The Canada Pension Plan Investment Board (CPPIB) is concerned about the Saskatchewan government’s decision to temporarily prohibit certain institutional investors from purchasing farmland in the province.
The Government of Saskatchewan will hold further consultations and undertake a review of farmland ownership rules under The Saskatchewan Farm Security Act. While the review of the act is underway, regulations will be put in place to prohibit certain organizations, like pension plans and other institutional investors, from purchasing farmland.
Read: CPPIB buys the farm
“Saskatchewan farmland is a strategic asset that should be owned by Canadians for the benefit of Canadians,” says Agriculture Minister Lyle Stewart. “Our goal is not to limit investment, but to ensure the long-term success of Saskatchewan’s agriculture industry and economy.”
Stewart says the original intent of the act was to limit ownership of Saskatchewan farmland to Canadian residents and 100% Canadian-owned corporations. However, it did not explicitly define institutional investors such as pension plans, administrators of pension fund assets and trusts.
CPPIB has owned farmland in Saskatchewan for more than a year and intended to make further purchases. It will be assessing the implications of the new restrictions over the coming days.
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