions on SK Farm Land Ownership
07, May 07, 2013 - Filed in: General Interest
Saskatchewan is seeing an unprecedented increase in the demand for land due to a number of factors, including strong commodity prices, low interest rates and a positive outlook for agriculture. The increase in demand is not only coming from local farmers, but from investors from across Canada and beyond. It is important to be aware of certain restrictions related to farm land ownership.
To own land in Saskatchewan you must be a Canadian citizen or permanent resident of Canada or 100% Canadian-owned entity (corporation, partnership, syndicate, joint venture, co-operative, association) whose shares are not traded on the stock exchange. The Saskatchewan Farm Security Act restricts ownership, leasing, and having any other interest in farm land that would normally accrue to the owner of farm land, if prospective purchasers do not meet any of the above criteria. The Act also contains provision to fine owners and/or force divestiture of farm land where the owners are not complying with the Act.
There is an application process for an exemption to the above requirements that potential farm land purchasers can access to have their situation considered. The Farm Land Security Board reviews these applications and can approve an exemption if it is satisfied that it is appropriate to do so . The Board's website provides additional information, including previously approved exemptions that may be helpful for potential purchasers to review.