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Ownership Restrictions and Farmland Values: Evidence from the 2003 Saskatchewan Farm Security Act Amendment

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  • Chad Lawley

Abstract

An underlying issue in discussions of farmland ownership restrictions is their impact on farmland values and on land acquisition costs for local farmers. In this article, I examine the farmland value consequences of relaxing a particularly stringent farmland ownership restriction in the Canadian province of Saskatchewan. The Saskatchewan Farm Security Act was introduced in 1974 and prohibited non-Saskatchewan residents and corporations from owning Saskatchewan farmland. In 2003, the act was amended to allow Canadian residents and Canadian corporations to acquire farmland, bringing Saskatchewan in line with neighboring provinces and states that restrict foreign ownership but are open to domestic ownership. I estimate the impact of the 2003 amendment on Saskatchewan farmland values using 1995 through 2010 parcel-level farmland transactions in Saskatchewan and its neighboring province of Manitoba. The impact of the 2003 amendment is assessed in a series of econometric models that use differential trends in farmland prices in the two provinces before and after the amendment. I find that the 2003 amendment led to a 1.9% to 3.1% per year increase in Saskatchewan farmland values.

Suggested Citation

  • Chad Lawley, 2018. "Ownership Restrictions and Farmland Values: Evidence from the 2003 Saskatchewan Farm Security Act Amendment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 311-337.
    • Handle: RePEc:oup:ajagec:v:100:y:2018:i:1:p:311-337.
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    File URL: http://hdl.handle.net/10.1093/ajae/aax070
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    Citations

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    Cited by:

    1. Richard J. Vyn & Max Zongyuan Shang, 2021. "Prices paid for farmland in Ontario: Does buyer type matter?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(1), pages 59-72, March.
    2. Carsten Croonenbroeck & Martin Odening & Silke Hüttel, 2020. "Farmland values and bidder behaviour in first-price land auctions [Identification of standard auction models]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(2), pages 558-590.
    3. Lars Isenhardt & Stefan Seifert & Silke Hüttel, 2023. "Tenant Favoritism and Right of First Refusals in Farmland Auctions: Competition and Price Effects," Land Economics, University of Wisconsin Press, vol. 99(2), pages 302-324.
    4. Jauernig, Johanna & Brosig, Stephan & Hüttel, Silke, 2023. "Profession and residency matter: Farmers' preferences for farmland price regulation in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 74(3), pages 816-834.
    5. Stefan Seifert & Christoph Kahle & Silke Hüttel, 2021. "Price Dispersion in Farmland Markets: What Is the Role of Asymmetric Information?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1545-1568, August.
    6. B. James Deaton & Chad Lawley, 2022. "A survey of literature examining farmland prices: A Canadian focus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 95-121, June.

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