MBP E-Newsletter: July 14/2023

REMINDER: 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 the lease 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 Regulation - Proposed Amendments

Send 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/.

Additional background information is also included in this edition of the e-newsletter. See pages 13-34.

A quick reminder that Early Bird Pricing ends

July 15! Be sure to register to take advantage of the Early Bird rate

Participate in hands-on demonstrations with stock dogs and cattle in the rodeo arena bowl, and show off your skills in the CBIC Boot Camp. Grow your network with multiple opportunities to connect with over 50 organizations on the tradeshow floor. To close out the conference, join your colleagues and cheer for your favorites at the exclusive Bullfighters Only Showdown.

The Canadian Beef Industry Conference (CBIC) is the meeting place for the Canadian beef industry. It is a collaboration of the Beef Cattle Research Council, Canada Beef, Canadian Beef Breeds Council, Canadian Cattle Association and National Cattle Feeders Association. The fourday event will bring together over 700 attendees that include producers, government agencies and industry leaders to network, share ideas and grow their operations. Make CBIC part of your strategy for increasing business and connecting to the national beef industry leaders.

This year in Calgary there will be keynote speakers such as Cherie Copithorne-Barnes with Brian Burke, NHL Leader, Community Activist and Philanthropist and Diana Rodgers of Global Food Justice Alliance. Breakout sessions focusing on sustainability, marketing and biosecurity will feature producers from across Canada sharing their experiences.

Hear from producers on what they have "butchered" and how they moved on from their mistakes, and learn about new product innovation on the tradeshow floor.

Be sure to visit the website for hotel, venue and registration information.

If your organization would like to support the Canadian Beef industry, or be a part of the tradeshow, please reach out to Kristine Langlois using this email address: kristine@canadianbeefindustryconference.ca

Mark your calendar for keynote speaker Diana Rodgers, presented by Canadian Cattle Foundation. Across the world, experts are trying to identify the best diet to feed a growing population and a warming planet. Unfortunately, livestock is being unfairly vilified as unhealthy, unsustainable, and unnecessary. But is this anti-meat narrative evidence-based? Diana makes the case that animal-sourced foods are critical for human health and that well-managed grazing animals can improve ecosystem function.

Beef industry receives funding to support its sustainable development

(July 12, 2023 Agriculture and Agri-Food Canada News Release) At the Calgary Stampede, Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, announced an investment of more than $12 million on behalf of the Honourable Marie-Claude Bibeau to the Canadian Cattle Association under the AgriScience Program – Clusters Component. The Beef Cattle Research Council, a division of the Canadian Cattle Association, will administer the Beef and Forage Cluster.

The investment aims to drive the growth of Canada’s beef industry through research, innovation and technology transfer, while improving their environmental footprint.

The 23 projects to be funded focus on three AgriScience program priorities: Climate Change and Environment, Economic Growth and Development, and Sector Resilience and Societal Challenges. Research activities include reducing methane emissions through feeding strategies, breeding forages that are more productive and profitable, and developing technologies for faster response to emerging diseases.

The goals of these funded activities contribute to the Government of Canada’s climate change mitigation and industry resilience priorities, while supporting the Government’s GHG reduction targets.

Quotes

"Across the country, beef farmers and ranchers are incorporating new methods into their dayto-day routines to meet the global demand for Canadian beef. Today’s investment will help the sector continue to deliver results and maintain their solid reputation, while continuing to contribute to our environmental goals.”

- The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

“The Government of Canada recognizes the importance of Canadian beef. Today’s announcement will contribute to the continued success of the industry, while keeping it strong and resilient. The results from these innovation, research and technology activities will transform into real results on farms.”

- Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food

“Beef producers across Canada continually strive to maintain and improve our animal health and welfare practices, food safety standards and environmental stewardship. We are eager to utilize the outcomes of Canada’s Beef and Forage AgriScience Cluster to continue to responsibly deliver superior products and preserve land and livelihood that we pass on to the next generation.”

- Craig Lehr, Chair of The Beef Cattle Research Council and Alberta beef producer

Quick facts

• The beef and cattle industry is one of the largest in Canadian agriculture, with 11 million cattle and calves on 72,275 farms and ranches on January 1, 2022.

• Canada is one of the largest exporters of livestock and red meat in the world, exporting approximately 50% of Canadian beef and cattle production each year.

• In 2022, cattle and calf exports were valued at $1.4 billion, and beef exports were valued at $4.68 billion.

• The industry contributes approximately $21.8 billion annually to Canada’s GDP while supporting 347,000 jobs directly and indirectly. continued on page 4

Beef industry receives funding to support its sustainable development

• According to the Beef Cattle Research Council (BCRC) the GHG emissions of Canadian beef production have a total footprint of 11.04 kg CO2 equivalent, representing 2.4% of Canada’s overall emissions, less than half the world’s average.

• Also, according to the BCRC, the land used for beef production and managed by Canadian farmers and ranchers helps to sequester over 1.5 billion tonnes of carbon in Canada.

• The AgriScience Program, under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), aims to accelerate innovation by providing funding and support for pre-commercial science activities as well as research that benefits the agriculture and agri-food industry and Canadians.

o The Clusters Component, under the AgriScience Program, supports projects intended to mobilize industry, government and academia through partnerships, and addresses prioritized national themes and issues of general interest.

• Projects and final funding are subject to negotiation of a Collaborative Research and Development Agreement.

• The Canadian Cattle Association is a national federation funded by cattle producers and led by a producer-elected board of directors, which works to improve market access and address issues that concern Canada’s beef producers.

• The Beef Cattle Research Council, an operating division of the Canadian Cattle Association, determines research and development priorities for the beef cattle

industry and administrates the research funding allocation of the producer-paid Canadian Beef Cattle Check-Off to fund beef, cattle and forage research and technology transfer.

Backgrounder

The Canadian Cattle Association (CCA) received over $12 million through the Sustainable Canadian Agriculture Partnership (Sustainable CAP), under the AgriScience Program – Clusters Component. The Beef Cattle Research Council, a division of the CCA, will administer the Beef and Forage Cluster.

The five-year, $3.5 billion Sustainable CAP includes six federally funded national programs to help drive growth and sustainability in the Canadian agriculture and agri-food sector. The Sustainable CAP includes the AgriScience Program, which includes $324.77 million over 5 years.

Science continues to drive innovations that help Canadian food and agricultural producers to better manage risks (including from climate change), increase their competitiveness, protect the environment and develop new products and markets. The objective of the AgriScience Program is to accelerate the pace of innovation by funding and supporting pre-commercialization science and research for the benefit of the agriculture and agrifood sector, and Canadians. The program has two components, Clusters and Projects.

Funding was provided to CCA through the Clusters Component, which supports projects intended to mobilize industry, government and academia through partnerships, and address priority national themes and horizontal issues.

Over the next five years, industry and Government will invest almost $22 million in the CCA, including a federal contribution of over $12 million to support three key priority areas: Climate Change and the Environment, Economic Growth and Development, and Sector Resilience and Societal Changes.

$12 Million Federal Investment to Drive Environmental, Economic and Social Sustainability in Canada's Beef Sector

it strong and resilient for the future. The results from these innovation, research and technology activities will transform into real results on farms.”

(lto r) Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, and BCRC Chair Craig Lehr announce new funding (Photo credit: BCRC)

(July 12, 2023 BCRC News Release) The Beef Cattle Research Council (BCRC) is welcoming more than $12 million in funding from the Government of Canada for Canada’s Beef and Forage AgriScience Cluster under the Sustainable Canadian Agricultural Partnership –AgriScience Program. Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food (pictured above left), made the funding announcement today while attending the Calgary Stampede.

The AgriScience Cluster funding will bolster the Canadian beef sector’s environmental and economic sustainability and resilience as the sector adapts to changing climates and evolving marketplaces. This investment will support sector goals to meet the Government of Canada’s greenhouse gas reduction targets by reducing emission intensity, sequestering additional carbon and maintaining native grasslands in the care of Canadian beef producers.

“The Government of Canada recognizes the importance of Canadian beef,” said Parliamentary Secretary Drouin. “Today’s announcement will help contribute to the continued success of the industry, while keeping

Alberta beef producer and BCRC Chair Craig Lehr said the results from this AgriScience Cluster will benefit farmers, ranchers, processors, retailers and consumers, as well as the broader Canadian population.

“The demand for beef is expected to grow by 10 percent in the next 10 years and, with one of the lowest environmental footprints for beef production in the world, Canadian producers are well-positioned to responsibly meet growing global beef demand,” Lehr said. “Canada’s Beef and Forage AgriScience Cluster drives research and technology transfer that supports producer profitability with on-farm improvements in things like animal health and performance, feed production and efficient feed use so we can continue to supply high-quality, nutrient-dense protein.”

Canada’s beef industry will contribute more than $9.6 million, primarily through the research allocation of the Canadian Beef Cattle Check-Off, bringing the total AgriScience Cluster investment to more than $21.7 million. BCRC Vice Chair Ron Stevenson, a beef producer from Ontario, said this AgriScience Cluster builds on the success of three previous Beef Science Clusters.

“The Science Clusters recognize the beef sector’s determined leadership and encourage producers in their pursuits of innovation and ingenuity,” Stevenson said. “The Cluster will help the Canadian beef industry realize its tremendous opportunity to increase production and exports while ensuring the maintenance of continued on page 6

$12 Million Federal Investment to Drive Environmental, Economic and Social Sustainability in Canada's Beef Sector

soil health, water quality, air quality and biodiversity.”

Twenty-three projects will be funded between April 1, 2023, and March 31, 2028, under three themes: climate change and environment; economic growth and development, and sector resilience and societal challenge. The balanced research portfolio, led by respected scientists through collaborative arrangements between academia, government and industry, will work to achieve objectives with the greatest potential to advance the Canadian beef sector. Some

projects will explore improved diagnostic tests and vaccines to manage cattle diseases, new forages that can thrive across Canada and food safety technologies in beef processing facilities that reduce water and energy use, while others will develop practical, science-based resources and economic decision-making tools for the industry.

Learn more at www.BeefResearch.ca

Opportunity to Participate in New Manitoba By-

Product Directory

Manitoba Agriculture is developing its first ByProduct Directory, a free business-to-business online resource to identify and promote Manitoba by-products. With increased interest in reusing and upcycling local by-products, this Directory will provide exposure to common byproducts created through agri-food production and processing across Manitoba’s agri-food

industry. This first-of-its-kind, searchable byproducts directory will list Manitoba produced by-products online to potential local, domestic and/or international buyers, and will be published on the Manitoba Agriculture website for industry use. Contribute to a circular economy and showcase your by-products by registering here before August 11th, 2023.

Manitoba Government Invests an Estimated $40 Million in Rivers Dam to Manage Future Climate Risk

(July 14, 2023 Province of Manitoba News Release) The Manitoba government is announcing that permanent rehabilitation work of the Rivers Dam on Lake Wahtopanah in Rivers Provincial Park, has started, Transportation and Infrastructure Minister Doyle Piwniuk announced.

“Our government is pleased to announce the start of construction on the Rivers Dam to ensure that the dam can safely pass future flood events,” said Piwniuk. “This project is moving forward using feedback provided by local stakeholders, who provided valuable input through the public engagement process and have given positive feedback on the final design.”

The heavy rainfall event in the summer of 2020caused record flooding on the Little Saskatchewan River, impacting the dam at Rivers. During the rainfall, the water level at the dam reached record-high levels, affecting surrounding communities including Brandon, Riverdale and Whitehead. Approximately 83 people had to evacuate from their homes in the Rivers Dam flood zone area. Interim repairs to the Rivers Dam spillway were completed in February 2021, but a more permanent solution was needed to improve the dam and ensure the safety of the communities, said Piwniuk.

The start of permanent upgrades on Rivers Dam is beginning, which includes rehabilitation work to the low flow conduit estimated at $5.5 million, with construction expected to be completed this fall.

The larger work for the project includes the rehabilitation of the concrete spillway and embankment. This work is scheduled to be

tendered in the spring 2024, with construction starting in summer 2024, and is anticipated to be complete in fall 2025. Work on this phase is estimated to cost about $34 million.

The Rivers Dam controls water levels on Lake Wahtopanah in Rivers Provincial Park, where numerous residences are located. The rehabilitated dam will be capable of safely passing a flood event well in excess of the one in a 1,000-year event, the minister noted.

This investment builds on other significant, critical climate resiliency projects as part of the Manitoba government’s capital investment strategy including:

• raising the northbound lames of Provincial Trunk Highway 75 by up to 1.2 metres and Provincial Road 246 upgraded to protect the major trade route from a 2009 level flood event;

• ongoing rehabilitation and upgrades to provincial dams, dikes and pump stations at key locations throughout Manitoba’s major basins;

• ongoing investment in the Portage Diversion including repairs to the outlet structure and upgrades to the control structure;

• the Lake Manitoba and Lake St. Martin Outlet Channels project; and

• the Rapid City Dam project.

For more information on Manitoba’s water management and structures, including information on Manitoba’s lakes and river conditions, current projects and major flood control infrastructure, visit www.gov.mb.ca/mit/wms/index.html

Manitoba Government Moving Ahead With Plans to Twin Stretch of Provincial Trunk Highway 3

(July 13, 2023 Province of Manitoba News Release)

The Manitoba government has started the functional design study to twin a section of Provincial Trunk Highway (PTH) 3 beginning 1.6 kilometres east of PTH 100 to the city of Winnipeg limit, Transportation and Infrastructure Minister Doyle Piwniuk announced here today.

“Twinning this busy section of the highway will offer an improved level of service to commuters, travellers and commercial vehicles,” said Piwniuk. “We remain firmly committed to critical infrastructure investments that deliver enhanced safety, ease of travel, and support the movement of goods and services across Manitoba.”

The Rural Municipality of Macdonald has seen significant development in recent years, contributing to higher traffic volumes between the rural municipality and Winnipeg. Reconstruction and twinning is necessary to account for increased volume, enable continued development and reduce traffic delays along a key economic route in southwest Manitoba.

The scope of the project includes a functional design study, land acquisition and utility relocation as required, intersection analysis and the reconstruction of PTH 3 to a four-lane divided highway from a two-lane undivided highway. Eventual construction work will include grading, placement of granular material and bituminous pavement, and drainage design.

To support the functional design study, a public and stakeholder consultation program was developed and is expected to run from February 2023 to May 2024 and include three phases of engagement, as follows:

• phase one: stakeholder identification –completed in May 2023;

• phase two: present design alternatives –planned for October 2023; and

• phase three and EngageMB virtual event to present preferred design alternatives – planned for May 2024.

“The announcement of these significant upgrades to this critical infrastructure is welcome news for our community residents and businesses. The added public safety they will experience in their daily commutes is immeasurable,” said Reeve Brad Erb, RM of Macdonald. “This investment as well will result in great economic benefit to our community and the region in general.”

The Manitoba government has also started a refined design of the new diamond interchange at PTH 3 (McGillivray Boulevard) and PTH 100 to replace the existing at-grade signalized intersection. This diamond interchange project was included in the 2020 South Perimeter Highway Design Study and is part of the Winnipeg One Million Perimeter Freeway Initiative.

As Winnipeg approaches a population of one million, the surrounding area is expected to become further developed and will see increased traffic at this intersection. This project aligns with the vision for a freeway that supports Manitoba as an international trade hub, providing increased safety and level of service improvements for all motorists.

The twinning and interchange projects support the 2023 Multi-year Infrastructure Investment Strategy, which outlines over $4.1 billion in strategic investment in roads, highways, bridges, continued on page 9

Manitoba Government Moving Ahead With Plans to Twin Stretch of Provincial Trunk Highway 3

airports and flood protection over the next five years, and confirms the Manitoba government’s commitment to building the economy and investing in the future, the minister noted.

For more information on the PTH 3 twinning project, visit www.gov.mb.ca/mit/projects_management/ind ex.html

For more information on the multi-year strategy, visit https://gov.mb.ca/mit/myhis/index.html.

For more details regarding the South Perimeter Highway projects, visit https://gov.mb.ca/mit/hpd/pth100/index.h tml.

Construction Begins on Perimeter Highway between McGillivray Boulevard and Wilkes Avenue

(July 14, 2023 Province of Manitoba News Release) Manitoba Transportation and Infrastructure reports resurfacing work on the Perimeter Highway northbound between McGillivray Boulevard and Wilkes Avenue, including resurfacing work on the interchange entrance and exit ramps to Wilkes Avenue, will begin July 16.

A single-lane closure, speed reduction and flag people will be in place. Motorists are reminded to adhere to construction signage and use caution when travelling in the area.

Motorists should consider using alternate routes, either Portage Avenue or Roblin Boulevard, to access Wilkes Avenue from the

Perimeter Highway, as access to Wilkes Avenue will be limited.

Construction will take place from 6 p.m. to 5 a.m., but lane closures will remain in place during the day. The project is expected to be completed in August.

Manitoba Transportation and Infrastructure will update impacts to traffic through the Manitoba 511 information system at www.manitoba511.ca

For more information on the One Million Perimeter Freeway Initiative, visit www.gov.mb.ca/mit/hpd/pth100/index.ht ml

Joint Statement by Ministers O’Regan and Alghabra re: West Coast Port Strike

(July 13, 2023 Employment and Social Development Canada News Release) Today, the Honourable Seamus O’Regan Jr., Minister of Labour, and the Honourable Omar Alghabra, Minister of Transport, issued the following statement regarding the collective bargaining negotiations between the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Canada:

“At 10:20 PDT, Minister O’Regan received notice that both the BCMEA and the ILWU have accepted the Terms of Settlement from federal mediators. The parties have reached a tentative agreement. The parties are finalizing details for the resumption of work at the ports.

We thank the Union and the Employer for their commitment to the collective bargaining process, and federal mediators for their instrumental role in supporting the parties in their negotiations and proposing the successful settlement.

The scale of this disruption has been significant. The extent of it has shown just how important the relationship between industry and labour is to our national interest. Our supply chains and our economy depend on it. We do not want to be back here again. Deals like this, made between parties at the collective bargaining table, are the best way to prevent that. They are the best way to preserve the long-term stability of Canada’s economy. But we do not want to be back here again.”

Manitoba Government Invests more than $200 Million in Rural Highway Projects in Western Manitoba

(July 11, 2023 Province of Manitoba News Release) Highways in western Manitoba, including Provincial Trunk Highways (PTH) 2, 3, 10 and 23, will undergo major improvements over the summer months to support traffic needs in the region, Transportation and Infrastructure Minister Doyle Piwniuk announced here today.

“Manitoba is a thriving hub of business and tourism, and our government is committed to ensuring our roadways can support this work and get visitors and equipment where they need to be safely,” said Piwniuk. “These major upgrades to western Manitoba’s infrastructure support our five-year infrastructure investment strategy and represent government’s commitment to building our economy and investing in Manitoba’s future.”

Planned work as part of the $201.4-million investment includes:

• PTH 2 will receive an estimated $26.5 million total investment for 25.5 kilometres of surface rehabilitation from St. Claude to Elm Creek, which is expected to be completed by fall 2024.

• PTH 3 will receive an estimated $90.1 million total investment through three projects:

• surface reconstruction from north junction PTH 3A to north junction PTH 34 for an estimated investment of $19.7 million;

• surface rehabilitation from the Saskatchewan boundary to south junction PTH 83 for an estimated investment of $16.3 million; and

• various surface reconstruction, rehabilitation and preservation projects

along PTH 3 for an estimated investment of $54.1 million.

• PTH 10 to Clear Lake will receive a total investment of $27.3 million in surface reconstruction and restoration upgrades on over 43 kilometres in two separate projects:

• 1.2 kilometres north of the PTH 16 junction to 11.6 kilometres north of the PTH 16 junction for an estimated investment of nearly $17.7 million; and

• 11.6 kilometres north of PTH 16 to 2.6 kilometres north of Provincial Road (PR) 354 for an estimated total investment of $9.6 million.

• PTH 23 will receive an estimated $57.5 million total investment in surface rehabilitation and reconstruction through the following projects:

• PTH 5 to PTH 34 for an estimated investment of over $37 million; and

• PR 336 to PR 422 for an estimated investment of $20.5 million.

Projects are in various stages of design and planning, with the majority of surface upgrades to begin this spring and be completed by the end of summer, weather permitting, the minister added.

“This announcement by the Manitoba government is great news for the province. This commitment to providing a $201.4-million investment into our transportation infrastructure will make our transportation routes safer for residents, but also increase the access for industry, which will provide opportunities for economic growth and

continued on page 12

Manitoba Government Invests more than $200 Million in Rural Highway Projects in Western Manitoba

continue to provide employment opportunities to the construction industry,” Shawn Wood, executive director, Construction Association of Rural Manitoba.

The upgrades support the 2023 Multi-year Infrastructure Investment Strategy, the minister noted, which outlines over $4.1 billion in strategic investment in roads, highways, bridges, airports and flood protection over the next five years.

“Our trade and commerce routes are vitally important to Manitoba’s economy, allowing local businesses and producers to receive

supplies and then move their goods to market in a seamless, efficient way,” said Chris Lorenc, president and CEO, Manitoba Heavy Construction Association. “These investments will support that necessary activity in western Manitoba, home to some of Canada’s richest agricultural land.”

For more information on the Multi-year Infrastructure Investment Strategy, visit https://www.gov.mb.ca/mit/myhis/index.html. An interactive projects map, which provides updates and further information on scheduled projects, is available at https://www.gov.mb.ca/mit/mipmap/map.html

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