Google – AFP, Clement Sabourin (AFP), 22 June 2013
Sheldon Zou
inspects his equipment on his farm in Ogema, Saskatchewan,
on May 23, 2013
(AFP/File, Clement Sabourin)
|
OGEMA,
Canada — With too few farms in China to feed a burgeoning population, Chinese
immigrants have started buying up agricultural lands in Canada and shipping
produce to Asia.
But with
new investment comes fears that a generation of young Canadian would-be farmers
are being squeezed out of the market by newcomers that some suspect are being
bankrolled by the government in Beijing.
In
Saskatchewan province, home to 45 percent of all arable land in Canada, the
price of farmland has risen an average of 10 percent in the last year, and as
much as 50 percent over three years in areas where Chinese immigrants have
settled, according to farmer Ian Hudson, who lives near the village of Ogema.
Provincial
authorities counted a half dozen large investment firms buying up farmlands in
the province of one million people, but could not say if any of them are linked
to Beijing, nor estimate the size of their land holdings.
Facing
mounting demands from local mayors for an investigation, Saskatchewan officials
began looking into the issue last year.
Andy Hu
plays with his dog as he inspects
sheep on his farm in Ogema, Saskatchewan,
May
24, 2013 (AFP/File, Clement Sabourin)
|
"The
law in Saskatchewan is clear that investment in farmland in this province
(buying more than 10 acres) is restricted to citizens of Canada and permanent
residents," provincial agriculture minister Lyle Stewart told AFP.
Similarly
farm corporations must be 100 percent Canadian-owned.
However, he
added, a special investigator was hired to probe "rumors that certain
interests are trying to get around our law... that these people are funded by
offshore money," as well as "where the investment money is coming
from."
"Two
or three suspicious cases" were identified that are facing further
scrutiny, the minister said, declining to offer further details while the
investigation is ongoing.
Stewart
noted also that Saskatchewan real estate is relatively cheap, taxes are low,
borrowing rates are at a historic low, commodity prices are on the upswing and
hence, "conditions are perfect for people who want to invest."
But after
Chinese state-owned firms poured vast sums into neighboring Alberta's oil sands
-- which forced Ottawa to tighten its investment rules to try to prevent
foreign governments from controlling Canadian resources -- many in rural Saskatchewan
are quick to believe that Beijing is now targeting their farmland to feed its
people.
"Some
people say that the Chinese state is behind this. That's wrong," said Andy
Hu, the 39-year-old chief executive of Maxcrop, an upstart investment firm that
deals in rural Saskatchewan real estate.
"Our
investors are people with money and they're looking for a good
investment," he said.
Founded in
2009, the company owns 3,000 hectares (7,400 acres) and manages nearly 30,000
hectares for investors.
A former
manager of a Mattel toy factory in China, Hu moved to Canada in 2004 and
started a real estate firm in Alberta before relocating to Saskatchewan after
seeing potential profits in its "undervalued" farmlands.
China's
emerging middle class "needs more protein" and "they're ready to
pay to get good food," he noted.
So Hu
scoured the province in search of the best lands and set his heart on Ogema, a
village of 400 inhabitants.
Real estate
speculation has made it harder
for young local farmers to buy lands,
notes
Stuart Leonard, May 23, 2013
(AFP/File, Clement Sabourin)
|
His
clients, most of them investors rather than farmers, and some with Canadian
citizenship but living abroad, quickly snapped up thousands of hectares of land
in the vicinity, which Maxcrop now leases to local farmers.
Real estate
speculation, however, has made it harder for young local farmers to buy their
own lands, notes fifth-generation farmer Stuart Leonard, 34.
Sporting a
cap and sunglasses, behind the wheel of a monster-sized pickup, Sheldon Zou
says he moved with his wife and two girls one and a half years ago to Ogema --
a long way from Tiananmen Square where he protested as a student in 1989.
He bought a
1,600-hectare farm and equipment for $1.5 million, with the help of a loan from
his family.
With little
actual farming experience he relied on the kindness of locals to show him the
ropes. This year for the first time, he is seeding his own canola fields.
For Hu,
growing crops is just the start. He points to an abandoned town near Ogema
where he set up a sheep farm and hired a young Chinese immigrant and his wife
to herd the animals.
Hu says he
aims within two or three years to turn the operation into the largest in
Canada, with 5,000 sheep, and export all of the meat to China. "The
opportunities are huge here," he says.
But Leonard
is a bit skeptical.
"Those
big corporations, they would never be able to farm those lands themselves. Will
they turn us all into employees?" he asks.
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