Sask. NDP wants investment trusts barred from buying farmland

REGINA — The Saskatchewan NDP say investment funds and trusts should not be able to buy and consolidate farmland in the province.

Deputy agriculture critic Trent Wotherspoon asked for a special legislative committee to examine soaring input costs, farmland ownership and specifically Monette Farms, since it is under court protection.

He said if thousands of acres of Monette land come on to the market, farmers need assurances that investment trusts won’t buy it up.

He called on Agriculture Minister David Marit during question period to examine what he called critical agricultural issues, but the minister did not commit. Marit pointed to the formal review of farmland ownership currently underway.

“Nobody wants to see a farmer in financial difficulty,” the minister said May 6.

“That’s an issue that obviously that entity will work through with their financial institution in how they want to work it.”

Wotherspoon said the fact that a massive farm is in creditor protection raises concern for the entire industry.

“We need to urgently act to bring together the agriculture community, producers and their organizations,” he said in asking for the committee.

In an interview, Wotherspoon said the legislative session would soon end and the matter is urgent.

He said the government has allowed large institutional investment trusts to buy land.

He also said was surprised to learn during budget estimate discussion in April that Avenue Living, a Calgary-based trust, has an exemption from the Farm Land Security Board and owns more than 80,000 acres.

Board says keeping eye on other investors

Wotherspoon said he suspects many farmers are like him and thought recent regulatory changes to bar pension plans from buying land also included other institutional investors.

At estimates, board general manager Kim McLean said Avenue Living has an exemption because it had investments before amendments were made in 2016 and 2017, which limited ownership to only family owned trusts.

“That trust is expiring and so there will be no investment trusts that are owning land in the province,” she said.

“Only family, and it’s specified whether it is dad, sister, nieces, etc. They can only have up to 10 individuals in that trust.”

She said Avenue Living applied for an exemption last year, which was denied.

“They are currently owning land under a limited partnership, where it is only Canadians that are allowed to invest in that fund,” McLean said.

Avenue Living promotes the investment benefits of Saskatchewan farmland, and Wotherspoon asked how they can do that if the exemption has been denied.

McLean said that may come up in the review of farmland ownership currently underway.

“That’s certainly something that the board is concerned about. They want to make sure that it is Canadian farmers that own the lot.”

She added there are other investment funds buying land, and the board is watching to ensure they still meet legislated requirements. She could not say how many, who they are or how much land they have.

Wotherspoon said it’s inappropriate for large institutional investment trusts to accumulate large amounts of land because it keeps producers out of the market.

He added producers and legislators should be working together at a critical juncture for the sector.