Assignment Registration Fees for Agriculture Dispositions
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Several types of agriculture dispositions can be assigned with the approval of government, if certain requirements are met.
Grazing Leases
There is little public land available for new grazing leases. Grazing leases are almost always renewed/reissued if the leaseholder has properly managed the land. Therefore, the most common method of obtaining a grazing lease is through an existing leaseholder assigning it. The amount paid for the grazing lease rights is privately negotiated.
When a lease is assigned in this way, the government charges a fee to register the assignment.
Until 1976, the provincial government received 50 per cent of the amount received by the previous leaseholder when he/she assigned the lease. After 1976, the government established assignment registration fees through Regulations under the Public Lands Act. The fees are now set out in the Act. The fees vary depending on the transfer situation, as described below.
Arms Length Transfers
This is a transfer between “willing” parties (not family members). Neither party can be in debt to the Minister of Sustainable Resource Development, and the assignee (person receiving the lease) must be eligible to obtain a grazing lease. The assignor (person giving up the lease) must have held at least two-thirds of the land for three years. The assignment registration rates are based on the number of Animal Unit Months (AUMs) the lease provides. An AUM is the amount of forage required for one month by one mature cow with or without a calf. This is approximately 1,000 pounds of forage dry matter. The assignment fees per AUM are:
Zone A1 (SE Alberta) $50.00
Zone A2 (SW Alberta) $100.00
Zone B (central Alberta) $50.00
Zone C (northern Alberta) $5.00
Family Transfers
This transfer is between members of the immediate family, as specified in the Regulations. The government assignment registration fee is $100.00.
Estate Transfers
The transfer occurs when the beneficiary of a lessee’s estate inherits the grazing lease. The government assignment registration fee is $100.00.
Family Corporation Transfers
This transfer can occur within a corporation through shares held by the lessee and his/her next-of-kin, as defined in the Disposition and Fees Order. The government assignment registration fee is $100.00.
Other Corporate Transfers
Under Section 114.1(3) a corporation is required to pay an assignment fee based on the amount of change in beneficial ownership resulting from a transfer, redemption or change in allotment of shares.
Grazing Associations/Cooperatives
Any changes in the membership do not result in assignment registration fees being levied. However, a change in the status of the association or cooperative, such as disbanding or transferring the lands out, is considered an “arm’s length transfer” and is subject to the appropriate transfer fees for grazing leases.
Grazing Permits
Transfer criteria for grazing permits are similar to those listed under Grazing Leases. Assignment registration fees vary depending on the transfer situation, as described below:
Arms Length Transfers
The assignment registration fee per AUM is the greater of,
(i) a sum equal to twice the current year’s rent on the area assigned, and
(ii) the minimum annual rent for a grazing permit.
Family Transfers/Family Corporation Transfers
The assignment registration fee per AUM is the greater of,
(i) a sum equal to the current year’s rent on the area assigned, and
(ii) the minimum annual rent for a grazing permit.
Estate Transfers
The assignment registration fee is $25 for the first quarter section (or part of quarter section) plus $5 for each additional complete or partial quarter section.
Grazing Licenses
Grazing Licenses are assignable and the fees to register the assignment are the same as those charged for grazing leases.
Cultivation Dispositions
(Farm Development Leases & Cultivation Permits)
Public land under disposition for cultivation purposes can be assigned. The assignment registration fee is $0.30 per acre, with a minimum fee of $25.
Estate Transfers
The assignment registration fee is $25 for the first quarter section (or part of quarter section) plus $5 for each additional complete or partial quarter section.
This information is intended for convenience of reference only. The current Public Lands Act and regulations should be consulted for all purposes on interpreting and applying the law.
Download This Information Sheet
For updated information
Contact any of the offices below:
Alberta Sustainable Resource Development
Land Dispositions Branch
South Tower, Petroleum Plaza
9915 - 108 Street NW
Edmonton, Alberta T5K 2G8
Telephone: (780) 427 570
Rangeland Management Branch
South Tower, Petroleum Plaza
9920 - 108 Street NW
Edmonton, Alberta T5K 2M4
Telephone: (780) 427 3595
OR call the Lands Division office in your area.
