MBP E-Newsletter: July 7/2023

E-Newsletter dsfsfa

An update from MBP July 7, 2023 mbbeef.ca

Manitoba Government Announces Action Plan to Protect

Water

Resources for Generations to Come

Clean, Protected Water Sources Vital to Economic Growth, Stronger Communities: Klein, Johnson

(Province of Manitoba media release, July 5, 2023)

The Manitoba government is releasing its initial water strategy action plan a focused guide to specific actions to ensure sustainability of the province’s valuable water resources for current and future generations of Manitobans, Environment and Climate Minister Kevin Klein and Agriculture Minister Derek Johnson announced today.

“As a province home to 100,000 lakes, the actions outlined in the initial water strategy action plan will guide a strong path forward to protect our precious freshwater and way of life in Manitoba,” said Klein. “We are fortunate to live in a province with an abundance of the world’s most valuable resource, and our government is committed to managing this resource responsibly and effectively.”

In November 2022, the Manitoba government released a new comprehensive water management strategy. The first strategy of its kind in nearly 20 years will set the direction for Manitoba’s water future, providing a framework to conserve and protect the environment, enhance resiliency, improve water quality and availability, and enhance engagement and Indigenous inclusion in water management while fostering economic development opportunities. The Manitoba government recognizes that additional direct and collaborative work with Indigenous Peoples in water management and stewardship is essential, alongside other key partners.

“Manitoba Association of Watersheds would like to commend the Manitoba government for its efforts to work collaboratively with Manitoba communities in the development of the provincial water strategy and the water strategy

action plan,” said Garry Wasylowski, board chair, Manitoba Association of Watersheds. “The commitment from the Manitoba government to provide funds that directly support the excellent work of watershed districts will have a positive impact on watershed health and the province's resiliency to climate change.”

The initial action plan builds on the water strategy framework, outlining new waterrelated projects, programming and initiatives that the Manitoba government will continue to advance over the next several years. The action plan identifies 72 actions, representing an investment of over $990 million over the next five years including:

• $763.5 million in capital investment in provincially owned water-related infrastructure through the Department of Transportation and Infrastructure’s 2023 Multi-year Infrastructure Investment Strategy, which includes $600 million for the Lake St. Martin channel;

• $221 million for programming under the Sustainable Canadian Agricultural Partnership over the next five years, cost shared 60 per cent federally and 40 per cent provincially;

• $4 million in enhanced resources for the Manitoba Water Services Board;

• $1.64 million for enhanced drinking water safety; and

• $1.47 million in new funding within the Department of Environment and Climate for water strategy implementation, including $600,000 for watershed districts.

Continued on page 3

Manitoba Government Announces Action Plan to Protect

Water Resources for Generations to Come Clean, Protected Water Sources Vital to Economic Growth, Stronger Communities: Klein, Johnson

“Our government inherited an environment where Lake Winnipeg was deemed the most polluted lake in Canada in 2013,” said Johnson. “The previous approach was irresponsible. In contrast, this action plan allows agricultural producers to continue being good stewards of the land while playing an important role in Manitoba’s overall economy”

In partnership with stakeholders and organizational experts, the Manitoba government’s action plan will transform the water management strategy framework’s focus areas and strategic objectives into concrete actions.

"Manitoba farmers fully endorse a collaborative provincial water management strategy and action plan involving all levels of government and the agricultural sector," said Jill Verwey, president, Keystone Agricultural Producers.

“This plan will act as a guide as we move forward sustainably and take action to protect our water, while continuing to support the farming industry— a key driver of Manitoba’s economy”

The document will be updated regularly to reflect work completed and to provide clarity on next steps and future initiatives, the ministers noted, adding that to increase transparency and accountability and to ensure continued collaboration, the Manitoba government will form a stakeholder advisory panel to help guide ongoing implementation of the water strategy and action plan.

To read the initial water action plan, visit https://www.gov.mb.ca/sd/pubs/water/wat er_action_plan2023.pdf

For more information on the Manitoba government’s water management strategy, visit https://www.manitoba.ca/ water/

Manitoba Government Offers Free Provincial Park Entry July 10 to 16

(Province of Manitoba media release, July 4, 2023) The Manitoba government is once again offering free entry to all provincial parks for a full week in mid-July, including Canada’s Parks Day weekend, Natural Resources and Northern Development Minister Greg Nesbitt announced today.

“For the third year in a row, our government is providing week-long free provincial park access to coincide with Canada’s Parks Day,” said Nesbitt. “This initiative allows all Manitobans to enjoy our parks’ extraordinary natural beauty, intriguing historical sites and diverse recreational activities.”

Vehicle permits will not be required to visit provincial parks from July 10 to 16. Overnight camping fees still apply, as do entrance fees to national parks. Manitoba’s provincial park entry fees are among the lowest in Canada, this weeklong offer and other free park access at various times throughout the year help ensure that cost is not a barrier, noted the minister.

The calendar of free interpretive events and experiences including guided hikes, historical tours and campfire talks, is available at https://gov.mb.ca/nrnd/parks/education-andinterpretation/event-listings.html.

Several campgrounds have also organized special events to celebrate Canada’s Parks Day on July 15. Visitors can check with the local campground office for details on any activities happening in the park.

Individuals who wish to camp in a provincial park can make a reservation through the Parks Reservation Service

at www.manitobaparks.com or by calling 1-888482-2267.

Tips for visitors and campers at Manitoba provincial parks include:

• check the Manitoba Parks website at www.manitobaparks.com for advisories before travelling;

• all campers must check in at campground offices upon arrival to receive camping permits;

• be ‘Wildlife Smart’ by maintaining a clean campsite, keeping all food, trash, toiletries and cooking utensils locked in a vehicle or trailer, and pack out trash and recyclables before leaving;

• keep all pets on leash; and

• keep all campfires in approved pits such as those found in campsites and check with the campground office for any campfire restrictions.

Campers are reminded that because the emerald ash borer has been confirmed in Winnipeg, no firewood can be transported outside the city. Transportation violations can result in charges and fines of up to $1,300 for individuals or $15,000 for businesses. Firewood is available for purchase from local retailers at most campgrounds.

Manitobans can stay up to date with provincial park news, activities and events by following Manitoba Parks on Facebook at www.facebook.com/MBGovParks or on Twitter at www.twitter.com/MBGovParks.

Governments of Canada and Manitoba Collaborate to Plant One Million Trees Annually

(Joint Canada/Manitoba media release, July 5, 2023) Planting two billion trees benefits all Canadians. Diverse forests have many benefits: they capture the carbon in growing trees to reduce greenhouse gas emissions and help in the fight against climate change; they enhance forest resilience to climate change by planting the right tree species in the right places and restoring wildlife habitat; and they support human well-being by creating more green spaces for recreational activities and spaces for connecting with nature, better regulation of temperature in cities and reduced risk of wildland fire and floods.

Today, Terry Duguid, member of Parliament for Winnipeg South and parliamentary secretary to the minister of environment and climate change, on behalf of the Honourable Jonathan Wilkinson, federal Minister of Natural Resources, Manitoba Natural Resources and Northern Development Minister Greg Nesbitt, and Manitoba Environment and Climate Minister Kevin Klein, announced Manitoba’s multi-year tree-planting agreement, which benefits from a federal contribution of $8.85 million under the 2 Billion Trees (2BT) program. Additionally, the Manitoba government is contributing $8.85 million to this initiative.

Under this nine-year agreement, the Manitoba government will plant up to 1 million additional trees annually. Seedlings will be planted on forest lands that have been affected by wildfires and other natural disturbance events, and large saplings will be planted annually in rural, urban and Indigenous communities. These trees will reduce greenhouse gas emissions in Manitoba by an estimated 52,473 metric tonnes of carbon dioxide by 2050, the equivalent of taking 16,076 vehicles off the road.

The Indigenous projects are intended to facilitate Indigenous participation on reforestation initiatives through capacity building, planning and site selection, seed collecting, preparation and monitoring. Earlier this spring, the 2BT program supported a planting project in Norway House Cree Nation, providing employment and skills training for 19 community members to establish a new forest. The Manitoba government provided 50,000 conifer seedlings, funding to pay the planters, and in-kind training for the project.

In 2023, the Manitoba government will focus on identifying more planting sites and partners as well as prepare areas for planting. In 2024, large-scale planting will begin. Since 2018, the Manitoba government has planted 8.6 million trees, an average of 1.7 million per year.

The Government of Canada’s 2BT program is helping to clean the air, keep neighbourhoods cool in the summer, create jobs and fight climate change while protecting nature. By working together with provinces, territories, local communities and Indigenous Peoples, Canada continues to build a strong, healthy future for generations to come.

Quotes

“Trees are essential to our lives they capture carbon, improve air quality and support wildlife and they are important allies in our fight against climate change. That’s why Canada has committed to planting two billion trees. Through this investment to plant over 1 million trees annually across Manitoba, we are showing how collaborative work between the federal government and our provincial partners can ensure that the right tree is planted at the right place at the right time.” The Honourable

Governments of Canada and Manitoba Collaborate to Plant One Million Trees Annually

Jonathan Wilkinson Canada’s Minister of Natural Resources

“Manitobans are proud of our provincial forests and our urban canopies. Our trees capture and store carbon pollution while providing us with an abundance of clean air and habitat space for wildlife. This investment to plant one million trees annually in Manitoba will fight climate change while strengthening our province’s precious green spaces for generations to come.”

— Terry Duguid,

member of Parliament for Winnipeg South and parliamentary secretary to the minister of environment and climate change

“The Manitoba government recognizes the benefits trees and forests provide all of us. Through this joint initiative, millions of additional trees will be planted in our forests and communities in the coming years. These trees will help fight climate change, create new healthy forest ecosystems, clean our air, beautify our communities and create more green jobs throughout the province.” — Manitoba Natural Resources and Northern Development Minister

Greg Nesbitt

“Manitoba’s provincial forests along with our urban tree canopies, including here in Winnipeg, are critical to combating climate change. Our government is proud to partner with the Government of Canada on the 2 Billion Trees initiative. By planting trees, we are helping restore nature, enhancing precious forest ecosystems and cleaning our air.” —

Manitoba Environment and Climate Minister Kevin Klein

“Norway House Cree Nation was pleased to take part in the planting of 50,000 trees this spring as part of Canada’s 2 Billion Trees initiative and the settlement with the Manitoba government. A total of 19 community members were involved

in our first tree planting project with 17 devoted planters who worked in extremely hot conditions. We were proud of their accomplishments and the quality of their planting. Staff within the Natural Resources ministry were exceptional in training and working with Norway House personnel. We would like to acknowledge the work of Minister Greg Nesbitt in moving this project forward. The leadership and all Norway House Cree Nation membership look forward to continuing and even expanding our work with Canada and Manitoba in future years to continue to reforest areas that have been previously cut to make a positive difference to our world and future generations.” Chief Larson Anderson, Norway House Cree Nation

Quick Facts

• Last year, the Government of Canada and the Manitoba government signed an Agreement in Principle (AiP) under the Provinces and Territories stream of the 2BT program. Under this agreement, Canada and Manitoba are leveraging their shared commitment to delivering social, economic and environmental benefits for communities through tree planting.

• AiPs outlines federal, provincial and territorial collaboration on planting two billion trees by defining the objectives of each tree-planting project as biodiversity enhancement, habitat restoration, carbon sequestration, permanency of forest cover and several monitoring activities postplanting. They are further supported by the signing of contribution agreements. Work on finalizing additional agreements with provinces and territories to plant more trees across Canada is well underway.

Producers Encouraged to Provide Feedback on Proposed Changes to the Agricultural Crown Lands Leases and Permits Regulation Until July 17

(Source: Manitoba Agriculture Website) On June 2, 2023, the Minister of Agriculture announced proposed changes to further enhance the Agricultural Crown Lands Program. Through amendments to the Agricultural Crown Lands Leases and Permits Regulation, under The Crown Lands Act, Manitoba is proposing to:

• Determine forage capacity at the outset of a forage lease or renewable permit (evaluating AUMs)

• Expand eligibility to hold an agricultural Crown lands lease or permit to include Indigenous organizations

• Allow terms of new leases (post October 2019) to be extended by five years to a maximum of 20 years where a forage management plan has been implemented and good land management has been demonstrated

• Allow new leaseholders (post October 2019) to transfer the remainder of thelease term to another eligible party

• Allow leaseholders to nominate the next leaseholder for leases issued before October 2019, provided the lease is not selected through Treaty Land Entitlement

• Valuing improvements at the end of a lease through a third party appraiser

Please review the Agricultural Crown Lands Leases and Permit RegulationProposed Amendments.

Please review the Agricultural Crown Lands Leases and Permit Regulation - Proposed Amendments. Or visit pages 8-29 of this newsletter.

Send us your thoughts and suggestions to help refine Manitoba's proposed Agricultural Crown Lands Leases and Permits Regulation Comments can be provided through the Manitoba Regulatory Consultation Portal at http://reg.gov.mb.ca/home

For more information on agricultural Crown lands, visit https://www.gov.mb.ca/agriculture/landmanagement/crown-land/.

Frequently Asked Questions

Agricultural Crown Land Leases and Permits Regulation, Amendment

June 2023

The Government of Manitoba is amending the Agricultural Crown Lands Leases and Permits Regulation to improve the productivity of Agricultural Crown Land (ACL) and better meet the needs of ACL leaseholders, Manitoba’s livestock sector, and Indigenous communities and organizations. Information on this page reflects the ACL leasing program in accordance with the proposed amendments.

Q. What effect will the changes have on my current lease?

A. None. All current leases maintain all expiry dates, rental rates, permissions, obligations, terms and conditions as when they were issued. The changes to the regulation will provide current leaseholders with increased flexibility to transfer a lease or nominate the next leaseholder, and an option to extend the term of new system lease.

Q. What is the difference between a legacy lease and new system lease?

A. A legacy lease is a lease issued before October 2019 and a new system lease is a lease issued after October 2019. See the table below.

Legacy Lease New System Lease

Lease Term

Length

Expires at age 65, but renewable in 15 year terms after age 65. Essentially a lifetime lease.

Renewable Yes, in 15 year terms

Extendable No, extensions are not required as this type of lease is renewable.

Transfer to Family Yes, leaseholders can transfer to immediate family members only.

Transfer outside of Family

No, leaseholders cannot transfer outside of immediate family members. As proposed, the amendment would allow leaseholder to nominate non-family members for a new system lease, but not a legacy lease

15 year lease term.

No, new system leases are not renewable.

Yes, the proposed amendment would provide an option to extend to 20 years with an approved Forage Management Plan

Yes, currently available to transfer to immediate family for remainder of 15-year lease. The proposed amendment would allow possibility of 5-year extension.

Yes, for remainder of 15-year lease term. The proposed amendment would allow possibility of 5-year extension.

How do I get one?

Manitoba no longer issues Legacy leases. The only way to access a legacy lease is through an immediate in family transfer.

Manitoba’s current method of issuing leases is through auction or transfer from another new system leaseholder, or nomination by a legacy leaseholder.

Q. Does the amendment allow me to sublet my lease to another producer?

A. No. There are no proposed changes to allow subletting. As proposed leaseholders will continue to be required to be actively involved in the day-to-day management of livestock and forage. Custom grazing continues to be permitted. The difference is in the active management of the lease where the leaseholder is required to be at the property checking or moving cattle, fixing fence, monitoring forage stand health etc.

Q. Does status on the leaseholder ban list impact decisions made on applications to extend, transfer or nominate?

A. Under Section 18.1 of the current regulation, the director may prohibit a person, band, or organization from participating in an auction or decline to receive an application from a person, band or organization for an ACL lease or permit for a period not longer than five years. Through operational policy, if Manitoba determines that a leaseholder:

 is not actively farming,

 is not maintaining the sustainability of the parcel for farming,

 provides false/misleading information to the department, or

 does not pay their lease or permit fees,

the leaseholder is put on a leaseholder ban list for two years which restricts participation in an auction or results in denying their application. As a result, a leaseholder’s status on the ban list would also restrict their ability to transfer, extend, nominate, or renew a lease or permit.

Q. Can I prevent the public from accessing parcels of leased or permitted Agricultural Crown Lands?

A. No. The amendments do not affect public access rights. The public can access ACL under lease. The public cannot disturb livestock or disrupt farm and ranch operations.

Determining Land Productivity

Q. What is an AUM?

A. AUM stands for Animal Unit Month. AUMs are the basis for determining forage capacity of each ACL parcel as determined by Manitoba Agriculture. The goal is to place the optimum number of animals on each parcel for the forage it can produce, thereby ensuring efficiency while leaving enough forage for quick and complete recovery.

An Animal Unit Month (AUM) is the amount of forage required by one animal unit (AU) for one month. One animal unit is equal to 1,000 lb (450 kg) beef cow with or without a nursing calf with a daily intake requirement of 26 lb. (11.8 kg) of dry matter forage.

The stocking rate of the parcel is based on two factors a) time on pasture, and b) number of animal units. For example, a parcel capable of producing enough forage for 40 AUMs, could sustain 10, 1,000 lb beef cows (AU) for 4 months (10 cows x 4 months = 40 AUMs). Generally, cows are larger than this and one

cow may account for greater than one AUM. If the cows are equivalent to 1.3 AU, the same parcel may only support seven or eight cows for the same four-month period.

For the same parcel, an alternative grazing plan may have cows on the parcel for only one month. If the cows are equivalent to one AU, then 40 cows can be grazed for the month, if they are 1.3 AU.

Although simplified, the parcel in each example is capable of producing 40 AUMs.

Q. When is forage capacity of a parcel determined? Can I request a review of the AUMs on my lease?

A. Manitoba Agriculture reviews are done at the time of allocation or renewal. Any improvements to forage productivity because of management will not result in increases in AUMs and thus rental rates during the lease term. As proposed in the regulatory amendment, further reviews during the lease period will not be conducted, even if the productivity decreases If leaseholders have concerns about the assessed AUMs (productivity), they can surrender the lease or permit.

Investing in Productivity

Q. Are rental rates changing?

A. The rental formula is not changing. Forage rent fees are calculated using a market-based formula: 3.5% of the market price of beef multiplied by the forage capacity or total AUMs. As calf prices change, rental rate will fluctuate

A 50% rent relief discount is in place for 2023. The proposed amendment formalizes Manitoba’s commitment to reduce rates by 33% in 2024, and 15% in 2025 to help producers recover from recent extreme moisture years.

Expanding Eligibility

Q. Are there any changes to the eligibility to hold an ACL lease?

A. Yes. In 2019, Manitoba expanded eligibility to hold an ACL lease or permit to include First Nations bands. The proposed amendment further expands the eligibility of a band to include any non-profit organization that principally represents the interests of one or more bands, individuals of Metis decent, or holders of aboriginal or treaty rights.

Extending a Lease

Q. What is a Forage Management Plan?

A. A forage management plan lays out practices that support sustainable management of forage leases and improved forage productivity. The goal of the plan is to increase livestock production and sustain forage stands on ACL land at highly productive levels.

As proposed in the regulatory amendment, a professional agrologist must approve the plan five years before the expiry of the lease to qualify for a five-year extension. In order to receive the five-year extension, the leaseholder must demonstrate that they have been in substantial compliance with the forage management plan.

For example, a lease issued in 2020 must have a forage management plan in place by December 31, 2029, or five years before the initial expiry date of December 31, 2034. If approved for the extension, the final expiry date of the lease would be December 31, 2039.

Q. Is there funding or support available to producers to improve ACL productivity?

A. Funding is available through the Sustainable Canadian Agricultural Partnership’s (SCAP) Grasslands and Grazing Management Funding Stream. For ACL leaseholders, eligible activities include development of forage management plans and purchasing fencing and watering systems.

Manitoba Agriculture is investigating opportunities to increase extension services to forage leaseholders, and offering cost-shared programs aimed to improve ACL productivity. This support may work in concert with the developing forage management plans, following them, and verifying their success.

Transferring a Lease

Q. Does the proposed regulatory amendment reinstate the former ‘Unit Transfer’ provision to its pre-2019 format?

A. No. Unit transfers were removed in 2019. Since 2019, leaseholders can only transfer leases to immediate family members, which includes spouse, common-law partner, parent, child, grandparent, grandchild, brother, sister, aunt, uncle, niece or nephew of a person, including a person's corresponding inlaws and step-relations. The proposed amendment would allow legacy leaseholders to ‘nominate’ an eligible party to take on a new system lease for a term of 15 years extendable to 20 years if a forage management plan was prepared and complied with.

Q. Can I transfer my lease to someone outside my family?

A. Yes. As proposed, if you hold a new system lease, you could transfer the remainder of the term to anyone eligible to hold a lease or permit. The transferee would hold the lease for the remainder of the original 15-year term In this case, the transferee would be eligible for a five-year extension providing requirements for extension were met.

For legacy leaseholders, transfers are limited to family members with and the legacy lease and its features would endure. The proposed amendment provides an opportunity to nominate a non-family leaseholder, however, in this case the nominee would be issued a new system lease with a 15-year term extendable to 20 years if a forage management plan was prepared and complied with.

Nominating a New Leaseholder

Q. What is the new nomination process?

A. The regulation amendment would permit legacy leaseholders to nominate the next leaseholder. Legacy leaseholders would apply for a nomination certificate, and if approved, use the nomination certificate to apply to nominate the next leaseholder. As proposed, the next leaseholder would be issued a new system lease of 15-years with the opportunity for a five-year extension.

Q. Is the nomination certificate approval guaranteed?

A. No. Once a leaseholder applies for a nomination certificate, the application is irrevocable. Manitoba Agriculture would circulate the parcel through the Treaty Land Entitlement process and to Indigenous communities to identify impact to aboriginal and treaty rights. If the land is located in a Treaty Land Entitlement (TLE) Community Interest Zone (CIZ), eligible First Nations can select the land under TLE. If selected, the land is no longer available for lease and the current lease would be canceled. If not selected and no concerns related to treaty and aboriginal rights are identified, the land would be available for lease by an eligible nominee The application could also be denied if the leaseholder is in violation of the regulation or the terms and conditions of the lease.

Q. Is a family transfer of a legacy lease subject to TLE selection?

A. No. Legacy lease transfers to family members are not subject to TLE selection.

Valuing Improvements

Q. What are my options when dealing with improvements I made on my lease?

A. Currently, outgoing leaseholders have three options regarding improvement value when leases are surrendered or expire. These are:

 forego improvement value and surrender them to the Crown. At auction, the improvements will be considered to have zero value.

 retain any removable improvements such as fences, watering devices, or other equipment or items for sale or other repurposing.

 seek compensation from, or sell improvements to, the next leaseholder by obtaining an appraisal of the improvements

There are no proposed changes to these current options.

Q. Can I sell my improvements to the next leaseholder?

A. Outgoing leaseholders can be compensated for investments made on eligible improvements. The amendment proposes a new process for this.

Outgoing leaseholders seeking compensation for improvements must have the improvements valued by a qualified appraiser at their own cost. Manitoba Agriculture would post the improvement value determined by the appraiser with the parcel at auction. This new approach reduces ambiguity around improvement values, and allows interested leaseholders to make an informed bid. Successful bidders would be required to submit the value of the improvements to the outgoing leaseholder

Situations exist where outgoing leaseholders must forego improvement value. These include land selected for TLE, and land not allocated by auction within two years of expiry or surrender.

Q. Do I have the option to set my own value of improvements if I disagree with the appraisal?

A. No. The proposed amendment requires Manitoba Agriculture to post the total value of improvements as determined by the appraiser.

Q. How can I be sure I will be paid for my improvements?

A. The proposed amendment includes provisions requiring the outgoing leaseholder to pay the incoming leaseholder. The former holder is entitled to compensation from the new holder for any remaining improvements made by the former holder to the leased or permitted lands if the former holder meets the requirements set out in the regulation. If all requirements in the Agricultural Crown Lands Leases and Permits Regulation have been met and the improvements remain on the leased or permitted lands, the new holder must pay the appraised value of the improvements to the former holder within 60 days after the auction.

Agricultural Crown Lands Leases and Permits Regulation

Proposed Amendments

June 2023

A message from the Minister

Dear Manitobans,

I am pleased to introduce proposed changes to further enhance the Agricultural Crown Lands Program through amendments to the Agricultural Crown Lands Leases and Permits Regulation, a regulation under The Crown Lands Act. Agricultural Crown lands (ACL) are an important public asset economically, environmentally, and socially. Agriculturally, these Crown lands are essential to supporting and growing the livestock industry in Manitoba. In addition, many Indigenous peoples utilize these lands for traditional purposes and to exercise Treaty and Aboriginal rights.

Through these regulatory changes Manitoba aims to build productivity investments by balancing the requests from existing and potential new ACL leaseholders, Indigenous peoples and communities. Since 2018, Manitoba Agriculture has sought and reviewed feedback from forage leaseholders around rent costs, lease terms and conditions, land productivity, and programs and services. Furthermore, various Indigenous communities, organizations, and bands have increased participation in the use and management of agricultural Crown lands.

The proposed amendments to the regulation will update the Agricultural Crown Land Program by:

- Determining forage capacity at the outset of a forage lease or renewable permit (evaluating animal unit months or AUMs)

- Expanding eligibility to hold an agricultural Crown lands lease or permit to include Indigenous organizations

- Allowing terms of new leases (post October 2019) to be extended by five years to a maximum of 20 years where a forage management plan has been implemented and good land management has been demonstrated

- Allowing new leaseholders (post October 2019) to transfer the remainder of their lease term to another eligible party

- Allowing leaseholders to nominate the next leaseholder for leases issued before October 2019, provided the lease is not selected through Treaty Land Entitlement (TLE)

- Valuing improvements at the end of a lease through a third party appraiser

We want to make sure we are considering stakeholder perspectives for the management of provincial agricultural Crown land as a public asset. We encourage you to share your ideas as we continue to implement changes to enhance and modernize the Agricultural Crown Lands Program.

Sincerely,

Honourable Derek Johnson Minister, Manitoba Agriculture

The Agricultural Crown Lands Program

Manitoba’s Agricultural Crown Lands Program administers agricultural Crown lands to support the sustainable expansion of the livestock herd, contribute to ecological goods and services, and provide mitigation and adaptation to climate change, while recognizing Indigenous use for traditional purposes and to exercise Treaty and Aboriginal rights.

Provincial Crown lands are lands that are vested with the Manitoba government. The Manitoba government uses a planning process to determine how parcels of Crown land may be used. This planning process has identified approximately 1.5 million acres as suitable for agricultural use and is designated as agricultural Crown lands. While important to agriculture, it also supports the ecological and environmental priorities of many Manitobans that enjoy these vast areas and the natural diversity they offer.

The Agricultural Crown Lands Program facilitates the use of provincial land for agriculture, in the form of cropping leases, forage leases and hay and grazing permits. Forage leases, held primarily by cattle producers, account for the majority of the Agricultural Crown Lands Program activity.

Since 2017, Manitoba has been committed to modernizing the Agricultural Crown Lands Program. The Agricultural Crown Lands Leases and Permits Regulation (Regulation) was amended in 2017, 2019, 2020, and 2022 including:

- Expanding eligibility to hold a lease or permit to Canadian residents and First Nations bands;

- Shifting from a points system to a tender system and finally to an auction-based system;

- Calculating forage rents using a market-based formula;

- Eliminating the ability of leaseholders to transfer an agricultural Crown lands lease to a third party as part of a farm sale and limiting transfers to immediate family members only;

- Eliminating lease terms and limiting new lease terms to a maximum of 15 years; and

- Enabling a 50 per cent rent reduction as a 2023 adjustment in annual rent or fee.

In October 2022, an EngageMB survey was held to gather views surrounding forage leases under the Agricultural Crown Lands Program and ways to enhance leaseholder investment in agricultural Crown land parcels to improve productivity. Respondents indicated increased need for departmental support, cost-shared programming to improve productivity, longer term lengths, assurances of return on investments and parcel improvements, and an ability to transfer their lease. A summary of the survey can be found at Agricultural Crown Lands Program - Forage Leases | EngageMB.

Determining Land Productivity

A key priority of the Manitoba government is to maximize livestock numbers and improve forage productivity in the ACL Program through the use of well managed native and tame pasture. Proper land management requires a producer to be familiar with the amount of dry matter forage the pasture can produce and the amount of forage required over the grazing season by each animal and the herd as a whole. As such, the proper combination of land, time and number of animals ensures the sustained, long-term productivity of the pasture.

Forage capacity of ACL leases are based on the available animal unit months for each parcel, as determined by the department of Agriculture. The optimum number of animals on the pasture makes efficient use of the forage without waste, but still leaves enough forage to allow quick and complete recovery. In 2019, Manitoba brought in changes to rental rates, including developing a linkage between the rental rate and cattle markets. Through this amendment, Manitoba is proposing changes to determine the forage capacity or the animal unit months of an ACL parcel at the outset of a lease or renewable permit. This is an incentive for leaseholders to increase productivity through management and investment without a corresponding increase in rent; the Animal Unit Month will not change during the lease term.

Current State

The annual rent of fee for an agricultural forage lease or permit is determined by formula.

Annual Rent = A x B x 3.5%, where:

A = is the average price of beef published by Canfax

B = is the forage capacity of the land or number of Animal Unit Months that the land is capable of producing in an average year.

Proposed Enhancement

Forage capacity is the number of Animal Unit Months that the land is capable of producing.

The description of B in the formula is the forage capacity of the land in an average year at the time the lease or permit is issued or renewed. The forage capacity of the land is determined at the time the lease or permit is issued or, in the case of a legacy lease, renewed. The forage capacity of the land established at the outset of the lease will remain in place should a lease qualify for a fiveyear extension.

Animal Unit Month

The amount of forage required by one animal unit (AU) for one month is called an Animal Unit Month (AUM). One animal unit is defined as a 1,000 lb. (450 kg) beef cow with or without a nursing calf with a daily intake requirement of 26 lb. (11.8 kg) of dry matter forage. Therefore, one AUM is equal to 780 lbs (355 kg) of dry matter forage intake (30 days X daily forage requirement).

Example: a parcel capable of producing enough forage for 40 AUMs could sustain 10, 1,000 lb beef cows for 4 months (10 cows x 4 months = 40 AUMs). Generally, cows are larger than this and one cow may account for greater than one AUM, possibly in the 1.3 AUMs per cow range. In this case, the same parcel may only support seven or eight cows for the same period.

More information on stocking rates and AUMs is available at https://www.gov.mb.ca/agriculture/livesto ck/sheep/how-to-determine-stockingrates-for-manitoba-pastures.html.

Expanding Eligibility

Since 2017, Manitoba has increased efforts toward truth and reconciliation and enabled legislation to encourage and allow interested Indigenous groups to hold agricultural Crown lands leases and permits. Regulatory change in 2019 expanded eligibility to First Nation bands to hold a lease or renewable permit for the first time. Additionally, First Nations have received more frequent notices for ACL available for Treaty Land Entitlement selection, as leases are now being circulated prior to reallocation through the auction process. Manitoba is proposing to further expand eligibility for holding an ACL lease or permit to groups representing First Nations, Metis, and other Indigenous communities.

Current State Proposed Enhancement

The following entities are eligible to hold an agricultural lease or permit:

- a Canadian citizen or permanent resident

- a Partnership made up of Canadian citizens or permanent residents

- a First Nations band

- a forage cooperative made up of Canadian citizens or permanent residents

- a Hutterite colony or a corporation owned by a Hutterite colony or similar organization

- a corporation made up of Canadian citizens or permanent residents

The amendment proposes to enhance the eligibility of a band to include any non-profit organization that represent the interests of one or more bands, individuals of Metis decent, or holders of Aboriginal or Treaty rights. This amendment intends to enable participation of not-for-profit partnerships between First Nations, Metis, and other Indigenous organizations in the Agricultural Crown Lands Program and for these partnerships to be eligible to hold an agricultural Crown land lease or permit.

Extending a Lease

Currently, all agricultural Crown land forage leases issued after 2019 have a 15-year term in Manitoba. However, there is a significant discrepancy in the ability to renew leases issued before October 2019, and forage leases issued by auction since October 2019. Manitoba is proposing an amendment that would allow new system leases the option to extend the term of a lease from 15 years to 20 years for leaseholders that practice good land management.

Current State Proposed Enhancement

The Regulation allows for a forage lease issued before October 2019 to be renewed indefinitely with a term of up to 15 years.

Conversely, there is no ability to renew a forage lease issued after October 1, 2019. These leases were initially allocated by public auction, and at the end of the 15-year term, the lease returns to public auction.

Manitoba is proposing to allow a five-year extension on a 15-year lease term for qualifying leases issued after October 2019. Leaseholders that complete and implement a forage management plan for at least the last five years of the 15year lease term, are eligible for a five year extension, thus making the lease term up to 20 years.

A forage management plan outlines practices that support sustainable management of forage leases and improved forage productivity. The plan must be developed and approved by a professional agrologist. Costs associated with plan development would be the responsibility of the leaseholder. These plans are not mandatory, however without one, the lease term cannot exceed 15 years.

Only one extension period is available. At the end of the lease term, the land will be put to auction and reallocated. The outgoing leaseholder is eligible to bid on the lease and, if successful, would be allocated a new 15-year lease with a possible five-year extension.

There are no proposed changes to the ability to renew a forage lease issued before October 2019 (legacy lease).

Transferring a Lease

Prior to 2019, leaseholders had the ability to transfer an ACL lease or renewable permit to any eligible third party as part of a farm sale. In 2019, amendments limited transfers to immediate family members only. Manitoba is proposing an amendment that would allow new system leases to be transferred to new leaseholders within the 15-year term.

Current State Proposed Enhancement

Leases or permits issued under the Regulation may be transferred to family members or corporate entities or partnerships controlled by family members, only.

In instances where a leaseholder has an ownership interest in a partnership or corporation, the leaseholder can transfer their ownership interest to another ownership interest (non-family) in the same partnership or corporation.

For either purposes, a share transfer or transfer of a partnership interest are deemed to be a transfer of the lease.

The transfer provision will no longer be limited to family. The proposed amendment will allow unlimited transfers of new system forage lease or renewable permits to any eligible lessee for the remainder of the lease term.

The eligible person or entity taking over a new system lease, or to whom it is transferred, is not issued a new 15-year lease. The new leaseholder will be limited to the remainder of the original lease period. A five-year extension is available if a forage management plan was completed and followed by the previous leaseholder, the succeeding leaseholder, or a combination of the two.

Legacy leases issued before October 1, 2019 can only be transferred within families, or to a partnership or corporation where each owner of the partnership or corporation is a family member.

Since 2019, there is a significant distinction in the term lengths and ability to renew different types of leases.

Legacy lease – a lease originally issued prior to October 2019. This type of lease is in place until age 65, at which time it has an unlimited ability for renewal. At age 65, the leaseholder can apply to renew their lease for a further 15 years.

New system lease - forage leases issued after October 2019. This type of lease has been allocated through auction and cannot be renewed.

Nominating a New Leaseholder

Prior to 2019, a ‘unit transfer’ of leases allowed leaseholders to transfer leases together with deeded farmland, thereby increasing the value of the total operation. However, this reduced access to ACL by new/young farmers trying to establish and grow farming operations. In 2019, in an effort to increase lands available to young producers, the ‘unit transfer’ was removed. Since then, producers and ranchers have indicated that losing the unit transfer provision severely reduced the sale value of their operations, and requested it be re-instated. Manitoba needs to balance this with the goals of ensuring access to land for young producers, while respecting and adhering to agreements made by government to Treaty Land Entitlement (TLE), First Nations and Indigenous peoples. Manitoba proposes allowing legacy leaseholders to nominate the next leaseholder, provided the land is not selected through the TLE process, and does not impact Aboriginal and Treaty rights.

Current State Proposed Enhancement

The Regulation allows for a forage lease issued before October 2019 (legacy lease) to be renewed indefinitely, with a term of up to 15 years.

Legacy leases are transferrable to family members, or to partnerships or corporations owned by family members. In these cases, the lease retains all of the legacy lease features including renewable 15-year lease terms at age 65, and the ability to transfer to a family member, or to partnerships or corporations owned by family members.

The only mechanism for a non-family member to access ACL parcels currently held by a legacy lease holder, is for the legacy lease to be surrendered or cancelled, and have the

For forage leases issued prior to October 2019, leaseholders can continue the practice of transferring a legacy lease to a family member, who would retain all legacy lease provisions including renewable 15year terms at age 65.

A new provision will allow legacy leaseholders to nominate the next leaseholder. This provision could be used to link land or farm sales to Crown land leases integral to the farm’s operation; however a land sale will not be required. The nominee can be anyone eligible to hold a lease, and must be in good standing. To be eligible to apply for the nomination process, the leaseholder must not have contravened the terms of the lease at any time, including paying late, subletting, or having allowed the condition of the forage to decline. The legacy lease would be terminated and the new leaseholder would be issued a new system lease with a term up to 15 years. However, the land must go through a review process to ensure it is eligible for this type of transfer.

Under the Treaty Land Entitlement (TLE) Framework Agreement, government has a legal duty to offer unencumbered Crown lands for TLE selection. Under the agreement, any TLE First Nations must be notified of available land in their identified Community Interest Zone. The TLE First Nation is given time to assess and select Crown lands for incorporation into their Reserve holdings if desired. Allowing these legacy leases to be transferred to an eligible third party, without first offering the lands to TLE First Nations for selection is non-compliant with our Treaty obligations. In addition, impacted First Nations and Indigenous communities also need to be provided the opportunity to identify if the new lease will impact Aboriginal and Treaty rights.

new lease holder acquire the lease through auction.

A process to transfer unselected agricultural Crown lands that is compliant with Treaty obligations and Aboriginal and Treaty rights has been developed for the new nomination process. Under the proposed amendment, legacy leaseholders can apply for the ability to nominate the next leaseholder for a newsystem lease. Once a legacy leaseholder makes an application to nominate the next leaseholder, government circulates the parcel to impacted communities and follows the TLE Framework Agreement process to notify eligible First Nations that Crown land is available for selection or allocation. The eligible TLE First Nation has up to six months in total to select the land for TLE, or not. If the land is selected, the lease is immediately terminated and the land begins the process of reverting to Reserve status. If the lands are not selected, and no impacts to Aboriginal and Treaty rights are indicated, the department can provide a nomination certificate that provides the leaseholder with two years to nominate the next leaseholder.

For clarity, outgoing leaseholders that apply for a nomination certificate cannot withdraw their application once the TLE process is initiated. Outgoing leaseholders and prospective buyers involved in land transactions linked to ACL and possible nominees should fully understand potential outcomes of the TLE process, and the impact they may have on prospective transactions.

Figure 1: Proposed options for transferring or nominating the next leaseholder of a legacy lease or lease issued before October 2019.

Figure 2: First Nations Reserves in Agro-Manitoba and current Community Interest Zones reserved on behalf of 21 Entitlement First Nations as per the Treaty Land Entitlement Framework Agreement and the Notice Area for the Peguis Treaty Entitlement Agreement.

Source:

https://geoportal.gov.mb.ca/datasets/manitoba::co mmunity-interest-zones-inmanitoba/explore?location=54.359521%2C94.027567%2C5.48

Valuing Improvements

During the period a lease is in effect, lessees often construct improvements on the land, such as fences, shelters for cattle, constructed water sources, troughs, etc. This creates an ‘unknown’ for bidders at the lease auction – a winning bidder may be required to compensate an outgoing leaseholder without knowing in advance what the amount of compensation will be. The current negotiation and arbitration process for value disputes has resulted in a number of complaints to the department of Agriculture. Manitoba is proposing an amendment that provides an assessed value at the time of auction to better inform the potential bidders.

Current State Proposed Enhancement

Outgoing leaseholders can be compensated by the incoming leaseholder for improvements made to the agricultural Crown lands provided the land is released within two years. The outgoing leaseholder can also remove chattel improvements, such as fences, or can forego compensation for improvements.

Under the current regulation, the process for determining this value is negotiated between the incoming and outgoing leaseholders. If they fail to agree on an amount, The Arbitration Act guides compensation.

To encourage investment and compensate those leaseholders for making productivity improvements like cross-fencing, water supply development, etc., the ability for the outgoing leaseholder to be compensated for any identified improvements by the incoming leaseholder will continue. However, the proposed method to determine the value of the improvements will change.

In the last year of their lease, outgoing leaseholders that choose to be compensated for improvements must obtain an appraisal, from an accredited appraiser, which indicates the value of the eligible improvements. The cost of the appraisal is their responsibility. The outgoing leaseholder cannot appeal the appraisal but can obtain a second appraisal if they disagree with the initial valuation.

The appraised value is posted at the time of the auction. If the lease is reallocated within two years of expiry, the successful bidder must pay the outgoing leaseholder the posted amount. If reallocation takes more than two years, compensation from the incoming leaseholder is not required and there is no compensation for improvements to the outgoing leaseholder.

Investing in Productivity

The proposed Agricultural Crown Lands Leases and Permits Regulation amendment also formalizes Manitoba’s commitment to provide a temporary rent reduction. In the fall of 2022, Manitoba committed to implementing a temporary rent reduction over three years for forage lease and renewable hay and grazing permits on agricultural Crown lands. Current leaseholders have already received the benefit of the first year’s rent reduction of 50 per cent, with future reductions formalized at 33 per cent in 2024 and 15 per cent in 2025. Forage leaseholders do not need to apply for the support, the reduction is automatically applied to each year’s bill.

In addition to regulatory changes to support the Agricultural Crown Lands Program, Manitoba Agriculture is exploring opportunities to further enhance ACL productivity. As such, the department is considering increasing extension services to forage leaseholders, and offering cost-shared programs aimed at improving agricultural Crown land productivity. For more information, please see https://www.gov.mb.ca/agriculture/landmanagement/crown-land.

Engagement and Consultation

We want to hear from you. Please send us your thoughts and suggestions to help refine Manitoba’s proposed Agricultural Crown Lands Leases and Permits Regulation amendment under The Crown Lands Act. Comments can be provided through the Manitoba Regulatory Consultation Portal at http://reg.gov.mb.ca/home.

Proposed Agricultural Crown Lands (ACL) Lease Transfer

Process For Legacy Leases and 15-Year New-System Leases

Current ACL Lease System: Limited Transfer Rights

LEGACY LEASES (ISSUED PRIOR TO 2019)

NEW SYSTEM LEASES (ISSUED AFTER 2019)

Proposed ACL Lease System: Expanded Transfer Rights

“Legacy Lease” Transfer Process with TLE Notification

NOTE: No compensation to outgoing leaseholder for leasehold improvements! Notification letter to indicate next availability of land is 15 years

Indefinite renewals

Farm makes decision to exit

Farm makes application to request “right to nominate next leaseholder”

Land parcel is located within a TLE CIZ

AGR notifies eligible FNs of available land for selection

FN indicates interest

60 days

TLE assessment process begins

60 days

FN selects land

120 days

ACL lease is terminated. Addition-toReserve process begins.

120 days

AGR provides certification for leaseholder to nominate the next leaseholder for a new-system lease within 2 years