Standing Committee on Agriculture Hansard Verbatim Report No. 7 – May 22, 2002 Legislative Assembly of Saskatchewan Twenty-fourth Legislature STANDING COMMITTEE ON AGRICULTURE 2002 Ron Harper, Chair Regina Northeast Donna Harpauer, Vice-Chair Watrous Pat Atkinson Saskatoon Nutana Bob Bjornerud Saltcoats Wayne Elhard Cypress Hills David Forbes Saskatoon Idylwyld Carolyn Jones Saskatoon Meewasin Ron Osika Melville Randy Weekes Redberry Lake Published under the authority of The Honourable P. Myron Kowalsky, Speaker STANDING COMMITTEE ON AGRICULTURE 127 May 22, 2002 The committee met in camera. In order to do this, what we do is we commission and carry out objective professional research designed to do two things. The committee met at 9:02 Number one is to identify impediments to wealth creation; secondly, to identify opportunities to wealth creation. The Chair: — I will now convene the meeting of the Standing Committee on Agriculture for the purposes of hearing We believe that it’s the ability of the economy to create wealth presentations. that finances all the other activities in society such as social and health spending, social and economic infrastructure, education, Our first presenter this morning is from the Prairie Centre training. Therefore it’s important to ensure that we identify both Policy Institute. And what I will do is I will invite the members the obstacles and the opportunities so we can act accordingly. to introduce themselves. And then, Craig, we’ll turn it over to you to introduce yourself and anyone you have with you, and We then take the results of our studies, we publish them, and then we’ll be ready for your presentation. distribute them broadly across the prairie region in order to stimulate discussion and debate both at the policy and the So with that, my name is Ron Harper, I’m Chair of the Standing grassroots level. Our funding comes from the voluntary Committee on Agriculture. And we’ll start on the left here. contributions of supporters from across the prairie region, which is currently comprised of approximately 95 per cent rural Mr. Prebble: — I’m Peter Prebble, and I’m the member of the and 5 per cent urban. legislature for Saskatoon Greystone. We take particular interest in the province of Saskatchewan for Mr. Forbes: — David Forbes, Saskatoon Idylwyld. two primary reasons. Number one, Saskatchewan, we believe, has the potential to be a very prosperous province. Yet after Ms. Jones: — Good morning, I’m Carolyn Jones, MLA for almost 100 years, I would argue that this prosperity has still not Saskatoon Meewasin. been realized. We are in fact classified, as you know, as a have-not province. Ms. Atkinson: — I’m Pat Atkinson, MLA, Nutana. Secondly, Saskatchewan is facing some significant challenges. Mr. Fenson: — Avrum Fenson, researcher to the committee. I’m sure that the committee members are aware of most of these challenges, so I won’t go into them in detail. But I do want to Mr. Kaczkowski: — I’m Viktor Kaczkowski. I’m the Clerk to summarize the impact of these challenges by noting how they the committee. will . how the changing demographics are going to impact our tax base. Ms. Harpauer: — Donna Harpauer, MLA for Watrous. According to the findings of a recent report released by the Mr. Bjornerud: — Morning. Bob Bjornerud, I’m the MLA for Prairie Centre, by 2026, 46 per cent of Saskatchewan’s Saltcoats. population is either going to be under 15 or over 60 years of age. These are just StatsCanada numbers here. And while all Mr. Elhard: — Morning, Craig. I’m Wayne Elhard. I’m the three Prairie provinces are facing the similar demographic shift MLA for Cypress Hills. with the baby boomers aging, Saskatchewan is going to feel it more intensely than the other two Prairie provinces for three The Chair: — Thank you. Craig, if you will introduce yourself reasons. and anyone you with you and then we will have your presentation. Number one, our population is not growing. Number two, Aboriginal employment is increasing slower than Aboriginal Mr. Docksteader: — Thank you, Mr. Chairman. It’s a pleasure population. In other words, there’s a decreasing rate of to be here. My name’s Craig Docksteader. I’m coordinator with Aboriginal employment. And thirdly, too many young people the Prairie Centre Policy Institute. I just want to confirm our continue to leave the province. time. Are we going the full 30 minutes? Consequently when you take all these factors and you account The Chair: — Yes, the full 30 minutes. for those who are not working, those who work but do not pay taxes, by 2026 each Saskatchewan person of working age Mr. Docksteader: — Okay. I’ll just introduce the Prairie making a net tax contribution will have 17 people dependent on Centre Policy Institute to you briefly, give you a bit of a them to pay for their social and economic services. background on our interest in the possible changes to the Saskatchewan Farm Security Act, and then proceed into a kind It’s quite clear that this trend is not sustainable and clearly of the heart of our presentation this morning. demonstrates that change is required. And it’s within this context that we want to address The Saskatchewan Farm The Prairie Centre Policy Institute is a non-profit, non-political Security Act. The demographic projections indicate that the organization. Our purpose is to advance ideas on wealth status quo is not an option and clearly demonstrate that we must creation in order to enhance both the economic and the social aggressively pursue wealth creation in order to ensure a well-being of the prairie region. stronger economic future. 128 Agriculture Committee May 22, 2002 The question is why should we change the Act with . Well ones. Sometimes that is used as a reason to not change the Act; much of the debate centres around the impact of the Act on I would argue it’s a reason to change the Act. agriculture and the farm community. The policy institute would like to draw the attention of the committee to the broader In addition to serving as a general disincentive for investors and implications of the Act. We would argue that changing the Act immigrants, there’s compelling anecdotal evidence which is about far more than determining who can buy Saskatchewan suggests that Saskatchewan is courting a reputation in the farm land; it’s about facilitating an essential and fundamental marketplace as an economic backwater. Changing this Act will shift in attitude that is necessary if Saskatchewan is going to send a strong signal to both domestic and foreign investors that meet the challenges that are on our horizon. Saskatchewan is not stuck in the past but is embarking on a journey to become a preferred place both to invest and reside. We strongly support changing The Saskatchewan Farm Security Act to bring Saskatchewan’s farm land ownership rules in line I’d like to respond briefly to some of the concerns that are with those of Alberta and Manitoba for the following reasons. commonly raised when discussing the issue of removing restrictions on the domestic ownership of Saskatchewan farm Number one, The Saskatchewan Farm Security Act reinforces land. Some of these are as follows: escalating land values — the the myth that we must be wary of outside investment in concern is that agricultural land values will rise, making it more Saskatchewan. I think it would be difficult to overstate the difficult for emerging or expanding producers to purchase farm importance of countering this myth in order to facilitate a shift land. in attitude of Saskatchewan people toward outside investment. As stated in the ACRE (Action Committee on Rural Economy) We would counter that the impact to Saskatchewan’s farm land report, the very survival of rural Saskatchewan necessitates ownership regulations on land values in Saskatchewan has massive investment from outside our provincial borders. And I actually never been empirically evaluated or determined. quote from the report: However, it’s commonly accepted that the existing rules do play some downward pressure on price due to reduced market The size of the investment dictates that the vast majority of size. the investment must come from the private sector generally and out-of-province sources specifically as the provincial While an upward adjustment in price is foreseeable in the event treasury and private savings of Saskatchewan residents are that the existing rules are relaxed, prices are not likely to surge simply not large enough to sustain this level of investment. due to the current challenges facing the agriculture sector. Any rise in the price of agricultural land which results from Both rural and urban Saskatchewan benefit from outside changing the Act will in fact be a reflection of the true market investment. As long as Saskatchewan continues to harbour value of farm land. And we would argue such an adjustment misgivings about such investment the province will not be able would only serve to bolster the image of growth and prosperity to attract the capital necessary to secure its future as a dynamic, that we want Saskatchewan to convey. prosperous place to live and do business. Those who support the existing restrictions on farm land Changing The Saskatchewan Farm Security Act frankly is ownership in order to artificially depress land values are, in about leaving our historical apprehension toward outside private fact, advocating an intergenerational transfer or investment behind, and embracing a future characterized by the intergenerational subsidy from retiring farmers to expanding pioneering and entrepreneurial attitudes which founded this ones. If it is deemed to be in the public interest to keep the price province.