Alberta to Ban Pensions Buying Farmland

Summary#

This Alberta bill would ban pension plans and trust corporations from owning or holding any legal stake in most farmland in the province. The goal is to keep agricultural land in the hands of farmers and local owners, and to prevent large financial institutions from buying it.

• Defines “agricultural controlled land” as farmland outside city, town, village, or summer village limits.
• Bans pension plans (including major public-sector plans and the Canada Pension Plan) and trust corporations (trust companies) from taking or holding any interest in that land.
• The land titles office would refuse to register any such interest, and documents trying to do so would be invalid.
• Existing holdings before the law takes effect are allowed; those owners can keep, sell, or transfer them.
• Updates the trust company law so it lines up with this ban.
• Would take effect on a date set by the government (not immediate).

What it means for you#

• Farmers and ranchers

  • When you sell farmland, pension plans and trust companies could not be buyers. That may reduce the number of bidders and could affect sale prices.
  • Trust companies could not hold new mortgages on farmland. You could still borrow from banks, credit unions, or Farm Credit Canada.
  • These institutions also could not take other legal interests in your land (for example, a registered mortgage or long-term lease).
  • If they already hold an interest in your land before the law starts, that can continue until it’s paid out, sold, or ended.

• Rural landowners

  • If you plan to sell farmland, you could not sell to a pension plan or trust company.
  • If you have an existing trust company mortgage or other registered interest, it can remain in place. New ones would not be allowed after the law starts.

• Pension plan members

  • Your plan would be barred from new direct investments in Alberta farmland. Existing farmland investments in Alberta could be kept or sold.

• Trust corporations and other lenders

  • Trust companies could not hold title, mortgages, or other registered interests in Alberta farmland going forward.
  • You may need to change lending practices (for example, use other collateral or refer clients to other lenders).

• Real estate and legal professionals

  • The land titles office would reject registrations that name pension plans or trust corporations for interests in farmland. Expect added due diligence to avoid rejected filings.

• Urban residents

  • Little to no direct impact. Land inside cities, towns, villages, and summer villages is not covered.

Expenses#

No publicly available information.

Proponents' View#

• Helps keep farmland available and affordable for working farmers and local buyers, not large financial players.
• Reduces upward pressure on land prices and slows consolidation of farms.
• Protects long-term food security and rural community stability by keeping ownership closer to the people who work the land.
• Clear, simple rule that is easy to enforce at the land titles office.
• Includes people acting on behalf of a pension plan to limit loopholes.

Opponents' View#

• Reduces the pool of potential buyers, which could lower sale prices for farmers looking to retire or exit.
• Limits financing choices: trust companies could not hold farmland mortgages, which may make credit harder to get for some borrowers.
• The ban on “any interest” may be broad and could unintentionally block routine deals (for example, certain leases or easements).
• Could be hard to police if investments are made through complex structures or pooled funds.
• May slightly reduce investment returns for pension plans by removing one asset class in Alberta.