The Agricultural Land Commission and Subdivisions

September 17, 2024

Navigating the complexities of land management in British Columbia’s Agricultural Land Reserve (ALR) can be a daunting task for landowners and farmers, particularly when it comes to subdividing property. While there are valid reasons for wanting to subdivide—whether for family succession, financial planning, or operational efficiency—the process is tightly regulated by the Agricultural Land Commission (ALC) to ensure that agricultural land is preserved for future generations. For an overview of how RLR Lawyers can help with ALC matters like subdivision applications see:  Agricultural Land Commission matters.

In this article, we’ll explore the ALC’s requirements for subdivision applications, provide a summary of key decisions that highlight when these applications are approved or rejected, and offer some practical considerations for landowners contemplating this path. Understanding these elements is crucial for making informed decisions that align both with personal goals and the ALC’s overarching mission to protect and enhance BC’s agricultural land base.

What is the ALC

The ALC in British Columbia is an independent administrative tribunal dedicated to preserving agricultural land and encouraging farming in the province. Established in 1973, the ALC administers the ALR, a land use zone that restricts non-agricultural uses of designated farmland. The ALC is responsible for reviewing applications for land use changes, ensuring that agricultural lands are protected for future generations. It plays a critical role in balancing development needs with the preservation of vital agricultural resources in BC.

Purpose of the ALC

The ALC, as outlined in Section 6 of the Agricultural Land Commission Act, has the primary purposes of preserving agricultural land, encouraging farming on this land in collaboration with various communities, and working with local governments, First Nations, and other governmental bodies to support farm use and agriculture-compatible activities. In fulfilling these purposes, the ALC must prioritize protecting and enhancing the size, integrity, and continuity of the Agricultural Land Reserve (ALR) and ensuring that the land within the ALR is used primarily for farming.

Subdivision Applications

A person must not subdivide agricultural land unless permitted by the ALC after an application, or permitted under section 3 of the ALR General Regulation: ALCA, s. 21(1). An owner of agricultural land may apply to the ALC for permission under section 25 of the ALCA to subdivide land in the ALR. Under section 3 of the Agricultural Land Commission Act, certain subdivisions of agricultural land are permitted, provided specific conditions are met. These conditions are as follows:

• Approval by the Approving Officer:
  • The subdivision must be determined by the approving officer to fall within the allowed types.
  • The officer must endorse the subdivision plan with a certificate in the required form and submit a copy of the endorsed plan to the ALC.
• Permitted Types of Subdivision:

• 1. Consolidation and Boundary Adjustments:
     • Combining two or more parcels into a single parcel by removing common lot lines.
     • Establishing a legal boundary along the Agricultural Land Reserve (ALR) boundary.
     • Resolving building encroachments on property lines without creating additional parcels.
  2. Subdivisions with Specific Conditions:
     • The land involved consists of no more than four parcels, each being at least 1 hectare in size.
     • The subdivision does not increase the number of parcels, and no parcel is reduced to less than 1 hectare.
     • The subdivision allows for boundary adjustments that, in the approving officer’s opinion, enhance farming on the land or improve the use of existing farm structures.

Why a farmer or landowner may want to subdivide

“Subdivision” means the division of land into 2 or more parcels, whether by plan, apt descriptive words or otherwise: Land Title Act, s. 1 “subdivision”. This includes boundary adjustments where no new parcels are created. A farmer or landowner may wish to subdivide their property for the following reasons:

Family Succession Planning

A landowner might want to divide the land into smaller parcels to transfer ownership to multiple family members, ensuring that each heir has a portion of the property.

Financial Reasons

Subdividing a portion of the land could allow the landowner to sell a part of the property to raise capital for reinvestment or to address financial needs.

Operational Efficiency

By adjusting boundaries or consolidating parcels, a landowner could optimize the layout of the property, improving access, irrigation, or land use for more efficient operations.

Encroachment Resolution

If there is a building or structure that encroaches on a property line, subdividing the land might be necessary to legally resolve the issue without affecting the rest of the property.

Partnerships and Joint Ventures

A landowner might want to subdivide land to enter into a partnership or joint venture with another party, where each party would own a specific portion of the land.

Legal and Zoning Compliance

In some cases, subdivisions may be required to align with legal or zoning requirements, particularly when the land is near boundaries of the Agricultural Land Reserve (ALR).

Improvement of Structures

Subdividing land might allow for the creation of parcels that better accommodate existing or planned structures, such as barns, greenhouses, or other buildings.

Environmental Management

Subdividing the land could be part of an environmental strategy, such as creating separate parcels for conservation purposes, water management, or soil preservation, while maintaining active use on other parts of the land.

Retirement Planning

As landowners approach retirement, they might want to subdivide their land to sell off portions while retaining a smaller, more manageable area for continued personal use or hobby farming.

Analysis of ALC Decisions on Subdivision Applications

While every subdivision application has unique facts a review and analysis of several ALC decisions on landowner subdivision applications yields some insights that may help you understand how the applications process works. The examples included below are referenced with the specific decision citations from the ALC, providing clear insights into the considerations in each case. However, if you are thinking about subdividing agricultural property you would be wise to seek legal advice from experienced real estate lawyers. If you have questions, we invite you to contact us.

Examples of Facts and Reasons for Approving Subdivision Applications

(Note: ID Numbers refer to the case ID numbers within the ALC’s decision making process)

Example 1:

• Fact: Proposal to subdivide into two 0.4ha lots. (ID: 68755)
• Reason: Panel approved based on the preparation that was already done. The applicants had prepared the land for subdivision in good faith, relying on prior advice.

Example 2:

• Fact: Proposal to subdivide into strata lot of 0.17 ha. (ID: 66715)
• Reason: Applicants relied upon the misrepresentation of municipal officials. The panel found the applicants acted in good faith based on incorrect information provided to them.

Example 3:

• Fact: Proposal to subdivide into two strata lots of 0.2ha each. (ID: 67645)
• Reason: Panel approved because the Applicant had already invested significant resources based on prior advice, showing a good faith effort to comply with subdivision rules.

Example 4:

• Fact: Section 21(2) Application for Subdivision: Application to divide a large agricultural lot into smaller parcels. (ID: 66887)
• Reason: The intended owner(s) were the children rather than commercial entities, aligning with family farming principles. The panel approved to support the continuity of family farming.

Example 5:

• Fact: Application to retain gravel previously placed for road improvements on agricultural land. (ID: 68868)
• Reason: It appears that the ALC permitted retaining the gravel because it facilitated better access for farming operations, enhancing the agricultural use of the land.

Examples of Facts and Reasons for Denying Subdivision Applications

Example 1:

• Fact: Section 20.1(2) Residential Use of Agricultural Land. (ID: 66911)
• Reason: Proposed additional residence was focused on a non-agricultural purpose, leading to denial. The panel emphasized maintaining the land for agricultural use only.

Example 2:

• Fact: Section 21(2) Application for Subdivision: Application to subdivide without clear agricultural benefit. (ID: 67000)
• Reason: Panel found the proposal did not support agricultural land integrity and would potentially reduce the agricultural viability of the larger lot.

Example 3:

• Fact: Section 21(2) Application for Subdivision: Proposal to divide into multiple residential lots. (ID: 67123)
• Reason: ALC is not able to make decisions based on non-agricultural considerations. The panel denied the application to prevent the introduction of residential elements that did not support farming activities.

Example 4:

• Fact: Section 21(2) Application for Subdivision: Proposal to create small lots unsuitable for agriculture. (ID: 67245)
• Reason: Panel concerned that the 1.5ha lot is too small to maintain agricultural productivity, which could lead to fragmentation of agricultural land.

Example 5:

• Fact: Application to construct access routes through ALR land. (ID: 67367)
• Reason: Even though an alternative non-ALR access route was available, it was not used, leading to denial. The panel emphasized the importance of minimizing non-agricultural development on ALR land.

Analysis of Consistency in ALC Decisions

Consistency in Approvals:

• Good Faith and Prior Preparation: A significant number of approvals are based on applicants’ good faith actions and substantial prior preparation. For instance, in case ID: 68755, the applicants had prepared the land for subdivision in good faith based on prior advice, leading to approval.
• Family and Agricultural Use: Approvals are often granted when the land is intended for family use, which aligns with preserving agricultural land for generational farming. In case ID: 66887, the panel approved the subdivision to support the continuity of family farming.
• Mitigating Hardship: Approvals reflect consideration of mitigating hardships faced by applicants who have made significant investments based on prior misrepresentations or approvals from municipal authorities. For example, in case ID: 66715, the applicants relied on incorrect information from municipal officials, and the panel approved the subdivision based on their good faith effort.

Consistency in Denials:

• Strict Adherence to ALR Regulations: Denials consistently reflect strict adherence to ALR regulations, particularly when proposals do not enhance or maintain agricultural viability. For instance, in case ID: 67000, the panel denied the application because the proposal did not support the agricultural integrity of the land.
• Non-Agricultural Use: Applications that propose non-agricultural uses or introduce residential elements not related to farming are consistently denied. In case ID: 66911, the proposed additional residence focused on non-agricultural use, leading to denial.
• Insufficient Agricultural Benefit: Proposals that fail to demonstrate clear agricultural benefits or that propose lot sizes unsuitable for farming are consistently denied. In case ID: 67245, the panel denied the application due to concerns about the agricultural productivity of the proposed small lot.

Partial Approvals and Denials:

• Balancing Development and Agriculture: Partial approvals and denials indicate the ALC’s effort to balance development needs with agricultural preservation. For instance, in case ID: 67367, while the panel denied the construction of access routes through ALR land due to available non-ALR routes, it approved parts of the application that supported agricultural improvements.
• Case-by-Case Evaluation: Each application is evaluated on a case-by-case basis, considering specific facts and contexts, which provides a nuanced approach to decision-making. This ensures that each decision aligns with broader policy objectives while addressing individual circumstances.

Conclusion

In conclusion, the ALC plays a crucial role in preserving agricultural land in British Columbia, ensuring that farming remains a sustainable and vital part of the province’s landscape. Accordingly, the subdivision of farmland within the ALR is a carefully regulated process, permitted only under specific conditions that align with the ALC’s objectives.

Landowners may seek to subdivide their property for various reasons, such as family succession planning, financial needs, operational efficiency, or environmental management. The ALC’s decisions on these applications are guided by a commitment to preserving agricultural land and enhancing its use for farming.

However, obtaining ALC approval is just one part of the process. Landowners must also navigate regional and municipal zoning requirements, which can vary significantly depending on the location and specific land use policies. Even after receiving ALC approval, there is often a complex government process to work through, involving additional permits and compliance with local regulations.

That said, the ALC’s decisions on subdivision applications demonstrate a clear and consistent pattern backed by the determined objective of preserving agricultural land integrity. Approvals are granted where good faith efforts, family use, and prior preparations align with agricultural objectives, while denials strictly enforce ALR regulations and reject non-agricultural proposals. This approach reflects a balanced consideration of individual circumstances within the broader mandate of protecting agricultural land for future generations.

By reviewing the ALC’s decisions and understanding the criteria and reasons behind subdivision requests, landowners can better navigate the application process and make informed decisions that support both their interests and the broader goals of agricultural preservation.

This content was prepared by Shane Landreville, TEP and was originally published in Island Farm and Garden, August-Sept 2024. Shane is a lawyer at Ramsay Lampman Rhodes practicing primarily in the area of corporate, tax, and estate law, and is a farmer in the Comox Valley. Shane takes appointments in all offices.  

Additional Resource: https://www.alc.gov.bc.ca/assets/alc/assets/legislation-and-regulation/information-bulletins/ib_09_subdivision_and_plans_that_cause_subdivision.pdf