THURSDAY, SEPTEMBER 6, 2012
VOL. 90 | NO. 36 | $3.75
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
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Are foreign investors eyeing this pie? Strong interest in Sask. farmland | Locals concerned about outside investors, foreign connections SASKATOON NEWSROOM
Saskatchewan farmland continues to be viewed as fertile ground for corporate investors to sink their money. But as the amount of investorowned farmland grows, so do concerns about foreign ownership and loopholes in the province’s farmland ownership regulations. Mark Folk, general manager of the Saskatchewan Farmland Security Board, said concerns about foreign ownership are becoming more common. But so far, nothing suggests that foreign investors are acquiring title to significant amounts of Saskatchewan farmland. Nor is there evidence to suggest that Canadian buyers are purchasing land on behalf of offshore investors. “We’ve heard lots of comments from around the province of foreign money coming in,” said Folk. “We follow up with every land transaction … we verify the owners of the land … and we verify that they are Canadian citizens.” Saskatchewan farmland is generating significant interest from Canadian buyers outside of the province, Folk said. Among those buyers are ChineseCanadian entrepreneurs, many with significant capital assets and business connections overseas. “We have seen lots of purchases from people living in B.C., people living in Toronto, people living in different provinces and we’ve seen lots of purchases made by permanent residents or Canadian citizens that have immigrated from a number of different places, including China,” he said. The influx of investors has brought changes to the province’s land ownership patterns. Farmers are no longer the only
people interested in acquiring farmland. And with recent changes to grain marketing laws, more investors are now creating vertically integrated businesses that secure investment capital, buy farmland, sign production contracts with farmers and export commodities directly to buyers in China, India and other overseas markets. Near Ogema, Sask., about 120 kilometres south of Regina, investment in farmland has been brisk. In the last few years, well-heeled buyers with overseas connections have been scooping up land at two or three times the assessed value.
In many cases, the new buyers come from Calgary, Vancouver, Toronto or other parts of Canada. They have deep pockets but little or no farming experience. Ryan McKerricher, a local farmer and councillor with the Rural Municipality of Key West, said many local residents aren’t sure what to make of the recent buying frenzy. “There’s been a pile of land bought around here, that’s for sure,” he said. “Everybody just says it’s investors buying it … but that’s what scares
people most is that you can’t put a face to them.” According to McKerricher, farmland that was selling for $60,000 a couple of years ago is now selling with minimal effort for $100,000 or more. “If you’re ready to retire and get out of farming, it’s a good thing … because there’s a buyer waiting,” he said. “All you’ve got to do is make a phone call and you know you’re going to be well paid. But if you’re just starting out and trying to buy land, it’s a tough go because … it’s being bought up so fast and it’s (overpriced)…” Richard Linton, a farmer who lives at nearby Pangman, Sask., said some of the
SEE EYEING THE PIE, PAGE 2
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most active buyers in the area are Chinese-Canadian investors who reside in Canada and have Canadian citizenship or permanent resident status. Linton manages land for several landowners, including a ChineseCanadian businessperson who recently bought 27 quarter sections in the area. “We actually farm for him and we farm (for) another Chinese operator, and we farm for (Canadian corporation) MaxCrop, plus we farm for some guys … (with connections in) India,” he said. Linton said he thinks investors are acquiring the land lawfully and are not circumventing farmland ownership regulations. Last week, he was scheduled to meet with another Chinese-Canadian investor who is interested in buying significant quantities of farmland around Ogema. “A lot of these guys are not interested in buying a quarter or two. They want to buy a large operation and as far as I know, their objective is to farm the land themselves,” he said.
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The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publications Mail Agreement No. 40069240; Registration No. 10676
BY BRIAN CROSS