Farmland Ownership Restrictions: Between a Rock and a Hard Place

Bell, Peter N (2014): Farmland Ownership Restrictions: Between a Rock and a Hard Place.

Abstract

This paper explores unintended consequences of policy that restricts land ownership. I describe certain farmland investment funds that are active in Canada, policy in the Province of Saskatchewan that has restricted ownership since 1974, and how the two are related. I argue that global economic conditions from 1974-2002 created pent-up demand for Saskatchewan farmland, which led to growth in farmland investment after the restrictions were relaxed in 2002. I describe how this situation could repeat itself in the future and put policy makers into a tough situation.

• Item Type: MPRA Paper
• Language: English
• Keywords: Farm, Land, Ownership, Policy, Saskatchewan, Canada
• Subjects: A - General Economics and Teaching > A1 - General Economics; F - International Economics > F6 - Economic Impacts of Globalization; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q14 - Agricultural Finance; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment

References

Agcapita Partners LP. (2009). Investor Centre. Retrieved from http://www.farmlandinvestmentpartnership.com/investor-centre

Agcapita Partners LP. (2013). Sasktachewan Land Value Continue Strong. Retrieved from http://www.farmlandinvestmentpartnership.com/media-coverage/1900-saskatchewan-land-value-continues-strong

Assiniboia Capital Corp. (2009). Intro to Assiniboia Farmland. Retrieved from http://www.assiniboiacapital.com/AssiniboiaCapital/intro-to-assiniboia-farmland-lp.html

Assiniboia Capital Corp. (2013). ASSINIBOIA FARMLAND LIMITED PARTNERSHIP ENTERS INTO AN AGREEMENT FOR THE SALE OF ITS FARMLAND PORTFOLIO [PDF document]. Retrieved from http://www.assiniboiacapital.com/images/documents/releases/AFLP_NR_Dec12_2013.pdf

Bonnefield Inc. (2013). Pooled Limited Partnerships. Retrieved from http://bonnefield.com/index.php?page=pooled-limited-partnerships

Canadian Federation of Agriculture (2013). Standing Policy. Retrieved from http://www.cfa-fca.ca/sites/default/files/Policy%20Manual_E_2013_1.pdf

Carlberg, J.G. (2002). Effects of Ownership Restrictions on Farmland Values in Saskatchewan. Journal of Agricultural and Applied Economics, 34(2), 349—358.

Chinese Land Reform Policy: A World to Turn Upside Down. (2013, November 2). The Economist, 25—27.

Chris Martenson. (2012, December 5). Craig Wichner: A New Model for Investing in Farmland [Video file]. Retrieved from http://www.youtube.com/watch?v=r_U7NKvGzYg

Farm Land Security Board. (2013a). An Overview of The Farm Ownership Portion of The Saskatchewan Farm Security Act. Retrieved from http://www.farmland.gov.sk.ca/ownership/overview.shtml

Farm Land Security Board. (2013b, June 24). Farm Ownership Exemption Order. Retrieved from http://www.farmland.gov.sk.ca/ownership/overview.shtml

Ferguson, S., Furtan, H., & Carlberg, J. (2006). The Political Economy of Farmland Ownership Regulations and Land Prices. Agricultural Economics, 35, 59—65.

Fujii, M. (2010). Securitized Products, Financial Regulation, and Systemic Risk. Asian Development Bank Institute Working Paper 203. Retrieved from http://www.adbi.org/working-paper/2010/03/05/3632.financial.regulation.systemic.risk/

HighQuest Partners. (2010). Private Financial Sector Investment in Farmland and Agricultural Infrastructure. OECD Food, Agriculture and Fisheries Working Papers, 33, 1-33.

Hunt, B. (2014). Epsilon Theory Manifesto. Retrieved from http://www.salientpartners.com/epsilontheory/manifesto.html

Magnan, A. & Sommerville, M. (2011). Land rush: Speculators stake claim to Prairie farmland. Briarpatch. Retrieved from http://briarpatchmagazine.com/articles/view/land-rush

Painter, M.J. (2009). The Farmland Investment Market in Canada. Journal of International Farm Management, 5(1), 1—17.

Painter, M. & Eves, C. (2008). The Financial Gains from Adding Farmland to an International Investment Portfolio, Journal of Real Estate Portfolio Management,14(1), 3—73.

Reguly, E. (2013, January 24). Fence 'em in. Report on Business Magazine, 16, 16.

Reuters. (2013, June 10). Smithfield Deal May Face State Hurdles as Midwest Laws Eyed. CNBC. Retrieved from http://www.cnbc.com/id/100802457

Stastna, K. (2012, March 19). Real estate rules don't discriminate against foreigners. CBC News. Retrieved from http://www.cbc.ca/news/canada/real-estate-rules-don-t-discriminate-against-foreigners-1.1216517

The Province of Saskatchewan. (1977). The Saskatchewan Farm Security Act, c. S-17.1. Regina, SK: The Queen’s Printer.