Agricultural Crown Lands Leases and Permits Regulation

Agricultural Crown Lands Leases and Permits Regulation, M.R. 152/2017 The Crown Lands Act , C.C.S.M. c. C340 Regulation 152/2017 Registered December 8, 2017 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Prohibition 3 Eligibility for leases or permits 4 Obtaining an agricultural lease or permit 4.1 Allocating lands 4.2 Auctions 4.3 Successful bidder 4.4 Applications 5 Issuance of lease or permit 6 Lease term 6.1 Renewal of forage leases issued before October 1, 2019 6.2 Extension of forage leases issued on or after October 1, 2019 6.3 Cropping leases not renewable 7 Permit term 8 Transfer of lease or permit 8.1 Nomination certificate 8.2 Application and decision re nomination certificate 8.3 Nomination certificate is time-limited 8.4 Nomination 8.5 Nomination — temporary exception 9 Annual amount payable 10 Annual rent or fee 10.1 Temporary adjustment in annual rent or fee 10.2 Annual rent or fee for 2025 and 2026 10.3 Adjustment — change in use or access 11-15 Repealed 16 Duties 17 Withdrawal of land 18 Cancellation of lease or permit 18.1 Other actions 19 Improvements 20 Crown not liable for damage 21 Manitoba Regulation 216/89 applies 22 Special leases 23-27.4 Repealed 27.5 Leases and permits issued before January 1, 2024 27.6 Improvements — leases and permits expired before January 1, 2024 27.7 Improvements — leases and permits expiring in 2024 28 Repeal 29 Coming into force Schedule DEFINITIONS Definitions 1 The following definitions apply in this regulation. "Act" means The Crown Lands Act . («  Loi  ») "agricultural lease or permit" means a cropping lease, cropping permit, forage lease, grazing permit or hay permit. (« bail ou permis agricole ») "animal unit month" or "A.U.M." means the amount of forage required to feed one mature 454 kg (1,000 pound) cow, with or without calf at foot, for one month while maintaining the vegetative stand on the leased or permitted lands in good condition. (« unité animal-mois ») "band" has the same meaning as in the Indian Act (Canada). (« bande ») "casual permit" means a permit that is issued in accordance with clause 7(2)⁠(b). (« permis occasionnel ») "common-law partner" of a person means (a) another person who, with the person, registered a common-law relationship under section 13.1 of The Vital Statistics Act ; or (b) another person who, not being married to the person, cohabited with him or her in a conjugal relationship for a period of at least three years commencing either before or after the coming into force of this definition. (« conjoint de fait ») "cropping lease" means a cropping lease for agricultural Crown lands issued under the Act. (« bail de culture ») "cropping permit" means a permit issued under the Act to cultivate and harvest crops on vacant agricultural Crown lands. (« permis de culture ») "cultivated lands" means the land specified under a cropping lease or a cropping permit as being suitable and available for cultivation. (« bien-fonds cultivé ») "director" means a person appointed as a director of agricultural Crown lands under subsection 7.3(1) of the Act. (« directeur ») "eligible holder" means an individual, partnership, band, cooperative, corporation or other entity that is eligible to hold an agricultural lease or permit under subsection 3(1). (« titulaire admissible ») "forage capacity" means, in respect of a parcel of land, the number of animal unit months that the land is capable of producing. (« capacité fourragère ») "forage lease" means a forage lease for agricultural Crown lands issued under the Act. (« bail à fourrage ») "grazing permit" means a permit issued under the Act to graze livestock on perennial forage crops on vacant agricultural Crown lands. (« permis de pâturage ») "hay permit" means a permit issued under the Act to cut hay on vacant agricultural Crown lands. (« permis de coupe des foins ») "immediate family member" means the spouse, common-law partner, parent, child, grandparent, grandchild, brother, sister, aunt, uncle, niece or nephew of a person, including a person's corresponding in-laws and step-relations. (« membre de la famille immédiate ») "leased lands" means the land leased under a forage or cropping lease. (« bien-fonds loué ») "nomination certificate" means a certificate issued by the director under subsection 8.2(7). (« certificat de nomination ») "permit" means a cropping permit, a grazing permit or a hay permit. (« permis ») "permitted lands" means the land in respect of which a permit holder has cropping, grazing or haying privileges under a cropping, grazing or hay permit. (« bien-fonds visé par un permis ») "renewable permit" means a permit that is issued in accordance with clause 7(2)⁠(a). (« permis renouvelable ») "Schedule" means the Schedule to this regulation. (« annexe ») M.R. 126/2019 ; 126/2020 ; 99/2023 PROHIBITION Prohibition 2 No person shall cultivate Crown lands, or graze livestock or cut hay on Crown lands, except under the authority of an agricultural lease or permit. ELIGIBILITY Eligibility for leases or permits 3(1) The following are eligible to hold an agricultural lease or permit: (a) an individual who is an adult Canadian citizen or permanent resident of Canada within the meaning of the Immigration and Refugee Protection Act (Canada); (b) a partnership, if each partner meets the requirements set out in clause (a); (c) a band; (c.1) a non-profit organization, as defined in the Income Tax Act (Canada), that principally represents the interests of one or more bands, individuals of Métis descent or holders of aboriginal or treaty rights; (d) a forage cooperative, if the cooperative is authorized by law to carry on business in Manitoba and each member of the cooperative meets the requirements of clause (a); (e) a Hutterite colony or other similar organization, or a corporation owned by a Hutterite colony or other similar organization; (f) a corporation, other than a corporation described in clause (d) or (e), if the corporation is authorized by law to carry on business in Manitoba and each of its shareholders meets the requirements of clause (a). 3(2) A person or entity must not participate in an auction or submit an application for an agricultural lease or permit if they are ineligible to hold an agricultural lease or permit. M.R. 126/2019 ; 126/2020 ; 99/2023 Obtaining an agricultural lease or permit 4 Before participating in an auction, an applicant must submit a registration form to the director that includes (a) a declaration of the applicant's eligibility to participate in the auction; and (b) any other information required by the director. M.R. 126/2019 AUCTIONS AND APPLICATIONS Allocating lands 4.1 If the director determines that agricultural Crown lands are suitable and available for leasing or permitting, the director may make the lands available by auction (section 4.2) or application (section 4.4). M.R. 126/2019 Auctions 4.2(1) When making agricultural Crown lands available by auction, the director may issue any type of agricultural lease or permit for the lands, including a renewable permit or a casual permit. 4.2(2) Before holding an auction, the director must (a) determine the lands to be made available for leasing or permitting, and the type of agricultural lease or permit to be issued; (b) set the date, time and location of the auction; (c) set the rules of the auction, including setting the reserve bid in accordance with subsection (3); and (d) provide 30 days' notice of the auction on a government website, and, if possible, a newspaper circulating in the area in which the lands are located. 4.2(3) The reserve bid in an auction is (a) for a cropping lease or a cropping permit, the total of $200 and up to 2% of the assessed value of the lands that are suitable and available for cultivation; or (b) for all other agricultural leases and permits, $200. M.R. 126/2019 ; 126/2020 Successful bidder 4.3 The successful bidder at an auction must immediately pay, (a) for a cropping lease or a cropping permit, (i) the winning bid amount, (ii) the amount fixed by the minister under subsection 7(4) of the Act in lieu of real property taxes, and (iii) any other amount that may be payable under the terms and conditions of the lease or permit; or (b) for any other agricultural lease or permit, the winning bid amount and an amount equal to the annual amount payable under subsection 9(1). M.R. 126/2019 ; 126/2020 Applications 4.4(1) When making agricultural Crown lands available by application, the director must not issue any type of agricultural lease or permit for the lands other than a casual permit. 4.4(2) An application must be in the form and include the information required by the director. 4.4(3) When issuing a casual permit by application before April 1 in a year, the director must issue the permit by randomly selecting a name from a list of all applicants who have submitted a completed application. 4.4(4) When issuing a casual permit by application on or after April 1 in a year, the director must issue a casual permit to the first applicant from whom the director receives a completed application. M.R. 126/2019 LEASES AND PERMITS Issuance of lease or permit 5 The director may issue an agricultural lease or permit subject to any terms and conditions that the director considers appropriate and that are consistent with this regulation and, if applicable, the rules of the auction for the lease or permit. M.R. 126/2019 Lease term 6 Subject to sections 6.1 and 6.2, the director may issue a forage lease or a cropping lease with a term of up to 15 years. M.R. 126/2019 ; 126/2020 ; 99/2023 Renewal of forage leases issued before October 1, 2019 6.1(1) A forage lease may be renewed in accordance with this section. 6.1(2) On application by the holder, the director may renew a forage lease with a term of up to 15 years if (a) the lease was first issued before October 1, 2019; (b) the director determines that the leased lands are suitable and available for continued use under the lease; and (c) during the term of the lease, the holder did not contravene this regulation or the terms and conditions of their lease. 6.1(3) An application under subsection (2) must be received by the director no later than June 30 of the year in which the lease is to expire. 6.1(4) Subject to subsection (5), no fee is payable for renewing a forage lease. 6.1(5) The fee for renewing a forage lease in any year after 2034 is to be determined in accordance with the Schedule. 6.1(6) A renewed forage lease is subject to the terms and conditions imposed by the director. 6.1(7) For certainty, the director may renew a forage lease under this section for any number of consecutive terms, including when the holder is a transferee of such lease. M.R. 126/2020 ; 99/2023 Extension of forage leases issued on or after October 1, 2019 6.2(1) A forage lease issued on or after October 1, 2019, may be extended for five years in accordance with this section. 6.2(2) To extend a forage lease, the holder must (a) apply to the director during the period beginning on January 1 of the year in which the lease is to expire and ending on June 30 of that year; (b) include a copy of a forage management plan for the land prepared and signed by an agrologist who is registered with the Manitoba Institute of Agrologists under The Agrologists Act that (i) was prepared at least five years before the expiry of the initial term of the lease, and (ii) sets out recommended practices for the sustainable management of the leased lands to preserve or enhance their forage capacity, as determined by the agrologist; and (c) provide evidence that the holder acted in substantial compliance with the recommendations of the forage management plan since the date it was prepared and continues to act in substantial compliance with it. 6.2(3) The director may grant an extension if (a) the lease term has not previously been extended under this section; (b) during the term of the lease, the holder did not contravene this regulation or the terms and conditions of the holder's lease; and (c) in the opinion of the director, the holder is in substantial compliance with the forage management plan and has been since the date it was prepared. 6.2(4) No fee is payable for extending a forage lease. M.R. 99/2023 Cropping leases not renewable 6.3 For certainty, a cropping lease is not renewable under section 6.1 and may not be extended under section 6.2. M.R. 99/2023 Permit term 7(1) The director may issue a permit with a term of up to one year, but each permit expires on December 31 following the date of issuance. 7(2) Subject to subsection (2.1), the director may issue a permit as either (a) a renewable permit, which may be renewed in accordance with this section; or (b) a casual permit, which is not eligible for renewal. 7(2.1) A cropping permit must not be issued as a renewable permit. 7(3) The director may renew a renewable permit if (a) the director determines that the permitted lands under the permit are suitable and available for continued grazing or haying; and (b) during the term of the permit, the holder did not contravene this regulation or the terms and conditions of their permit. 7(4) The director must not renew a renewable permit more than 14 times if the permit was issued on or after October 1, 2019. 7(4.1) Subject to subsection (4.2), no fee is payable for renewing a permit. 7(4.2) The fee for renewing a permit issued before October 1, 2019, in any year after 2034 is to be determined in accordance with the Schedule. 7(5) When renewing a permit, the director may amend the terms and conditions of the permit as the director considers appropriate and the renewed permit is subject to the amended terms and conditions. M.R. 126/2019 ; 126/2020 Transfer of lease or permit 8(1) With the approval of the director, an agricultural lease or permit may be transferred if the following conditions are met: (a) the director must be satisfied that the holder has not contravened this regulation or the terms and conditions of the holder's lease or permit during its term; (b) neither the holder nor the recipient is, at the time of the transfer, subject to a penalty under section 18.1; (c) the holder has paid the fee for the transfer, determined in accordance with the Schedule; (d) the recipient is an eligible holder in respect of the applicable lease or permit or, in the case of the transfer of an ownership interest in the holder of such a permit or lease, the holder will continue to be an eligible holder after the transfer of ownership interest; (e) in the case of a transfer of a forage lease or a renewable permit issued before October 1, 2019, a cropping lease or an ownership interest in the holder of such a permit or lease, the recipient meets the applicable requirements of subsection (2) or (3); (f) in the case of the transfer of a forage lease or a renewable permit issued on or after October 1, 2019, or an ownership interest in the holder of such a permit or lease, the recipient meets the applicable requirements of subsection (3.1) or (3.2). 8(2) For a forage lease or a renewable permit issued before October 1, 2019, or a cropping lease to be transferred, the holder must be an individual, a partnership or a corporation and, (a) if the transferor is an individual, the recipient must be (i) an immediate family member of the transferor, or (ii) a partnership or corporation, where each individual with an ownership interest in the partnership or corporation is the transferor or an immediate family member of the transferor; or (b) if the transferor is a partnership or a corporation, the recipient must be (i) an immediate family member of an individual with an ownership interest in the transferor, or (ii) a partnership or corporation, where each individual with an ownership interest in the partnership or corporation (A) has an existing ownership interest in the transferor, or (B) is an immediate family member of an individual with an ownership interest in the transferor. 8(3) For an ownership interest in a partnership or corporation which holds a forage lease or a renewable permit issued before October 1, 2019, or a cropping lease to be transferred, the recipient must be an individual (a) who meets the requirements of clause 3(1)⁠(a); and (b) who (i) has an existing ownership interest in the partnership or corporation, or (ii) is an immediate family member of an individual with an ownership interest in the transferor. 8(3.1) For a forage lease or a renewable permit issued on or after October 1, 2019, to be transferred, the recipient must be an eligible holder. 8(3.2) For an ownership interest in a partnership, cooperative or corporation which holds a forage lease or a renewable permit issued on or after October 1, 2019, to be transferred, the recipient must be an individual who meets the requirements of clause 3(1)⁠(a). 8(4) For the purpose of subsection 7(4), the recipient is deemed to have the same number of renewals as the holder on the day the permit is transferred. 8(5) When transferring a permit under this section, the director may amend the terms and conditions of the permit as the director considers appropriate and the transferred permit is subject to the amended terms and conditions. M.R. 126/2019 ; 126/2020 ; 99/2023 Nomination certificate 8.1(1) The holder of a forage lease issued before October 1, 2019, or a renewable permit issued before October 1, 2019, may apply to the director for a nomination certificate. 8.1(2) Subject to sections 8.2 to 8.4, (a) a holder who receives a nomination certificate may nominate an eligible holder to succeed the holder; and (b) an eligible holder who is nominated is entitled to be issued a new lease or permit under section 6 or 7, as applicable, except that the new lease or permit is deemed to be a lease or permit issued on or after October 1, 2019, for the purpose of this regulation. M.R. 99/2023 Application and decision re nomination certificate 8.2(1) A holder of a forage lease or renewable permit who makes an application for a nomination certificate must (a) make the application in writing; and (b) include an acknowledgement that, once the application is made, (i) it is irrevocable, and (ii) the holder's lease or permit will be cancelled if the application is denied by the director. 8.2(2) On receipt of an application, the director must review it and decide whether to approve or deny the application. 8.2(3) In reviewing an application, the director must have due regard for the following: (a) any obligation of the Crown pursuant to or as contemplated by an agreement made between a band and the Government of Canada in settlement of a treaty land entitlement of the band and an agreement made between the Government of Manitoba and the Government of Canada to enable the Government of Canada to fulfill its treaty obligations to the band as it applies to the leased or permitted lands; (b) the effects, if any, that issuance of the nomination certificate may have on the exercise of aboriginal or treaty rights. 8.2(4) On completing the review, the director must approve the application unless the director is satisfied that (a) the holder contravened this regulation or the terms and conditions of the holder's lease or permit during its term; (b) the holder is subject to a penalty under section 18.1; or (c) there is a consideration described in subsection (3) which prevents the director from approving the application. 8.2(5) The director must make their decision and provide notice of their decision to the holder as soon as reasonably practicable. 8.2(6) If the director denies the application, the holder's lease or permit is cancelled in accordance with clause 18(1)⁠(a.1). 8.2(7) If the director approves the application, the director must issue the applicant a nomination certificate as soon as reasonably practicable after making the decision. M.R. 99/2023 Nomination certificate is time-limited 8.3 A nomination certificate is valid for two years after the date it is issued. M.R. 99/2023 Nomination 8.4(1) The holder of a nomination certificate may nominate an eligible holder to succeed the holder by making an application in writing to the director. 8.4(2) The director must accept the application if the nomination certificate has not expired on the date the director receives the application and the nominee (a) is an eligible holder in respect of the applicable lease or permit; (b) is not subject to a penalty under section 18.1; and (c) pays a fee for the lease or permit, as determined in accordance with the Schedule. 8.4(3) If the nomination is accepted, (a) the original holder's lease or permit is cancelled effective December 31 in the year of the nomination; and (b) effective January 1 of the following year, a new lease or permit is to be issued to the applicant in accordance with section 6 or 7, as applicable, and the new lease or permit is deemed to be a lease or permit issued after October 1, 2019, for the purpose of this regulation. 8.4(4) If the nominee under subsection (1) is not issued a new lease or permit, (a) the existing lease or permit continues; and (b) the original holder may nominate another nominee under this section until the nomination certificate expires. M.R. 99/2023 Nomination — temporary exception 8.5(1) A holder of a forage lease issued before October 1, 2019, or a renewable permit issued before October 1, 2019, who applies for a nomination certificate under subsection 8.1(1) between January 1, 2024, and December 31, 2026, is not prohibited under clause 8.2(4)⁠(a) from being issued the certificate despite having sublet the leased or permitted lands during the term of the lease or permit. 8.5(2) If the holder referred to in subsection (1) is issued a nomination certificate and does not nominate an eligible holder to succeed the holder within two years after the date the nomination certificate is issued, the director is to cancel the holder's lease or permit in accordance with clause 18(1)⁠(a). M.R. 28/2024 ; 91/2025 Annual amount payable 9(1) The annual amount payable under an agricultural lease or permit is the total of the following amounts: (a) the total of the annual rent or annual fees for the leased lands or the permitted lands, as the case may be, as determined under section 10 of this regulation; (b) the amount fixed by the minister under subsection 7(4) of the Act in lieu of real property taxes; (c) any other amount that may be payable under the terms and conditions of the lease or permit. 9(2) Except as otherwise provided in this regulation or in the terms and conditions of the lease or permit, the holder of a lease or permit must pay the amount under subsection (1) within 30 days after receiving an invoice from the director. 9(3) The holder of a lease or permit is deemed to have received an invoice five days after the day it was mailed to the address specified in the holder's registration or application form. M.R. 126/2019 Annual rent or fee 10(1) Subject to sections 10.1 and 10.2, the annual rent or annual fee payable for an agricultural lease or permit (other than a cropping lease or a cropping permit) is the total of the amount determined using the following formula: annual rent or fee = A × B × 3.5% In this formula, A is the average price of beef, determined by the average sale price per hundred pound weight for the previous 36 months, ending September 30 for 500- to 600-pound heifers and steers in the province as published by Canfax (an operating division of the Canadian Cattlemen's Association); B is the forage capacity of the land in an average year at the time the lease or permit is issued or renewed, as determined by the director. 10(2) Subject to subsection (3), the annual rent or annual fee payable for a cropping lease or a cropping permit is the amount determined by auction, less $200. 10(3) The annual fee payable for a cropping permit issued by application is an amount determined by the director, up to 2% of the assessed value of the cultivated lands to be allocated under the permit. 10(4) For certainty, the forage capacity of the land referred to in the description of B in the formula in subsection (1) is determined at the time of issuance of the lease or permit under section 5 or renewal of the lease under section 6.1, but not on extension of the lease under section 6.2. M.R. 126/2019 ; 126/2020 ; 169/2022 ; 99/2023 ; 110/2024 Temporary adjustment in annual rent or fee 10.1 The annual rent or annual fee for an agricultural lease or permit (other than a cropping lease or a cropping permit) for a year listed in the first column of the following table is the amount determined in accordance with subsection 10(1) reduced by the percentage set out opposite in the second column: 2023 50% 2024 55% Annual rent or fee for 2025 and 2026 10.2 The annual rent or annual fee for an agricultural lease or permit (other than a cropping lease or a cropping permit) for 2025 and 2026 is the total of the amount determined using the following formula: annual rent or fee = $3.66 × B In this formula, B is the forage capacity of the land in an average year at the time the lease or permit is issued or renewed, as determined by the director. M.R. 110/2024 ; 91/2025 Adjustment — change in use or access 10.3(1) Despite subsection 10(4) and section 10.2, the director may decrease the annual rent or annual fee for an agricultural lease or permit (other than a cropping lease or a cropping permit) by an amount proportionate to a decrease in forage capacity of the land due to a change in use of or access to the land initiated by the government. 10.3(2) The decrease to the annual rent or annual fee takes effect on January 1 of the year after the year in which the change occurred. M.R. 91/2025 11 to 15 [Repealed] M.R. 126/2019 GENERAL PROVISIONS Duties 16(1) An agricultural lease or permit holder must (a) ensure that the leased or permitted lands are cultivated, grazed or hayed in accordance with the lease or permit for the full term of the lease or permit, except for any time period that may be authorized by the director; (b) ensure that any activities under clause (a) are done in a manner that supports the long-term productivity and sustainability of the lands and are appropriate in the applicable climatic conditions; (c) during the entire term of the lease or permit, maintain the lawful right to physically access the leased or permitted lands; (d) comply with this regulation and all terms and conditions of the lease or permit; and (e) provide, on the request of the director, any information relating to the holder's compliance with this regulation or the terms and conditions of the lease or permit. 16(2) A permit holder must not (a) break or cultivate the permitted lands, unless authorized by the permit or the director in writing; (b) interfere with the public right of passage through the permitted lands over a portage, road or trail in existence on the date the permit was first issued, and, if the lands are fenced, the holder must erect gates across such a portage, road or trail; (c) cut timber on the permitted lands without a permit issued under The Forest Act ; and (d) except for any temporary structure necessary to protect the permit holder's livestock, erect any building or other structure on the permitted lands without first obtaining the written consent of the director and all approvals that may be required by any level of government. 16(3) A grazing permit holder must (a) ensure that livestock being grazed are confined to the permitted lands; and (b) comply with the requirements of The Animal Care Act and the regulations under that Act. 16(4) In addition to complying with the other provisions of this section, the following must be actively involved in cultivating crops, grazing livestock, or haying on the leased or permitted lands: (a) if the holder of the lease or permit is an individual, the individual; (b) if the holder of the lease or permit is a partnership, each member of the partnership; (c) if the holder of the lease or permit is a forage cooperative, each member of the cooperative; (d) if the holder of the lease or permit is a corporation, each shareholder of the corporation; (e) if the holder of the lease or permit is a band, at least one member of the band; (f) if the holder of the lease or permit is a Hutterite colony or other similar organization, a corporation owned by a Hutterite colony or other similar organization, at least one member of the Hutterite colony or organization. M.R. 126/2019 ; 126/2020 Withdrawal of land 17(1) The director may, for any purpose, withdraw any portion of the land to which a permit applies by giving the permit holder 30 days' written notice, and after the expiration of the notice the permit ceases to apply to the withdrawn land. 17(2) When land is withdrawn under subsection (1), the permit holder (a) is entitled to a refund of any fee paid insofar as it was paid for the withdrawn land, from the date the land was withdrawn until the final day for which the fee was paid; and (b) may, within 30 days after the day the permit holder was notified of the withdrawal, remove any improvements the holder has made on the land. After the 30-day period, all improvements remaining on the land revert or are forfeited to the Crown. M.R. 126/2019 Cancellation of lease or permit 18(1) For the purpose of subsection 7.3(2) of the Act, the director may (a) cancel an agricultural lease or permit without notice to the holder, if (i) the director is of the opinion that the holder has contravened, or allowed a contravention of, this regulation or any term or condition of the lease or permit, or (ii) the holder has failed to pay any amount due under or in respect of the lease or permit, including a fee set out in the Land Administration Fees Regulation, Manitoba Regulation 216/89; (a.1) cancel an agricultural lease or permit with notice under subsection 8.2(5) where the holder applied for the right to nominate an eligible holder under section 8.2 and the director denied the application; or (b) cancel a permit with 30 days' written notice to the holder. 18(2) When a lease or permit is cancelled under clause (1)⁠(a), all rents and fees paid in connection with the lease or permit are forfeited and the holder is not entitled to compensation under section 19 for any improvements made to the leased or permitted lands. 18(2.1) When a lease or permit is cancelled under clause (1)⁠(a.1), (a) the holder is entitled to a refund of the fees paid in respect of the remaining term of the lease or permit; and (b) the holder is not entitled to compensation under section 19 for any improvements made to the leased or permitted lands. 18(3) When a permit is cancelled under clause (1)⁠(b), the holder of the permit is entitled to a refund of the fees paid in respect of the remaining term of the permit. M.R. 126/2019 ; 99/2023 Other actions 18.1 In addition to any other penalty under the Act or any other Act, the director may prohibit a person, band or organization from participating in an auction or decline to receive an application from a person, band or organization for an agricultural lease or permit for a period not longer than five years if the person, band or organization (a) contravenes clause 16(1)⁠(a) (actively farming land); (b) contravenes clause 16(1)⁠(b) (sustainably farming land); (c) provides false or misleading information to the director under section 4, subsection 4.4(2) or clause 16(1)⁠(e); (d) fails to provide information when requested to do so by the director under clause 16(1)⁠(e); (e) contravenes subsection 16(4) (holder to be engaged in farming); or (f) fails to make a payment under this regulation in the time specified. M.R. 126/2019 Improvements 19(1) The following definitions apply in this section. "appraisal report" means a written appraisal of the fair market value of improvements on lands prepared by an appraiser on the list described in subsection 19(4.2). (« rapport d'évaluation ») "former holder" means an eligible holder that held an agricultural lease or permit (other than a casual permit) which has expired or was cancelled. (« ancien titulaire ») "new holder" means the next eligible holder to hold an active agricultural lease or permit (other than a casual permit) in relation to the leased or permitted lands of a former holder. (« nouveau titulaire ») 19(2) Subject to subsection (2.1), a former holder may, within 30 days after the expiry or cancellation of their lease or permit, remove any improvements made by the former holder to the leased or permitted lands unless the lease or permit was cancelled under clause 18(1)⁠(a). 19(2.1) If the former holder is not able to remove the improvements made by the former holder to the leased or permitted lands within 30 days after the expiry or cancellation due to circumstances beyond the former holder's control, the former holder may apply to the director requesting an extension and the director may extend the time period. 19(2.2) An application for an extension under subsection (2.1) must (a) be made before the expiry or cancellation of the lease or permit in a form acceptable to the director; and (b) include the reason for the request. 19(3) Any improvements to the leased or permitted lands that are not removed in accordance with subsection (2) or (2.1) revert or are forfeited to the Crown and, subject to this section, no compensation is required to be paid in respect of the improvements. 19(4) Subject to subsections 18(2) and (2.1), if the new holder is issued an agricultural lease or permit within two years after the expiry or cancellation of the former holder's lease or permit, the former holder is entitled to compensation from the new holder for any remaining improvements made by the former holder to the leased or permitted lands if the former holder meets the requirements set out in subsection (4.1). 19(4.1) To be entitled to compensation, the former holder must, before September 1 in the year in which their lease expires or is otherwise cancelled, (a) obtain an appraisal report of the improvements to the leased or permitted lands; and (b) provide the director with the following: (i) a copy of the appraisal report, (ii) written confirmation of the following: (A) that the improvements will remain on the leased or permitted lands and a description of the improvements, (B) the amount that the former holder is requesting as compensation for the improvements, which must be either the value set out in the appraisal report or a lesser value specified by the former holder, (iii) the former holder's contact information to be used for the purpose of the compensation claim and authorization to provide the contact information to any new holder. 19(4.2) For the purpose of subsection (4.1), the director must maintain a list of appraisers that are acceptable to the director and publish that list on a government website. 19(4.3) If an auction is held for the leased or permitted lands within two years after the expiry or cancellation of the former holder's lease or permit, the director must (a) include the amount of compensation for the improvements to be paid to the former holder in the information published under subsection 4.2(2); and (b) within 30 days after the auction, provide the former holder and the new holder with each other's contact information at the mailing address or electronic address provided by them for this purpose. 19(4.4) If all of the requirements of this section have been met and the improvements remain on the leased or permitted lands, the new holder must pay the amount of compensation for the improvements requested under subclause (4.1)⁠(b)⁠(ii) to the former holder within 60 days after the auction. 19(4.5) For certainty, the former holder is not entitled to compensation from the new holder in relation to the improvements in any other circumstance and the Crown has no obligation to compensate the former holder. 19(5) [Repealed] M.R. 99/2023 19(6) For certainty, a casual permit holder is not, (a) on the expiry of their permit, (i) authorized to remove any improvements made to the permitted lands, or (ii) entitled to compensation for improvements to the lands from a new holder; or (b) on receiving a casual permit, required to pay compensation for improvements to the lands to a former holder. M.R. 126/2019 ; 99/2023 ; 110/2024 ; 91/2025 MISCELLANEOUS PROVISIONS Crown not liable for damage 20 Every permit is subject to the condition that the permit holder exempts the Crown from liability for any damage that may be caused to the permitted lands, or to any structure or improvement on the permitted lands, by the raising or lowering, through natural or artificial means, of the level of a body of water. Manitoba Regulation 216/89 applies 21 For greater certainty, the tariff of fees set out in the Schedule to the Land Administration Fees Regulation applies in respect of leases and permits issued under this regulation. M.R. 99/2023 Special leases 22(1) Upon the written approval of the minister, the director may issue a special lease of agricultural Crown lands for (a) research purposes; or (b) land and environmental stewardship purposes. 22(2) A special lease may (a) be for any term not exceeding 21 years that the director considers appropriate; (b) contain terms and conditions that waive or vary any requirement of this regulation, including, without limitation, a term that waives all or any portion of the annual amounts otherwise payable for a lease under subsection 9(1); and (c) contain any additional terms and conditions that the director considers appropriate. 23 to 27 [Repealed] M.R. 126/2019 TRANSITION 27.1 [Repealed] M.R. 126/2019 ; 126/2020 ; 99/2023 27.2 to 27.4 [Repealed] M.R. 126/2019 ; 126/2020 Leases and permits issued before January 1, 2024 27.5(1) For the determination of the annual rent or annual fee for an agricultural lease or permit (other than a cropping lease or a cropping permit) that was issued before January 1, 2024, the forage capacity of the land as determined under B in the formulas in subsection 10(1) and section 10.2 is fixed at the forage capacity for the land that was last determined under subsection 10(1) as it read immediately before the coming into force of this section, subject to any adjustment made by the director under section 10.3. 27.5(2) If a lease or permit referred to in subsection (1) is renewed under section 6.1, the annual rent or annual fee is to be determined under the provisions of this regulation in force at the time of the renewal. M.R. 99/2023 ; 110/2024 ; 91/2025 Improvements — leases and permits expired before January 1, 2024 27.6 Section 19, as it read immediately before the coming into force of this section, continues to apply to both a former holder of an agricultural lease or permit that expired before January 1, 2024, and a new holder within the meaning of that section. M.R. 99/2023 Improvements — leases and permits expiring in 2024 27.7 For an agricultural lease or permit that expires or is otherwise cancelled on or after January 1, 2024, but before January 1, 2025, the deadline in subsection 19(4.1) for meeting the requirements set out in that subsection is extended until the earlier of (a) the day that is 60 days before the day the notice of the auction for the leased or permitted lands is published under subsection 4.2(2); and (b) September 2, 2025. M.R. 110/2024 REPEAL AND COMING INTO FORCE Repeal 28 The following regulations are repealed: (a) the Agricultural Crown Lands Grazing and Hay Permits Regulation , Manitoba Regulation 288/88; (b) the Agricultural Crown Land Leases Regulation , Manitoba Regulation, 168/2001. Coming into force 29 This regulation comes into force on January 1, 2018. SCHEDULE (previous) [Repealed] M.R. 126/2019 SCHEDULE (Sections 6.1, 7, 8 and 8.4) FEES Definition 1 In this Schedule, "consumer price index" means the "all-items" Consumer Price Index for Manitoba as published monthly by Statistics Canada. Fees 2 Subject to an adjustment under section 3 of this Schedule, the fee for a provision referred to in Column 1 of the following table is as set out opposite in Column 2: Column 1 Provision Column 2 Fee Subsection 6.1(5) (renewing a forage lease) $1,200 Subsection 7(4.2) (renewing a renewable permit) $80 Clause 8(1)⁠(c) (transfer of lease or renewable permit) $200 Clause 8.4(2)⁠(c) (new lease or permit issued after nomination) $1,200 Adjustment formula 3 In each year after 2034, a fee under section 2 of this Schedule is adjusted in accordance with the following formula: A = B × (C/D) In this formula, A is the adjusted fee; B is the fee amount as set out in Column 2 of the table in section 2 of this Schedule; C is the consumer price index for December in the year preceding the year in which the adjustment is being made; D is the consumer price index for December 2020. M.R. 99/2023 Fees rounded to nearest dollar 4 If required, an adjustment under section 3 of this Schedule is to be rounded to the nearest dollar. M.R. 126/2020