The rules keep changing on Crown land

In 2018, the provincial Progressive Conservatives began instituting new regulations under the Crown Lands Amendment Act, in response to a request from the Manitoba Beef Producers who, in 2017, asked for the agricultural Crown land lease allocation system to be changed from its long-standing community and Manitoba farmer-centred points-based system to a pure auction system.

Leases now transfer to the highest bidder, and the bidding is open to out-of-province parties, not required to live in Manitoba. The changes also removed unit transfers and lifetime leases, as well as instituting a 15-year maximum lease duration.

This created instability that negatively impacts the older generation of ranchers, who had planned to include their leases with their farms when they retired and sold or passed on their farms.

For younger ranchers wanting to obtain a lease, the changes have resulted in a three-fold increase in lease rates. This has created huge difficulty for young ranchers, despite the minister’s suggestion at the time that the changes would help young ranchers and help to increase the number of cows raised in Manitoba.

What is the motivation behind these changes? If the goal was to increase cattle production and support younger lease holders, how does this help? Will it not contribute to an even greater exodus of leasing producers?

Will it not reduce the incentive for producers to make long-term investments? Will retiring ranchers be fairly compensated for the improvements they made on leased land? Will younger ranchers be able to win leases in the face of difficult cattle market prices?

Allowing outside-of-Manitoba investors to bid is unfair to local ranching families, unless they wish to reside in Manitoba.

Our leasing communities struggle to survive. Money becomes the only focus in decision making on who cares for public land.

The environment suffers too. Agricultural Crown land contains sensitive ecosystems that are difficult to manage and can easily be damaged without a long-term view toward stewardship. Increased lease fees, following years of poor cattle prices, creates hardship that pressures land managers to squeeze the land for financial return.

As part of a series of election promises, the provincial Conservatives have promised to cut rental fees for Crown land. This is a response to a problem they created; more changes may yet happen. Out-of-province investors who are contributing to driving up lease rates presumably get the lease fee break as well.

The Progressive Conservatives are changing the maximum lease duration to 20 years, which is a step in the right direction in the case of local lease holders, but not in the case of outside investors.

While MBP supported the highest-bidder system, there are other Manitoba farm voices. The National Farmers Union in Manitoba is a farm voice that has opposed the changes to the Crown land lease system since October 2018.

The Manitoba Association of Crown Land Leaseholders in 2019 became aware of the changes and were really upset.

In Ontario, farmers have a choice of three farm organizations to represent them. In the case of the recent lease changes in Manitoba, perhaps a range of Manitoba farm voices would have led to a better outcome.

The NFU in Manitoba now calls upon the Manitoba government to hold a vote among Manitoba Crown land leaseholders from 2017 until now to determine if they want to keep the costly bidding and have outside-of-Manitoba investors involved through an auction system, versus an improved community-based points system.