Policy Objectives
- Mandatory right of first refusal for local producers
- Substantial benefit test for foreign investors
- Closing corporate and pension fund loopholes
- Reciprocal ownership standards
- Enhanced beneficial ownership transparency
- Farmland as critical infrastructure
The Alberta Non-Partisan Association supports innovative, subsidy-free regulatory frameworks to reduce foreign ownership in the agricultural sector. These objectives focus on keeping Alberta farmland in the hands of active Canadian producers.
1. Mandatory Right of First Refusal for Local Producers
Modeled after France's SAFER system, this objective implements a provincial requirement that any agricultural land sale be first offered to local young farmers or neighboring agricultural operations.
- Domestic buyers receive a priority window to match a foreign offer
- Title transfer to non-Canadian entities only after local options exhausted
- Supports generational transfer and farm succession
- No public expenditure required—purely regulatory mechanism
2. Implementation of a Substantial Benefit Test
The NPA advocates for strengthening the Foreign Ownership of Land Regulations (FOLR) by requiring foreign investors to prove a "substantial benefit" to Alberta beyond mere capital injection.
Potential criteria include:
- Introduction of specialized technologies not currently available in Alberta
- Commitments to local value-added processing (building mills, storage facilities)
- Guaranteed employment levels for Alberta workers
- Investment in agricultural research and development
3. Restriction of Corporate and Pension Fund Loopholes
Inspired by Saskatchewan's stricter thresholds, this goal closes loopholes that allow large non-agricultural corporations or pension funds—even those with significant foreign backing—to acquire vast tracts of land.
Proposed regulations:
- Only individuals or 100% Canadian-owned, non-publicly traded corporations can own more than a nominal amount of farmland
- Pension funds with foreign investment components subject to ownership limits
- Existing holdings grandfathered but future acquisitions restricted
4. Reciprocal Ownership Standards
This innovative approach introduces "Reciprocal Rights" legislation where foreign entities can only purchase land in Alberta if their home country allows Canadian citizens to purchase agricultural land under identical conditions.
- Acts as diplomatic and economic barrier without provincial financial outlays
- Creates incentive for trade negotiations on agricultural land access
- Ensures fair treatment of Canadian interests abroad
- Simple, transparent standard for enforcement
5. Enhanced Beneficial Ownership Transparency
To deter speculative investment, this objective requires full, mandatory disclosure of all "beneficial owners" in any land transaction involving trusts or shell companies.
- Complete ownership chains must be disclosed to provincial registry
- Increased legal risks for those attempting to obscure foreign control
- Public registry of beneficial owners for agricultural land
- Ensures land remains in hands of active Canadian producers
6. Reclassification of Farmland as Critical Infrastructure
The NPA supports reclassifying primary agricultural land and food supply chains as Critical Infrastructure. This would allow the Alberta government to block foreign acquisitions on grounds of provincial food security.
| Current Status | Proposed Status |
|---|---|
| Treated as standard real estate asset | Classified as Critical Infrastructure |
| Complex review process for blocking sales | Simplified review on food security grounds |
| Land as investment commodity | Land as vital provincial resource |
Implementation Approach
These objectives are designed as regulatory frameworks requiring no government subsidies or direct expenditure. They work by:
- Establishing clear rules for market participation
- Creating transparency in ownership structures
- Prioritizing active agricultural use over passive investment
- Protecting food security as a provincial interest