KURTENBACH: CCPIB purchases 115,000 acres of prairie farm l

[Oscar]

KURTENBACH: CCPIB purchases 115,000 acres of prairie farm land.

May 11, 2015

To the Editor,

As a rather ancient and retired former grain and livestock producer, I read with interest and some concern that the Canadian Pension Plan Investment Board [CPPIB] has purchased 115,000 acres of prairie farmland from Assiniboia Farmland LP. ( CPPIB buys portfolio of agricultural land from Assiniboia Farmland LP for $128M, December 12, 2013 [ http://www.canadianbusiness.com/busines ... -for-128m/ ]

Michael Leduc, senior managing director of the CPPIB has stated that the Board exists to provide a foundation upon which Canadians can build their financial security in retirement. He also states that he liked the business model of Farmland LP . . . because they support family farms.

Surely, Mr. Leduc knows that it is the legal responsibility of a corporation to ensure the highest possible monetary returns to their shareholders "regardless of any other stakeholders."

In 2011 and 2012 the CPPIB had increased their investments in Lockheed Martin from $1 million to $78 million. The CPPIB has also increased its investment in The Bank of East Asia, [BEA] with branches here in Canada, from $1 million to $30 million.

Both Lockheed Martin and BEA are involved in the production of the weapons of war. It is highly unlikely that family farms would favour their land being used to enhance the profits of the manufacturers of arms.

The loss of what was left of the CWB to Saudi and American interests simply indicates the move to eliminate family farms and place the production of food into the tentacles of global corporations.

Leo Kurtenbach,
Saskatoon.
Phone: 306 652 5129.

[Oscar]

Consultations on Farmland Ownership Now Open

[ http://www.saskatchewan.ca/government/n ... sultations ]

Released on May 20, 2015

Go Online to Have Your Say

Today, Agriculture Minister Lyle Stewart announced details of the consultations for The Saskatchewan Farm Security Act. The consultations will allow all interested parties to share their views regarding farmland ownership rules.

“Consultations with the public will help us understand who should, or should not be, allowed to own farmland in Saskatchewan, specifically pension plans, investment trusts, pension plan administrators and foreign investors,” Stewart said. “I encourage all interested parties to participate in the consultations to help determine what is best for Saskatchewan.”

The consultations will take place online at [ www.saskatchewan.ca/farmland ]. The process includes an education document that illustrates:

•the current situation surrounding farmland ownership;
•the role of the Farm Land Security Board;
•the current agricultural landscape in Saskatchewan; and
•a jurisdictional comparison of farmland ownership rules in other provinces.

Currently only Canadian residents and 100 per cent Canadian-owned entities can own more than 10 acres of farmland in Saskatchewan. Regulations announced on April 13, 2015, clarified the existing legislation by placing a pause on the acquisition of land holdings by non-family trusts (with more than 10 beneficiaries), pension plans and administrators of pension plans while the review is being undertaken.

“We want to make sure our government is on the right path and makes the correct decisions regarding farmland ownership,” Stewart said. “We need to hear from stakeholders before determining if changes to the legislation are necessary.”

The survey can be completed online at [ www.saskatchewan.ca/farmland ]. A paper copy of the survey may be picked up at any Ministry of Agriculture Regional Office or can be requested by calling the Agriculture Knowledge Centre at 1-866-457-2377. At the end of the consultation period, the results of the survey and all comments will be posted online. Once the results have been analyzed, decisions will be made regarding next steps.

The consultation process runs until August 10. -30-

For more information, contact:

Angela Hall, Agriculture
Regina
Phone: 306-787-2359
Email: angela.hall@gov.sk.ca
Cell: 306-527-0521

[Oscar]

CPPIB buys portfolio of agricultural land from Assiniboia Farmland LP for $128M

[ http://www.canadianbusiness.com/busines ... -for-128m/ ]

Dec 12, 2013 The Canadian Press

TORONTO – The Canada Pension Plan Investment Board says it has acquired the assets of Assiniboia Farmland LP, a fund manager which owns a portfolio of agricultural lands, for up to $128 million.
The deal includes 115,000 acres of Saskatchewan farmland producing wheat, barley and canola.
Pending adjustments, it is expected to close in January 2014, with the current management team continuing to oversee the portfolio.
CPPIB says farmland is an “attractive asset class” for the board because it delivers historically “stable, risk-adjusted returns” as demand for agricultural products continue to grow.
The CPPIB, one of the world’s largest pension funds, invests money not needed by the Canada Pension Plan to pay benefits for some 18 million current and retired contributors.
CPPIB had net assets of $192.8 billion as of Sept. 30, up from $188.9 billion at the end of the previous quarter.
“Farmland investments align well with CPPIB’s long-term investment strategy while also further diversifying our portfolio,” said Andre Bourbonnais, senior vice-president of private investments.

MORE:
[ http://www.canadianbusiness.com/busines ... -for-128m/ ]

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If the law ain't broke, don't (a)mend it

[ http://www.ottawacitizen.com/business/b ... story.html ]

Bruce Johnstone, The Starphoenix | 02.20.2015

The fact that the Saskatchewan Party government is preparing to tighten up what are among the most restrictive land ownership rules in North America has a number of people scratching their heads, including yours truly.
Agriculture Minister Lyle Stewart confirmed Tuesday that his government would be announcing plans to change farmland ownership legislation, regulations or both sometime before the end of the spring session next month.
Specifically, Stewart wants to close a "loophole'' in the legislation that allowed the Canada Pension Plan Investment Board (CPPIB) to buy 115,000 acres of land from Assiniboia Farmland LP for $128 million in late 2013.
"The (Saskatchewan Farmland Security) Act of 2002 explicitly disallowed pension funds and investment trusts (from buying farmland in the province),'' Stewart said.
"That was the intent (of the act) and I'm getting a pretty clear message from farming country that's what they expect.'' Apparently, farmers and ranchers have been ringing Stewart's phone off the hook complaining about the transaction, which was vetted by justice ministry officials and the Farmland Security Board before being approved.
Even Stewart admits the transaction was consistent with the letter of the law, which was introduced by the former NDP government in 2002 to allow "Canadian citizens or permanent residents" and "100 per cent owned Canadian corporations" to invest in Saskatchewan farmland.
(Previously, out-of-province Canadians and foreigners were restricted from owning more than 10 acres of land).
But Stewart says the transaction was not consistent with the intent or spirit of the legislation, which he says intended to restrict farmland purchases by institutional investors, such as the CPP. How's that again?
First, CPP is owned by Canadian workers and pensioners and, as such, is 100 per cent Canadian-owned. Moreover, CPP's unique corporate structure requires its directors to represent various regions of the country and answer to provincial and federal finance ministers. In fact, CPPIB's named shareholders are government officials, who are, by definition, Canadian.
"CPPIB did not make use of any loophole," Michel Leduc, public affairs director for the CPPIB, said in a recent op-ed piece in the Leader-Post.
"The SFSA was updated in 2002 to allow both Canadian individual and Canadian entities to own farmland. It says that foreigners and publicly traded companies are restricted.''
So who's right? CPPIB, Justice and FLSB officials who approved the transaction? Or Stewart and other opponents, like Progressive Conservative Party leader Rick Swenson, who declared the deal "wrong, both legally and morally"? Swenson's view is that Canadians should be able to own Saskatchewan farmland, as long as they continue to farm it. "We need more farmers, not less ... But this is speculation.''
It's hard to imagine any institutional investor less speculative than the CPPIB. In fact, the 115,000 acres CPPIB bought from Assiniboia Farmland continue to be farmed, in many cases, by the same farmers who sold the land to Assiniboia in the first place. As long-term investors, CPPIB will be just as good stewards of the land as farmers, if not better. So what's the problem here?

MORE:

[ http://www.ottawacitizen.com/business/b ... story.html ]


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Funds blocked from investing in Sask. farmland, for now

[ http://www.canadiancattlemen.ca/daily/f ... nd-for-now ]

By Staff Published: April 13, 2015

CPP Investment Board "concerned" about province's move, pending land ownership review
Saskatchewan’s government plans to take a closer look at its rules on investment in farmland, but will block such investments by pension funds and other “institutional” investors while the review is underway.
The province said Monday it will soon run further consultations and a review of farmland ownership rules as now laid out under the provincial Farm Security Act.
While the review is underway, though, regulations will prohibit “certain organizations, like pension plans and other institutional investors” from buying Saskatchewan farmland, the government said.
Further details on the consultation process are expected to be announced later this spring, the province said. The review is expected to include opportunities for “interested groups and individuals” to submit views online.
During the freeze, pension plans, administrators of pension fund assets and trusts will be defined by regulation as “not Canadian-owned entities.” Family trusts with fewer than 10 Canadian individuals listed as beneficiaries will still be able to buy farmland.
An “interest” in farmland will be defined during the freeze as “any type of interest or agreement, direct or indirect, that results in any of the benefits (i.e. capital appreciation), either directly or indirectly, of owning of the land.”
Financed farmland purchases during the freeze will have to be done through a financial institution registered to do business in Canada, or through a Canadian resident.
The provincial Farm Land Security Board will be able to provide exemptions for “economic development initiatives” where needed in the meantime, such as for oil and gas development.
The Farm Security Act was meant to limit ownership of Saskatchewan farmland to “Canadian residents and 100 per cent Canadian-owned corporations,” the province said, but the act didn’t “explicitly define” institutional investors, such as pension plans, administrators of pension fund assets and trusts.
“Our goal is not to limit investment, but to ensure the long-term success of Saskatchewan’s agriculture industry and economy,” provincial Ag Minister Lyle Stewart said in a release Monday.
“Recently, the issue has arisen of whether institutional investors like pension plans should be able to purchase Saskatchewan farmland… There are differing views on this matter, so we want to hear from producers and other interested Saskatchewan residents.”
“Doing no harm”
The Canada Pension Plan (CPP) Investment Board, for one, said Monday it’s “concerned” about the province’s decision.
The CPP board in late 2013 bought the assets of Assiniboia Farmland, a fund that owns and manages a portfolio of about 115,000 acres of Saskatchewan farmland, for about $120 million. The board said it had, until now, planned “further purchases” in Saskatchewan farmland.
The Assiniboia portfolio is made up of “pockets” of land, with individual farms rented out to, and farmed by, local farmers. The CPP board said Monday its ownership offers farmers “financial opportunities that support the family farm structure in what has become an extremely capital-intensive business.”
“We are confident that our farmland investments will generate returns for the CPP Fund while doing no harm to Saskatchewan, its farmland market or the farmers,” Michel Leduc, the board’s head of public affairs and communications, said in a release. “If anything, they will benefit.”
The CPP board, he said, “intend(s) to fully participate in the government’s review, and we welcome the government’s perspective that Saskatchewan farmland should be owned by Canadians for the benefit of Canadians.”
The CPP board said it was “proactive” at the time in making sure it was a qualified buyer; and had notified the Farm Land Security Board of its plans in advance.
At the time, the board said, it “did not receive any indication… that its investments in farmland were not welcome.” — AGCanada.com Network