DECREASING USE OF FARMLAND FOR FARMING

Reports from Metro Vancouver regional government show the use of farmland for its intended purpose is rapidly dropping. A 2013 report found that 28 per cent of farmland in Richmond, Delta, Langley and Surrey was not used for farming, and that “significant intervention” was needed.

A September 2016 report, based on an earlier farm tax investigation, found that only 50 per cent of Metro Vancouver farmland is used for agriculture, and this is threatening food security in B.C.

Metro Vancouver has asked the provincial government to eliminate tax breaks that are believed to encourage non-farm uses, but the regional government has not received a response because of the recent election, spokeswoman Sarah Lusk said.

“There are an increasing number of property owners in the ALR who are using it for other purposes than farming,” the 2016 report says. “Property owners that do not farm themselves, but rather lease their land to a farmer, receive benefits intended for farmers, including significantly lower taxes.”

The report compares tax and different methods of assessing values on two similar houses, one on ALR land, and one on urban residential zoned land. The home on ALR land is assessed at $750,000, and property tax is $3,800. The home outside the ALR is valued at $4.2 million, with property tax of $13,600.

The report says the provincial government should raise the farm revenue threshold that property owners must claim to obtain major tax breaks on small farms, from $2,500 to at least $3,700. Also, Metro Vancouver wants elimination of a 50 per cent tax exemption in school, transportation, and other taxes that people who build homes on ALR land can receive. In 2015, school exemption taxes reduced ALR property taxes in Metro Vancouver by $4 million.