Agricultural Land Reserve

The ALR covers 4.6 million hectares (11.4 million acres). About three quarters of BC's total land is located above a thousand metres in elevation, and the province's mountainous geography means a relatively small share of its land has an agricultural capability. Approximately 46% of ALR land is under private ownership, and 54% is under public land ownership (provincial, municipal, or federal government). == History ==

Motivation for establishment Before 1973, an estimated 4000 to 6000 hectares of prime agricultural land was lost each year to urbanization in British Columbia. All land in Classes 1 to 4 from the Canada Land Inventory (CLI) survey that was not already developed was included in the ALR. Class 5 and 6 land was included if it could effectively be used in conjunction with Class 1 to 4 land, and Class 7 land was included if excluding it might allow undesirable intrusion of incompatible uses into agricultural areas. Enough land was excluded from the ALR to allow for about 5 years of urban growth. The ALC makes decisions chiefly on land removal (exclusion) or addition (inclusion); subdivision; and non-farm land use. On May 29, 2014, the BC Liberal government of Christy Clark split the ALR into two zones: Zone 1 (Island, Okanagan, South Coast) and Zone 2 (North, Kootenay, Interior). The ALR regulations were viewed as a burden to farmers who owned agricultural land of poor capability. ==Taxation of ALR land==

School tax exemption Whether or not their land is used for farming, there is a 50% tax exemption to ALR land owners for school, hospital, and other property taxes (for example, TransLink taxes in Metro Vancouver). A Kwantlen Polytechnic University study notes this tax exemption encourages ownership but not farming of ALR land. A study of the Greater Vancouver area (Metro Vancouver) finds the main beneficiaries of the exemption are properties in the ALR classified as "Residential". Since these properties are not used for farming, the study recommends removal of the exemption so as to maintain equity across residential land owners inside and outside of the ALR. Property taxes Property tax tends to be lower on land located within the ALR, even if the land is not farmed. This is because a property is assessed based on the market value of the land taking into account its "highest and best use" and comparable rural property values. A property's highest and best use is constrained by ALR land use and subdivision restrictions. Therefore, land within the ALR typically has a lower value, even when zoned Residential, Commercial, or Industrial. A study for Metro Vancouver found that for a 5-acre property assessed as Residential in Langley (that does not have "farm status") which pays $13,656 in property tax, a comparable property assessed as Residential in the ALR would pay $3,880 in property tax. The study notes that questions of equity among taxpayers have emerged, since residential and commercial uses within the ALR create demand for services that are financed by local governments through property taxes (utilities, transit, police, fire and emergency services). ==Agricultural-industrial structures on the ALR==

Structures and farm-related commercial and industrial uses are restricted, but permitted in the ALR to provide agriculture-related economic opportunities for farmers. A 2020 report prepared for the BC government recommended setting aside up to a maximum of one quarter of one percent of the province's ALR land to create a new category of agricultural-industrial farmland. To counter concerns about allowing structures on arable farmland, converted land would be of low soil quality, ill-suited for farming (CLI Classes 4-7). == Controversies ==

Establishment of the ALR Thousands of farmers protested the creation of the ALR, because they opposed the restrictions the ALR imposes on what landowners can do with their own land. The restrictions interfere with their private property rights, and thereby reduce land values. Forty years later, support among farmers and ranchers became more widespread, though not unqualified, according to the executive director of the B.C. Agriculture Council. "Monster" houses In 2017, a Richmond city councillor said he did not want "big houses on small farms." So-called "monster homes" were being built on Richmond's ALR land, where the average house size surged to in 2015, compared with in 2010. Also, while land-use bylaws do not allow hotels on agricultural land, there were reports of large buildings being constructed in Richmond that were essentially private luxury hotels. The B.C. Farmland Owners Association opposed the law saying the government did not consult them adequately, and that a limit of 500 square metres would not allow enough space for what are often family-owned businesses. Restrictions were later eased so that, effective 31 December 2021, as well as a principal residence with floor area of 500 m2 or less, property owners were allowed one residence with a total floor area of 90 m2 or less (186 m2 on a property 40 hectares or larger), if permitted by local government bylaw. Further, a secondary suite could be located in the principal residence. As before, the ALC could approve additional residences if they were for farm use. The study found significant differences between market prices and the provincial assessments for 122 properties examined. In one example, a property located on the ALR paid about $5,300 in property tax while a residential property in the same municipality with the same market value would pay roughly $77,000. ==See also==