The province of Saskatchewan already imposes some of the strictest regulations regarding farmland purchases in North America, however it is looking to tighten rules further as local farmers are worried about being priced out of the market in the face of increasing interest from institutional investors. The provincial government will be reviewing laws currently in place, and will examine eliminating the possibility entirely of any future farmland purchases by the C$234 billion (US$188.5 billion) Canada Pension Plan Investment Board (CPPIB). Saskatchewan law currently requires that companies that purchase farmland must be 100% owned by Canadians, with foreign buyers limited to 10 acres. Pension funds are also banned from farmland purchases, however the CPPIB was able to buy 115,000 acres in 2013 because of a corporate structure loophole. Many North American investors are watching what progresses, and sentiments are that if the regulations are tightened, it will result in depressed land values and leave Saskatchewan farmers under-capitalized.
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