A Guide to Lot Creation in Prime Agricultural AreasDisclaimer: This document is only a guide. While every effort has been made to make it as accurate as possible, it should not be relied on as a substitute for legal or professional advice. This guide deals in summarized fashion with complex matters and reflects legislation, policies and practices that are subject to change. Users should always refer back to the applicable legislative and policy documents when making decisions related to land use planning matters. Please consult the Planning Act and the Provincial Policy Statement (2005) before making decisions on lot creation applications in prime agricultural areas. If discrepancies arise over this guide, the legislation, regulation and provincial policies prevail, in that order of priority. Table of Contents
IntroductionAgriculture is a key part of Ontario’s economy, environment and heritage. The preservation of prime agricultural areas is an important part of the Government’s commitment to help protect agricultural resources for the long term, and promote agricultural production and economic activity. The restriction and minimization of the type and number of new lots created in prime agricultural areas, is one part of this commitment. Creating lots in prime agricultural areas fragments the agricultural land base. If these new lots are then used for non-farming purposes, it takes away farmland that can’t be replaced. Urban and rural non-farm development also interferes with agricultural production and operations. Between 1990 and 2000 there were over 15,500 new lots created on Ontario’s agricultural lands. Almost 80 per cent of these were created for residential uses, whether farm or non-farm related. Residential severances for both farm-related and non-farm related purposes create the same negative impact on agricultural activities and operations. (Source: Ontario’s Country Side: A Resource to Preserve or an Urban Area in Waiting? A Review of Severance Activity in Ontario’s Agriculture Land During the 1990’s. Dr. Wayne Caldwell and Claire Weir. 2002.) This document helps planning authorities, municipal planners, other municipal staff, and land use planning consultants develop local lot creation policies. It covers:
Note: To keep the wording of this guide as simple as possible, we will use the term “planning authorities” to refer to municipalities, planning boards, government agencies and other planning authorities. What Are Prime Agricultural Areas?Prime agricultural areas are defined in the Provincial Policy Statement (PPS) as areas where prime agricultural lands predominate. This includes: areas of prime agricultural lands and associated Canada Land Inventory Classes 4-7 soils; and, additional areas where there is a local concentration of farms which exhibit characteristics of ongoing agriculture. Prime agricultural land is defined in the PPS as land that includes specialty crop areas and/or Canada Land Inventory (CLI) Classes 1, 2 and 3 soils, in this order of priority for protection. Prime agricultural areas may be identified by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) using evaluation procedures established by the Province as amended from time to time, or may also be identified through an alternative agricultural land evaluation system approved by the Province. Provincial Policy Statement 2005The PPS was issued under the authority of section 3 of the Planning Act. It provides policy direction and guidance on matters related to land use planning that are of provincial interest. It is the basis for the Province’s policy led planning system and supports the provincial goal of strong, liveable and healthy communities, which provide a high quality of life for its citizens, now and in the future. The PPS applies to all applications, matters and proceedings that began on or after March 1, 2005. All decisions affecting planning matters shall be consistent with PPS policies. The PPS sets out provincial land use policies, including policies for protecting prime agricultural areas. These policies may be complemented by other provincial plans or by locally-generated policies regarding matters of municipal interest. As provided for in the PPS, prime agricultural areas shall be protected for long-term use for agriculture. The PPS discourages the creation of lots in these areas. Controlling lot creation in prime agricultural areas:
The PPS, 2005 provides stronger policy direction on lot creation in prime agricultural areas than the PPS, 1996 (as amended in 1997). It no longer allows severances that create new residential lots. This includes farm retirement lots and lots for residential infilling. The one exception is lot creation for a residence surplus to a farming operation as a result of farm consolidation. In these cases, the planning authority must prohibit the creation of a new residence on any vacant remnant parcel of farmland created by the severance. The PPS discourages severances in prime agricultural areas. They may only be permitted if they:
The following PPS policies relate to lot creation in prime agricultural areas:
The PPS sets minimum standards. Planning authorities can create stricter standards unless this would conflict with another PPS policy. Specifically, each planning authority can decide whether to permit all, some or none of the severances that are allowed in prime agricultural areas under policies 2.3.4.1 and 2.3.4.2 of the PPS. Depending on the area and its needs, a planning authority may also put more restrictions on these severances to meet local goals. However, planning authorities should ensure that these prohibitions, restrictions and conditions are consistent with PPS policies. Provincial plans may also give more direction for land use planning in certain parts of Ontario. These plans may contain other agricultural land use policies and other related policy requirements. Some examples include:
Under Planning Act regulations, applicants must give planning authorities certain prescribed information when they apply to create a lot. Through its official plan, a planning authority can require an applicant to supply additional studies or plans to make a decision. Some examples of additional information that could be required by a planning authority in order to consider an application to create a lot include:
Until a planning authority receives all the prescribed information, it can refuse to accept or further consider the application. Note: The PPS directs that municipalities only approve new rural development on private communal or individual on-site sewage services (e.g. septic systems) if capacity exists to treat the septage from that development. Lot Creation for Agricultural Uses1. Policy BasisLots in prime agricultural areas can only be created as set out in the PPS. The PPS allows lot creation in prime agricultural areas for agricultural uses, provided that the lots are of a size appropriate for the type of agricultural use(s) common in the area and are sufficiently large to maintain flexibility for future changes in the type or size of agricultural operations. This type of severance divides an existing farm parcel into two or more new, independent farm parcels (Figure 1). This is commonly called a “farm split.” Figure 1. Farm Splits Example diagram of a farm split The PPS sets out two grounds that must be addressed before a planning authority can grant a severance in this context:
Note: These are the only grounds required by this policy. However, other PPS policies may apply in some cases. You must read the PPS in its entirety and apply all relevant policies to each situation. Ground # 1 – Common Agricultural Use(s) in the Area A newly created lot should be big enough for the types of agricultural use(s) common in the area. Common agricultural uses vary across the province because Ontario has many different landscapes, soils and climates. Statistics on current and historical farm operations can help a planning authority determine the types of agricultural use(s) common in the area. Ground # 2 – Flexibility for Future Operations New farm parcels must be large enough to give farmers flexibility in the future. This requirement makes sure that farmers can expand or change their type of operation as the economy and markets change. The larger the farm parcel, the more flexibility it provides. 2. Discussion – Why Is Farm Parcel Size a Concern?Since 1945, the average farm size in Ontario has been growing. In 1986, it was 78 hectares. By 2006, this had increased by more than 20 per cent to 94 hectares. (Source: Statistics Canada, 2006.) However, there are now fewer individual farms because many farmers have bought or rented additional lands. As the size of farms continues to grow, the need to acquire more farmland also increases. As a result, each operation needs more farm parcels (see Figure 2). Generally, it is more efficient to run a farm on a few larger parcels, rather than many smaller ones. Figure 2. Minimum Farm Parcel Size Example diagram of several farm parcels comprising an agricultural operation Farms come in many types, sizes and intensities. Because of this, they may consist of one or more farm parcels. For example, livestock farmers may need larger areas of land for pasture, crop production and manure management. They may also need larger farm parcel sizes to meet setbacks under the Minimum Distance Separation Formulae for livestock buildings. Farms focussing on row crop production (e.g. corn, wheat, soybeans) also require larger farm parcels. Regardless of the type of operation, larger connected farm parcels have many benefits:
In contrast, tender fruit farms often can be accommodated on smaller farm parcels. Most of these farms are found in only a few parts of the province because they need certain soils and climatic conditions to grow these crops. However, larger parcel sizes still benefit tender fruit operations by reducing costs and allowing producers to use equipment and grow their fruit more efficiently. All types of agricultural operations must be located on farm parcels that are large enough to let them not only operate today, but expand in the future if it is needed. Farms are not static. If markets change, farmers often have to change with them. A commodity that is in demand today may not be in demand tomorrow. Farm parcels that are too small to let farmers change can negatively impact the success of an agricultural operation. The smaller the farm parcel becomes, the fewer options a farmer has to produce a different commodity. For example, consider the Minimum Distance Separation (MDS) Formulae. The aim of MDS is to minimize complaints due to odour and thus reduce potential land use conflicts. The MDS Formulae provide two types of calculations:
The larger the farm parcel, the more likely it is that a livestock facility on that parcel can meet the required MDS II setbacks. Figure 3.1 shows a 20-hectare farm parcel currently used to grow row crops like soybeans and corn. The farmer wants to switch to livestock and build a new livestock facility and manure storage. Unfortunately, there is no site on the 20-hectare parcel for these buildings that meets the MDS II setback requirements. Figure 3.1. Maintaining Flexibility for Future Operations MDS II example showing the lack of flexibility of smaller farm parcels Figure 3.2 shows a 40-hectare farm parcel currently used to grow row crops. In this case, there is enough flexibility to build a new livestock facility and manure storage that meets the MDS II setback requirements. Figure 3.2. Maintaining Flexibility for Future Operations MDS II example showing the flexibility of larger farm parcels In this example, maintaining larger farm parcel sizes give farmers more flexibility to evolve and adapt. For example, a farmer could change from row crops to livestock as markets shift. Planning authorities should keep in mind that flexibility is increasingly important for all types of farming, not just livestock operations; especially as farm operations continue to evolve and change. 3. Tools for Evaluating Farm SplitsLocal Policy Development – Using a Minimum Farm Parcel Size When a planning authority is incorporating the PPS policies into their local planning documents, they can approach “farm split” applications in one of two ways:
It is recommended that planning authorities establish an appropriate minimum farm parcel size within their official plans. Setting an appropriate minimum farm parcel size lets planning authorities evaluate “farm splits” more effectively and consistently. It also ensures that the PPS policies are applied to both the newly created lot and the retained parcel. A minimum farm parcel size policy must be consistent with PPS policies. These require:
For more details, see the policy basis section on page 5. Many existing farm parcels in prime agricultural areas do not meet the minimum farm parcel size set out in the local official plan. These smaller farm parcels should continue to be used for agriculture, since they are an integral part of the agricultural area. If the current owner stops farming, the land can be rented or sold to nearby farmers. This not only maintains the continuity of the area, but also gives neighbouring farms the flexibility to expand over time and adjust to market demands and economic shifts. Severance applications in prime agricultural areas, made on the basis that the existing farm parcel is not large enough to solely support an individual agricultural operation, are not considered consistent with the policies of the PPS. Recommended Minimum Farm Parcel Sizes Creating farm parcels that are too small limits future agricultural opportunities and can discourage ongoing farming. For most of Ontario, 40 hectares is the recommended minimum parcel size. Generally speaking, this is the most appropriate minimum size for row crop and livestock operations. It also gives farmers the flexibility to adapt, expand and change their operations as markets and technology change. In parts of Ontario where traditional row crop and livestock operations are common, many planning authorities have made 100 acres (or roughly 40 hectares) the minimum farm parcel size. The Greenbelt Plan (2005) also makes 100 acres (or roughly 40 hectares) the minimum farm parcel size for ‘farm splits’ in prime agricultural areas in the Greenbelt. A smaller minimum lot size may be more appropriate in areas where tender fruits and/or similar specialty crops are grown, and are the common agricultural use in the area. For example, a 40-acre (or roughly 16-hectare) minimum farm parcel size is used for specialty crop areas in the Greenbelt. Planning authorities should only consider smaller minimum farm parcel sizes in areas designated as specialty crop areas in local planning documents. The minimum size should also reflect the types of farms and crops grown in that specialty crop area. For some specialty crops, a minimum size of more than 16 hectares is appropriate. Tools for Determining an Appropriate Minimum Farm Parcel Size There are several tools to help planning authorities determine an appropriate minimum farm parcel size consistent with the PPS tests for “farm splits.” Planning authorities can use these tools to help evaluate “farm splits” case by case, as well as use these tools to determine an appropriate minimum farm parcel size for an official plan. They include:
Information Resources for Determining an Appropriate Farm Parcel Size The following resources on the agricultural industry, discussed above, provide data on farm operation sizes, types of farms, farm parcel sizes and other related information on the agricultural industry. They are useful in determining common types of agricultural uses and appropriate minimum farm parcel sizes.
Lot Creation for Agriculture-Related Uses1. Policy BasisAs provided for in the PPS, planning authorities may create new lots for agriculture-related uses provided that any new lot will be limited to a minimum size needed to accommodate the use and appropriate sewage and water services. They must also “be compatible with, and shall not hinder, surrounding agricultural operations.” The PPS defines agriculture-related uses as farm-related commercial and farm-related industrial uses that are small scale and directly related to the farm operation and are required in close proximity to the farm operation. The PPS sets out six grounds that must be addressed before a planning authority can grant a severance in this context. Agriculture-related uses must:
Lots for agriculture-related uses must also:
Finally, if full municipal services are not provided, the municipality must:
Note: These are the only grounds required by this policy. However, other PPS policies may apply in some cases. You must read the PPS in its entirety and apply all relevant policies to each situation. Ground # 1 — Small in Scale Three factors influence scale:
Planning authorities should keep in mind that scale is relative. For example, what may be considered limited for a grain drying facility, would differ from that of a winery, as these two uses are related to two different types of agricultural operations. Ground # 2 — Directly Related to the Farm Operation A use is directly related to the farming operation if it is essential to the operation and its ability to function. Uses must be associated with the type of operation the farmer runs (livestock, row crops, etc.). For example, a winery is not related to a dairy farm. Furthermore, uses must be related to a single agricultural operation, rather than serve the general farming community. This may limit the opportunities for these types of uses and severances. Ground # 3 — Required In Close Proximity Agriculture-related uses must also be required within close proximity to the farm operation. An agriculture-related use could be considered to be required within close proximity, if moving the use to a location further away from the farm operation, would significantly impair the efficiency or overall productivity of the farm operation. Ground # 4 — Compatible with Surrounding Agricultural Operations Agriculture-related uses “must be compatible with, and shall not hinder, surrounding agricultural operations.” For example, a new lot created for an agriculture-related use must meet the required MDS I setback from any neighbouring livestock facility. A new lot and its agriculture-related use must also not restrict or impair normal farm practices for surrounding farms. Ground # 5 — Limited to a Minimum Size New lots for agriculture-related uses must be limited to a minimum size needed to accommodate the use and appropriate sewage and water services. Planning authorities should set these minimums in local planning documents. Ground # 6 — Availability of Septage Treatment Capacity Planning authorities must be able to treat sewage or septage from any newly created lot, preferably by providing full municipal sewage services. However, if municipal services are not provided, planning authorities may set policies for servicing new developments with private communal or individual on-site sewage services (such as septic systems) may be set. These policies must be consistent with the PPS. The PPS directs that a new lot can be created only if there is confirmation of sufficient reserve sewage system capacity to treat septage, regardless of whether the lot is created by a plan of subdivision or a consent. The PPS defines reserve sewage system capacity as design or planned capacity in a centralized waste water treatment facility which is not yet committed to existing or approved development. The PPS considers the capacity sufficient if the hauled sewage from the development can be treated or disposed at sites approved under the Environmental Protection Act or the Ontario Water Resources Act, but not by land-applying untreated, hauled sewage. 2. Discussion — Understanding Agriculture-Related UsesTo make decisions on lot creation applications, planning authorities must clearly understand what agriculture-related uses are. One key point is that these uses must be intended to serve a single agricultural operation, not the broader farming community. Planning authorities can still permit uses meant to serve the broader farming community as secondary uses on a farm if they are:
Secondary uses cannot be severed from the farm operation. For example, a small winery that processes only grapes grown on site is considered an agriculture-related use. However, a small winery that processes grapes from several growers is considered a secondary use. Other examples of uses that could be agriculture-related, as long as they are consistent with PPS policies, include:
3. Tools for Evaluating Agriculture-Related Use SeverancesLocal Policy Development When planning authorities develop policies for agriculture-related use severances, they should consider:
Planning authorities may prohibit severances for agricultural-related uses, or they can create additional requirements for evaluating the proposed lot. For example, some planning authorities will only consider allowing a severance if the agriculture-related use is already in existence. It is helpful to clarify what types of uses are considered agriculture-related uses in local planning documents. Planning authorities must also include policies for applying MDS to proposed lots for agriculture-related uses. If a proposed use does not meet the definition of an agriculture-related use in the PPS or other relevant policies, a planning authority could consider other options. If it is appropriate, the proposed use could be sited as a secondary use on a farm. If not, the planning authority should direct these uses to rural areas, designated commercial/industrial areas, or designated settlement areas, where appropriate. Lot Creation for a Residence Surplus to a Farming Operation1. Policy BasisThe PPS permits lot creation for a residence surplus to a farming operation as a result of a farm consolidation, provided that the planning authority ensures that new residential dwellings are prohibited on any vacant remnant parcel of farmland created by the severance. As identified in the PPS definition of residence surplus to a farm operation, a farm consolidation means the acquisition of additional farm parcels to be operated as one farm operation. Typically, this type of severance application takes two lots:
and, creates three new lots:
Building a new dwelling on this lot is not allowed (see Figure 6). Figure 6. Surplus Residence A diagram outlining the steps of a surplus dwelling severance after a farm consolidation The PPS sets out four grounds that must be addressed before a planning authority can grant a severance in this context:
Note: These are the only grounds required by this policy. However, other PPS policies may apply in some cases. You must read the PPS in its entirety and apply all relevant policies to each situation. Ground # 1 — Is an Agricultural Operation Present? To be consistent with the PPS definition of a residence surplus to a farming operation:
Ground # 2 — Has a Farm Consolidation Occurred? As identified in the PPS definition of a residence surplus to a farming operation, a farm consolidation means the acquisition of additional farm parcels to be operated as one farm operation. Planning authorities are encouraged to develop more detailed provisions in their land use planning documents to clarify and determine when a farm consolidation has occurred. For example:
Ground # 3 — Is the Residence Surplus to the Farm Operation? Before severing off a surplus farm dwelling, a planning authority should be sure that the farmer doesn’t need it. Consider these questions:
Ground # 4 — How Will the Planning Authority Prohibit the Construction of a Dwelling on the Remnant Parcel? The local planning authority must ensure that no new residential dwellings are permitted on the remnant parcel. The PPS permits approaches as recommended by the Province, or municipal approaches which achieve the same objective. The Province recommends rezoning the remnant lot for “agricultural purposes only” as a condition of approval. Planning authorities could do this by requiring a site-specific rezoning application as a condition of approving the severance. A planning authority may:
As an alternative, if the parcels are abutting, they could be merged into one parcel, as long as the zoning of the new parcel clearly prohibits a second residence. 2. Tools for Surplus Dwelling SeverancesDeveloping Local Policy A new lot for a surplus farm residence should only be large enough to accommodate the residence and an appropriate sewage and water system. Two factors will affect its size:
Planning authorities may want to set specific minimums or standards to address the size of the proposed lot. Planning authorities may create more restrictive requirements for surplus farm dwelling severances. For example, a planning authority could require that:
Planning authorities could also use further additional requirements to address other issues raised in policy 2.3.4.1.(c) discussed above, or to address other policies in the PPS. Alternatively, planning authorities could:
Applying MDS to Surplus Dwelling Severances According to the PPS and the MDS Formulae Implementation Guidelines, planning authorities must apply MDS to proposed new lots. The MDS Formulae Implementation Guidelines give specific direction on applying MDS to surplus farm dwelling severances. For more details, check the MDS Formulae Implementation Guidelines Publication 707. Lot Creation for Infrastructure1. Policy BasisPlanning authorities can create lots to accommodate infrastructure if the facility or corridor cannot be accommodated through the use of easements or rights of way. Severances for infrastructure, such as, hydro corridors, pipelines, etc. are generally discouraged. Planning authorities should encourage the use of tools such as easements and rights-of-way to secure the land based needed for infrastructure. These tools are the preferred approach and leave the ownership of the land with the farm operator. Where use of these tools is not possible, the planning authority can consider applications to create a lot for the infrastructure. Note: This is the only ground required by this policy. However, other PPS policies may apply in some cases. You must read the PPS in its entirety and apply all relevant policies to each situation. 2. Discussion — Defining InfrastructureThe PPS defines infrastructure as the physical structures (facilities and corridors) that form the foundation for development. Infrastructure includes:
Lot Creation for Lot Adjustments1. Policy BasisLot adjustment in prime agricultural areas may be permitted for legal or technical reasons. The PPS sets out one ground that must be addressed before a planning authority can grant a severance in this context:
Note: This is the only ground required by this policy. However, other PPS policies may apply in some cases. You must read the PPS in its entirety and apply all relevant policies to each situation. Ground # 1 — Does the Lot Adjustment Create a New Lot? The PPS defines the legal or technical reasons for these severances as purposes such as easements, corrections of deeds, quit claims and minor boundary adjustments; which do not result in the creation of a new lot (see Figure 7). Applications to split properties that have previously merged on title do not fall within the PPS definition of “legal or technical reasons”. Figure 7. Lot Adjustment Example A diagram showing a minor lot adjustment for legal or technical reasons that does not create a new lot 2. Discussion — Minor Boundary Adjustments“Minor” means something relatively small in quantity, size or degree or something relatively low in rank or significance. However, what is considered a “minor” boundary adjustment will vary. The factors may include:
Planning authorities should consider more than just the numbers. Just because the number is small, does not mean the change is minor. Moving a boundary even a few metres can have a big local impact. A boundary adjustment that moves lot lines from one end of a property to another is not generally considered minor. For example, the OMB heard an appeal for a proposal to adjust a lot line from the northern limit of a 51.6-hectare parcel to its southern limit. This proposal would have created a rural residential lot in the south and merged the northern part of the property with a neighbouring 5.7-hectare parcel. The OMB found that this proposal was not consistent with the PPS because the boundary adjustment:
Source: Ontario Municipal Board. April 6, 2006. Case No. PL051280.) Prohibition of New Residential Lots in Prime Agricultural Areas1. Policy BasisCreating new residential lots in prime agricultural areas shall not be permitted except in accordance with policy 2.3.4.1(c). The PPS now explicitly prohibits creating new residential lots in prime agricultural areas. The only exception is a provision that permits the creation of a lot for a residence surplus to a farming operation as a result of a farm consolidation. Earlier versions of provincial land use policies allowed the creation of other forms of residential lots in prime agricultural areas. These included:
The PPS no longer permits these severances or any other forms of residential lot creation in prime agricultural areas, except for the creation of a lot for a residence surplus to a farming operation as a result of farm consolidation. 2. Tools for Prohibiting New Residential Lots in Prime Agricultural AreasMunicipalities must update their
More InformationThe following resources on lot creation and agricultural land use planning may be helpful. Provincial Policy Statement 2005 Ontario Acts and Regulations
You can reach the Agricultural Information Contact Centre at 1-887-424-1300 or at ag.info.omafra@ontario.ca. For more information or to obtain copies of this or any other ministry publication, please call 1-888-466-2372 from within Ontario. If you are hearing impaired, call OMAFRA’s TTY line at (519) 826-7402. E-mail your requests to products.omafra@ontario.ca, or visit OMAFRA’s website at www.omafra.gov.on.ca A complete listing of all OMAFRA products and services are available on the website. Orders can be faxed to (519) 826-3633 or mailed to Government Information Centre, 1 Stone Road West, Guelph, ON N1G 4Y2.
For more information: Toll Free: 1-877-424-1300 Local: (519) 826-4047 E-mail: ag.info.omafra@ontario.ca
|
|||||||
