Patrons look to lease pastures

PFRA patrons groups will have the opportunity to lease their pastures from the province instead of having to purchase them, according to the Saskatchewan Ministry of Agriculture.

Lyle Stewart, Minister of Agriculture, said the first 10 federal community pastures to be transitioned from the province to patrons groups for the 2014-grazing season would have a lease option available if the groups are not able to purchase the land. He said the province would own the pastures in this instance and patrons groups would hold the lease to operate the pastures.

“We’re trying to be as encouraging as possible to patrons groups to consider purchase because we think it’s in the long-term interest,” said Stewart.

The Saskatchewan Government is working with Farm Credit Canada to develop financing options for patrons groups interested in purchasing their pastures.

“The more we ran the numbers ourselves, it appears that some of the pastures won’t work real well for a sale and may necessitate leasing,” he said. “It was always an option, leasing was, but we find…sales probably are not going to work for every instance.”

The first 10 community pastures to be divested by the federal government in Saskatchewan include: Estevan-Cambria; Excel; Fairview; Ituna-Bon Accord; Keywest; Lone Tree; Newcombe; Park; Wolverine and McCraney. In all, 62 pastures operated under the Community Pastures Program in Saskatchewan will be transferred to the province and patron-controlled operation by 2018.

The pastures will continue to be managed by federal government PFRA (Prairie Farm Rehabilitation Administration) staff during the 2013-grazing season.

Stewart said these first 10 were chosen due to interest from patrons advisory committees from these pastures. He said these groups have expressed interest in “going early” in the transition process, which made them a priority.

“There are also factors which have a negative influence on moving (some) pastures to the front of the list and those are things like a lot of oil and gas activity that has to be transferred into the provincial system and that is a big IT job and a lot of work,” he said.  “It might take a little longer. There are some pastures that contain substantial tracks. There are 440,000 acres in all that don’t even have or never have had titles raised for them, so that is going to take a little time. Those are negative factors. The positive ones are generally interest from the patron groups.

“Of course, before any lease or sale can be conducted those patrons groups will have to become legal entities, so that we’ll have somebody to deal with.”

Stewart said the province is only working with an “estimated value” of these pastures at this point and before any lease or sale can go through they will have to be appraised. He said expensive commodities such as oil and gravel will “generally not” be included in a lease or sale.

“The only offers that we are entertaining for sales or lease are offers from the patron groups that already occupy the pastures,” said Stewart, adding there will be no competing interests for the pastures from corporations or out-of-province groups.

“Some of (these 10 patrons groups) have just expressed interest. Others have presented proposals or ideas. All of that is being considered, so it’s early days. We’ve sent out letters to the patrons of the first 10 pastures that have been chosen and we’ll be holding in-person meetings with patrons groups with those 10 pastures in the near future.”

To read more please see the Oct. 29 print edition of The Davidson Leader.