Current leaseholders can buy at 15% off appraised price before end of March, 2016
Saskatchewan’s agriculture minister wants to sell nearly a quarter of a million hectares of Crown-owned farmland.
Lyle Stewart is offering it at sale prices to encourage those who currently lease the land to buy it before the end of March.
The government said it will offer 15 per cent off the appraised value of the land to those who purchase it before March 31, 2016.
That incentive will drop to 10 per cent on April 1, 2016 and five per cent on January 1, 2017.
The government said it expects about 242,000 hectares (600,000 acres) to be sold under this program.
It said only land deemed to have “no public and low environmental benefit” is eligible.
Farmers who want to keep leasing the land can do so, but the government said rent prices are going up by 15 per cent next year and 30 per cent the year after.
Carrot and stick approach
“The incentive is the carrot, but I’m not going to try and put a happy face on rental increases,” Stewart said. “They’re also designed to motivate producers to buy this land.”
Stewart noted Saskatchewan people recently told the government they did not like institutions owning farmland.
He said that should include the government.
Stewart denied the push to divest the land has anything to do with falling oil prices and the government’s need for money. He said selling off Crown-owned farmland has been the Saskatchewan Party’s intention since before it formed the government.
He added that with interest rates low, commodity prices “still reasonable”, and after eight years of prosperity for farmers “it’s the best time to buy.”
“Lending institutions are very keen on financing farmland. They believe it’s a god investment.”
Asked what happens if a lessee can’t buy and can’t afford the higher rent, Stewart responded: “Farming’s a business. And I’m very hopeful that all the lessees can and will purchase the land.”
Source: www.cbc.ca/news