Released on March 29, 2007
Crown land lessees can look forward to a decrease in their Crown land cultivation and grazing rental rates for 2007.
Cultivation rental rates will decrease by eight per cent compared to the 2006 rates, and 2007 grazing lease rates will decrease by 11 per cent compared to last year.
“We are giving producers advance notice of these changes so that they can budget more effectively, which should help in light of the challenges in the livestock industry at the moment,” Agriculture and Food Minister Mark Wartman said.
The formula used to calculate Crown land cultivation rental rates is sensitive to commodity prices and productivity. Rates change each year based on the commodity prices taken from the last complete crop year, and long-term yield data. A reduction in wheat, flax and canola prices in the 2005-06 crop year triggered the eight per cent decrease in cultivation rental rates.
The formula used to calculate grazing rental rates is sensitive to cattle prices. Rates change each year based on cattle prices from October and November of the previous year. The 11 per cent decrease reflects the decline in the price of cattle.
Both formulas have been in use, relatively unchanged, since the 1980s.
“The formulas used to determine rents on Crown land are commodity price sensitive,” Wartman said. “This ensures that the rental rate remains at a fair level as commodity prices change from year to year.”
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For more information, contact:
Scott Brown
Agriculture and Food
Regina
Phone: 306-787-4031
Email: sbrown@agr.gov.sk.ca