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Farm Ownership Information
Detail
Saskatchewans Farm Ownership legislation reflects the
continuing commitment of the Government of Saskatchewan to ensuring that Saskatchewan farm
land is owned and operated for the benefit of residents of the province.
The
Saskatchewan Farm Security Act regulates the ownership and
operation of farm land by non-residents and entities which are
not 100% Canadian owned.
I. Definitions
- a resident person is an individual who resides in
Canada for at least 183 days in any year or is a citizen of
Canada
- a Canadian-owned entity
is an agricultural corporation or a corporation,
partnership, syndicate, joint venture, co-operative,
association or any similar entity prescribed in the
regulations in which all shares or interests are legally and
beneficially owned, and all memberships held, by resident
persons or other Canadian-owned entities
- an agricultural
corporation must be engaged in the business of farming
with the majority of all voting shares owned by resident
producers
- a land holding
includes most legal interests in agricultural land but
excludes mortgages
- an aggregate land holding
includes all land holdings of a person and of a spouse and
children
- farm land means
land outside of an urban municipality that is used or can be
used for farming, outside the Northern Saskatchewan
Administration District
- farming includes
livestock raising, poultry raising, dairying, tillage of the
soil, beekeeping, fur farming and any other activity
undertaken to produce primary agricultural produce and animals
II. Effect of Act on Non-Residents
and Non-Canadian Entities
A. Limitations on Land Holdings
- Effective March 30, 1974,
non-residents may not have or acquire an aggregate land
holding exceeding 10 acres. Non-Canadian entities are
also limited to 10 acres.
- Non-residents may not acquire
an interest in land by participating in limited partnerships.
B. Time Allowed to Divest in Certain Circumstances
- Non-residents inheriting land from a non-resident person who
(a) was not a resident of
Canada for five consecutive years
or
(b) did not acquire the land while a resident
have five years to reduce their holdings to the allowable
limit.
- A person who was not a resident for five years, has five
years upon leaving Canada to reduce his holding to the allowable limit.
C. Land Holdings Not Affected by the Act
- Lands acquired by designated relatives from someone who has
been a resident of Canada for any five consecutive years, and acquired the land while a
resident.
- Lands held by a non-resident who was a resident of
Canada for any five consecutive years and purchased the land while a
Canadian resident.
- Lands acquired by a non-resident prior to March 31, 1974.
III. Effect of the Act on
Corporations and other Entities
A. Limitations on Land Holdings
- Canadian entities are not
limited in the acquisition of land holdings. Non-Canadian
entities may not acquire an interest in land by
participating in limited partnerships.
- Agricultural corporations with
a majority of voting shares owned by resident persons or
Canadian entities are considered Canadian Entities. Minority
non-resident shareholders, however, will require an
exemption from the Board if their land holdings exceed 10
acres.
B. Time Allowed to Divest in Certain Circumstances
- Non-agricultural corporations inheriting land have five
years to reduce their holding to the allowable limit.
- An agricultural corporation which becomes a non-agricultural
corporation has one year from the date of becoming a non-agricultural corporation to
reduce its aggregate land holding to the allowable limit.
IV. Exemptions
The Farm Land Security Board may,
upon receipt of a written application, grant Exemption to a
non-resident person, or to a Non-Canadian Entity, to acquire or
hold land in excess of that permitted by the Act.
Exemptions are subject to a fee as
indicated in the Application form.
V. General
These definitions and explanations summarize the principal
provisions of The
Saskatchewan Farm Security Act, regulating land ownership as at
January 1, 2003 and are intended for general information only. While care has been taken to ensure the
general accuracy of this summary, it will be necessary in all cases to refer to the Act
and Regulations to determine application in individual cases with certainty.
A copy of the Act and Regulations can be obtained
from:
Office of the Queens Printer, Acts and Publications
1st floor, 1871 Smith Street
Regina, SK S4P 3V7
Telephone: (306) 787-6894
http://www.qp.gov.sk.ca/
For further information contact:
Mark Folk
General
Manager - Farm Land Security Board
Farm Land Security Board
207-3988 Albert Street
Regina, SK S4S 3R1
Phone: (306) 787-5153
mfolk@farmland.gov.sk.ca
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