NIAGARA REGION. REVIEW OF LAND USE POLICY and RELATED IMPLEMENTATION MEASURES REGARDING AGRICULTURAL VALUE ADDED ACTIVITIES. September 10, 2009

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1 NIAGARA REGION REVIEW OF LAND USE POLICY and RELATED IMPLEMENTATION MEASURES REGARDING AGRICULTURAL VALUE ADDED ACTIVITIES SUMMARY REPORT and RECOMMENDATIONS ta tic.fli flic c /31 3 / _ ef62 3 b.jp ller / y/niagar a?page=1 September 10, PLANSCAPE Building Community Through Planning

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3 Niagara Region Review of Land Use Policy and Related Implementation Measures Regarding Agricultural Value Added Activities TABLE OF CONTENTS 1.1 Context Agricultural Strategy Guiding Principles and Agricultural Action Plan What is Value Added agricultural activity? Existing Niagara Policies Overview of existing types of value added activities in the Region External Influences on Value Added activities in Niagara regulatory framework Other Jurisdictions Summarizing the issues Working Group Consultation Farm Diversification Workshop General Fundamental Principles Recommendations respecting Region of Niagara Official Plan Policies Recommendations respecting Local Official Plan Policies and Implementation Measures Related and Complementary Implementation Measures APPENDICES Appendix 1 Methodology Assessment Data & Mapping Appendix 2 Review of Provincial Policy Statement (2005) Appendix 3 Review of Niagara Escarpment Plan Appendix 4 Review of Greenbelt Plan (2005) Appendix 5 Review of Government of the United Kingdom Planning Policy Statement 7 (2004) Appendix 6 Farm Diversification Workshop April 27, 2009 Appendix 7 Region of Niagara Local Official Plan Policy Suggestions FINAL September 10, 2009

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5 Niagara Region Review of Land Use Policy and Related Implementation Measures Regarding Agricultural Value Added Activities September 10, 2009 Summary Report and Recommendations INTRODUCTION The purpose of this study is to support the establishment of agricultural value added 1 activities in Niagara, by considering how the land use planning process in Niagara can identify and encourage such value added activities. The study has been conducted in partial fulfillment of the Regional agricultural support strategy developed by the Region of Niagara Agricultural Task Force and endorsed by Regional Council. The report is presented in three sections. 1. Section 1 documents the background research undertaken as part of the study. 2. Section 2 outlines the process that was followed and summarizes the findings. 3. Section 3 summarizes the fundamental principles and recommended courses of action. SECTION Context Niagara is a leader in promoting sustainable agriculture and farm viability. The agricultural sector contributes significantly to both the economy and the quality of life in the Region. In recognition of the importance of the sector, the Region has endorsed a number of initiatives from the Region of Niagara Agricultural Task Force including development of a comprehensive strategy to support agriculture. 2 Subsequent to the endorsement of the strategy, the Region undertook the preparation of the Agricultural Action Plan Growing 1 Value added uses include agriculturally related uses and secondary uses that are compatible with surrounding agricultural operations. Value retention uses required to prepare a crop for market are included as part of value added uses. 2, Securing A Legacy for Niagara s Agricultural Land: A Vision from One Voice, Agricultural Task Force, Discussion Paper, May 2004, PLANSCAPE (endorsed by Council May 10, 2004) FINAL September 10, 2009

6 Review of Land Use Policy and Related Implementation Measures Page 2 Regarding Agricultural Value Added Activities Summary Report and Recommendations the Industry: Farm Economic Viability for the Long Term 3. The action plan identifies steps that can be taken to ensure that agriculture in the Region will thrive into the 21 st century. A number of the steps recommended in the Action Plan are potentially impacted by the land use policy framework in effect throughout the Region. In order for agriculture to thrive, there is a need to go beyond just protecting the land base. Farms must be profitable in order for the agricultural industry to be sustainable. There needs to be a comprehensive package of activities that support agriculture and encourage its long term viability. The Agricultural Task Force s recommendations respond to these needs. This present study explores land use policies that may be appropriate to provide a more flexible approach to what is an appropriate agricultural or agriculturally related activity. The purpose of the study is to consider opportunities for the establishment of agricultural value added activities in Niagara, and consider how the land use planning process in Niagara can identify and encourage such activities. There is a perceived need to develop a broader definition of agriculture and agricultural activities, that goes beyond the traditional restrictions to recognize innovative means of improving farm viability, while at the same time making sure that the system is not being opened up to abuse. In general terms, Agricultural value added activities are considered to be agriculturally related or secondary uses which are complementary and supportive of all of the various sectors of the agricultural economy. Such activities may be "on farm endeavours undertaken by the owners and operators of a farm or agricultural operation. Such activities may also include off farm activities, directly complementary to and supportive of the agricultural economy, but located on a separate site, and not necessarily operated by farmers. The critical element in the consideration of off farm agricultural value added activities is that they be land uses which service the agricultural economy only and which are not more appropriately directed to settlement areas. In addressing off farm uses, policies must be consistent with the Provincial Policy Statement. The Provincial Policy Statement (PPS) is the fundamental framework within which value added policies must be developed. Regional and local policies are required to be consistent with the Provincial Policy Statement (2005) (PPS) and comply with other Provincial planning initiatives (Niagara Escarpment Plan, Greenbelt Plan, Growth Plan for the Greater Golden Horseshoe). 3 Niagara Agricultural Action Plan, GROWING THE INDUSTRY: Farm Economic Viability for the Long Term, PLANSCAPE, July FINAL September 10, 2009

7 Review of Land Use Policy and Related Implementation Measures Page 3 Regarding Agricultural Value Added Activities Summary Report and Recommendations Section of the PPS regulates uses permitted in Prime Agricultural Areas and restricts them to agricultural uses, secondary uses and agriculture related uses. The nature of each of these uses is specifically defined in the PPS which sets the boundaries for permissions. The Province established these policies to provide flexibility for farmers while protecting the integrity of agricultural areas for production. Any recommendations for policy must be consistent with the PPS which will be in effect until and unless it is reviewed and changed. The PPS is scheduled to be reviewed in 2010, at which time if there are changes which the province agrees are warranted to support the goal of ongoing agricultural sustainability, provisions regarding value added uses could be amended. At the present time, other than in the PPS, there is little policy guidance for considering the range of value added activities that may be appropriate for agricultural properties or areas. Most of the planning framework throughout Niagara reflects a traditional approach to agricultural land use, and predates evolving demands to allow value added activities as integral components that will assist in improving the viability of farms and farmers. This review has been undertaken for the Region of Niagara and the Area Municipalities within a context that recognizes the changing planning landscape. This landscape includes provincial interests identified through the Greenbelt, Provincial Policy Statement (PPS), Niagara Escarpment Plan and Places to Grow legislation, the need to raise awareness of the agricultural sector as good environmental and public health stewards, the desire that the rural community itself lead the vision for agriculture, and the need to focus attention on a sustainable, viable agricultural sector in Niagara. The Regional Strategy Vision for One Voice (2004) and the Agricultural Action Plan (2006) provide the foundation for this study. Niagara recognizes that it is appropriate to create a policy approach that applies across the Region, that is flexible and that allows variations for the individual municipalities. There is also a need to recognize specific policy issues that may arise from particular characteristics of individual sectors within the agricultural economy. The strategy will need to reflect the different characteristics of the tender fruit industry in the north of the Region versus the traditional cash crop activities in the south of the Region. Niagara is somewhat unique in that it contains the largest specialty crop area in the Province, one of only two areas that have been given this special designation. It also contains prime agricultural areas, rural areas and rural settlements. This hierarchy of land designations, as shown on Figure 1, must be factored into the revised policies. The overall objective of this project is to present a set of recommended policies and implementation measures to permit the establishment of value added activities on farms and potentially off farm, which will make a contribution toward the long term FINAL September 10, 2009

8 Figure 1 - Niagara Agricultural Land Base Map µ July 15, 2009 Source: Niagara Region Policy Plan, Office Consolidation, July, 2007, Volume I - Policies

9 Review of Land Use Policy and Related Implementation Measures Page 4 Regarding Agricultural Value Added Activities Summary Report and Recommendations sustainability of agriculture in Niagara. The intention is to develop flexible policies and regulatory tools that will permit value added activities that can be implemented through the use of statutory planning tools and other supportive measures that complement the planning tools. Fundamental to this process is the goal of protecting the agricultural land base and protecting that land base from incompatible or non agricultural land uses. Secondary to this process is consideration of complementary measures that support and enhance sustainability, including taxation tools and staging of activities. However implementation of these measures will require consultation with outside agencies, including MPAC, and use of measures other than planning policies. As part of the study process, research of national and international examples of agricultural value added activities which may be appropriate or relative to Niagara has been undertaken. Niagara has also completed a Local Food Action Plan to support local production. The goals of the local food plan have been considered in developing the value added strategy. 1.2 Agricultural Strategy Guiding Principles and Agricultural Action Plan As the agricultural strategy and the Action Plan established the context for this study, it is appropriate to provide an overview of the principles and actions identified in those activities. The strategy articulates the vision for agriculture in Niagara: Agriculture in Niagara is a diverse, multi faceted industry based on a very special, limited, non renewable resource created by a unique combination of physiography, soil, location and climate. The strength, stability and diversity of the industry is recognized and will be promoted and protected so it can continue to grow and evolve for the benefit of present and future generations. 4 The strategy outlined a series of goals intended to support agriculture, and followed with specific initiatives to be pursued. The Agricultural Action Plan identified tasks and actions needed to support agriculture, and dealt with issues related to economic development, taxation policy, co operation and coordination among agencies, infrastructure, processing and marketing the Niagara brand. 4 Securing A Legacy for Niagara s Agricultural Land: A Vision from One Voice, Agricultural Task Force, Discussion Paper, May 2004, PLANSCAPE, p 2 FINAL September 10, 2009

10 Review of Land Use Policy and Related Implementation Measures Page 5 Regarding Agricultural Value Added Activities Summary Report and Recommendations With respect to the various issues related to value added activities or farm diversification, the Agricultural Action Plan identified a number of actions/tasks. These included: Task 9: Implement development permitting for farm related, value added activities. 5 The Action Plan suggested that the Region assess the feasibility of implementing development permitting to increase flexibility in planning approvals for farm related, value added activities. The approach used by the Niagara Escarpment Commission could be used [as] a base. This has the advantage of using policies that have been tested and can be evaluated for success. 6 Task 10: Evaluate need for independent inspection services. 7 The rationale for this task was to provide inspection services geared to smaller producers, which could encourage the development of smaller scale processing activities. This would include actions such as permitting abattoirs in reasonable proximity to agricultural operations 8 Task 15: Support the implementation of the Culinary Tourism Strategy and Action Plan by participating in the regional committee and promoting coordination with Regional initiatives. 9 The Action Plan noted that an integral part of a culinary strategy would be an inventory, promotion and coordination of local fairs, festivals, farm gate sales operations, farmers markets, field to fork arrangements and pick your own establishments. A culinary trail which encompasses all aspects of food and agricultural products could be established. 10 Task 9 speaks directly to the issue of permitting agriculturally related and secondary uses. Tasks 10 and 15 identify specific types of uses that should be addressed through these policies. 5 Niagara Agricultural Action Plan, GROWING THE INDUSTRY: Farm Economic Viability for the Long Term, PLANSCAPE, July p 27 6 Ibid. p 16 7 Ibid. p 27 8 Ibid. p 16 9 Ibid. p Ibid, p20 FINAL September 10, 2009

11 Review of Land Use Policy and Related Implementation Measures Page 6 Regarding Agricultural Value Added Activities Summary Report and Recommendations 1.3 What is Value Added agricultural activity? Traditionally, agricultural operations have been focused on the production of an agricultural product (growing or raising a particular commodity) 11. Within that context, there has always been a component of value added activity on farms, from simple washing and sorting of product to more intensive processing activities. Land use planning policies and implementation tools have traditionally focused on the production of the product, with less attention on value added. As such, and consistent with Provincial policy, many jurisdictions have developed a regulatory and policy framework that limits value added activity, making it more difficult to expand or consider value added activities on farm properties or in the rural area. Research in other jurisdictions has recognized the need for a broader approach to the identification of appropriate farm and farm related activities. Michigan State University has noted that In a broad sense, value added agriculture is a process of increasing the economic value and consumer appeal of an agricultural commodity. Value added refers to increasing the customer value offered by a product or service. It is a production/marketing strategy driven by customer needs and perceptions. It adds features to a raw agricultural, marine, aqua cultural, or forestry material used to make a product. Examples of value added agriculture is food processing, drying, canning, juicing, handcrafting, unique packaging, labeling and marketing. The farmer is not only involved in production of a raw commodity but also takes part in processing and distribution of the product. 12 It is the vertical integration whereby products from the farm are part of the value added process that defines the uses as agriculturally related. Farm diversification, as referenced in England, goes beyond activities that add value to the agricultural product, to looking at activities that add income to the farm (and the farmer), which may not be directly related to specific farm products. 13 What is significant is that value added in this context would imply income added for the farmer. In Ontario 11 For example, the Provincial Policy Statement (2005) defines agricultural uses to mean the growing of crops, including nursery and horticultural crops; raising of livestock; raising of other animals for food, fur or fibre, including poultry and fish; aquaculture, apiaries; agro forestry; maple syrup production; and associated on farm buildings and structures, including accommodate for full time farm labour when the size and nature of the operation requires additional employment. 12 Michigan State University Extension, Value Added Agricultural Home Page. 13 Government of the United Kingdom, The Implementation of National Planning Policy Guidance (PPG7) in relation to the Diversification of Farm Businesses, October, 2001 FINAL September 10, 2009

12 Review of Land Use Policy and Related Implementation Measures Page 7 Regarding Agricultural Value Added Activities Summary Report and Recommendations these types of uses are referred to as secondary uses. The uses permitted in England may be broader than the traditional range of secondary uses contemplated in Ontario. The Federal Report of the Standing Senate Committee on Agriculture and Forestry (December, 2004) 14 reviewed issues and factors related to value added activities. The Report provides an overview of the activities and scale of value added activities. The Federal Report noted that the term value added can be interpreted in many ways. In agricultural policy, it predominantly describes the steps that alter or add to a product or service. It is an innovation that enhances or improves (in the opinion of the consumer) an existing product, or introduces new products or new product uses. Vertical expansion of a farm operation through direct selling or a move to on farm processing shortens the distance between farmer and consumer, and is often cited as a means to add value to the farm operation. Agricultural value added can also involve new membership and investment in farm cooperatives. In addition, food quality chains can be protected or enhanced, and thus add value through partnerships along the food continuum from the farmer to the processor, distributor and retailer. Adding value does not necessarily involve altering a product; it can be the adoption of new production or handling methods that increase a farmer s capacity and reliability in meeting market demand. Value added can be almost anything that enhances the dimensions of a business. The key is that the value adding activity must increase or stabilize profit margins, and the output must appeal to the consumer. The Federal Report on value added on the farm noted that it tends to be born out of a necessity to adapt to a changing environment. It is market driven and encompasses a vast range of activities designed to increase farm income and profit margins in a highly competitive, risky and segmented market. The notion of adding value on the farm has received considerable attention in recent years because it is seen as a way to rejuvenate the primary agricultural sector and provide a means of responding to the various forces affecting agriculture. Value added agriculture is seen as a way to: increase employment and revitalize rural communities; reduce the economic risk associated with trade activities; 14 Report of the Standing Committee on Agriculture & Forestry, Value Added Agriculture in Canada, December FINAL September 10, 2009

13 Review of Land Use Policy and Related Implementation Measures Page 8 Regarding Agricultural Value Added Activities Summary Report and Recommendations diversify the economic base of rural communities; increase farmers financial stability; provide an opportunity for farmers to sell directly into the retail market; promote a culture of research and innovation; reduce dependency on the world price of commodities; increase opportunities for smaller farms and companies through the development of niche markets; increase quality and brand recognition of regional and Canadian products; promote collective solutions and partnerships along the food value chain; help retain young farmers; educate the non farm population about farming. The Federal Report made specific reference to farmer owned, food processing operations and Cooperatives. On farm food processing is a vertical expansion of farm activities that serves to transform and enhance the appeal of the farmed commodity. Food processing can be as simple as washing vegetables or as complicated as processing ethanol. In any case, the move to food processing requires a shift in marketing practices. The benefit is that the farmer turned processor realizes additional value from being the supplier of his or her processing enterprise. On farm processing also serves to diversify farm income and spread business risk. Co operatives allow for centralized, shared facilities and shared risk, and may also occur off farm. They could represent small to medium sized processing operations. The infrastructure needed to provide processing capabilities requires financing that may need to be shared among a number of owners. However, the scale of these facilities, or their use by multiple farmers, may go beyond the traditional considerations for the processing of on farm products. Financing requirements may also make such activities impractical on individual farms, and may result in the need for such activities to be off farm, but reasonably accessible to the various farming operations utilizing the service. As defined in other jurisdictions, value added activities may occur both on farm and off farm. In the case of processing facilities or cooperatives, while some activity may be located on a specific farm, the success of the facility often will depend on the ability to obtain product from a variety of producers, making it a non farm activity. FINAL September 10, 2009

14 Review of Land Use Policy and Related Implementation Measures Page 9 Regarding Agricultural Value Added Activities Summary Report and Recommendations Value added activities can focus on production activities that improve the value of the product before it is shipped from the farm (or from a group of farms). They can also be marketing activities that bring the consumer directly to the farm or to the farm products. Both components can occur on farm or off farm. Farmers have pointed out that there is another dimension to the definition of value added uses that is overlooked in current policy. In today s market it is no longer sufficient to simply produce product. The product must also be made market ready in order to be sold. This form of activity is referred to as value retention and is fundamental to the success of certain types of farming. On the production side, value added activities include: Washing, sorting and packaging product; Processing activities (wineries, canning, abattoirs); Distribution activities (storage, warehousing and shipping). On the marketing side, value added activities may include: road side produce stands; pick your own facilities; retail facilities for the sale of products; outlets that feature local products, cafes, tasting facilities; tourist accommodations (bed and breakfasts, inns, spas) that focus on the agricultural and rural experience; Experiential activities, which can include working vacations on farms, cooking schools. Other activities that could be considered within the context of value added include: Fairgrounds/special events facilities/educational facilities; Research facilities; Local Food initiatives. All of these activities can potentially have different impacts, and may require a different regulatory framework or policy criteria. The scale of these activities can also vary considerably, from small scale, one farm activity, to larger scale, shared facilities. Similarly, many of these activities can occur both on and off the farm property, although there FINAL September 10, 2009

15 Review of Land Use Policy and Related Implementation Measures Page 10 Regarding Agricultural Value Added Activities Summary Report and Recommendations are potential issues related to any of these uses being considered free standing in a agricultural area, based on the existing Provincial policy framework. In amending policies to allow these types of activities, the issues of scale and servicing must be considered. If the purpose of the activities is to enhance and support agriculture, then larger scale commercial or industrial uses or uses that generate a demand for additional services would not be appropriate. The underlying agricultural use must remain dominant. In determining whether a use meets the test of value added and should appropriately be permitted in a rural area rather than directed to a settlement, tests of scale, impact and servicing must be applied. Consideration must also be given to whether the proposed use is most appropriately accommodated in settlement areas. Using tests of scale, impact and service demands, the preferred hierarchy of location for agriculturally related uses is in settlements, in the rural area and lastly in the prime agricultural area. Lot creation in the agricultural or rural area to permit these uses would be counter to the policies of preserving the land base. However, where vacant, undersized lots exist, agriculturally related uses may be appropriate under very specific circumstances and controls. In Specialty Crop Areas, there is an expectation that evaluation criteria and the application of the provisions will be more rigorous. In Ontario, the PPS permits both agriculturally related and secondary uses. Controls are implemented through the definition of secondary which establishes that the use must be incidental to the principal use of agriculture. Scale, proximity and relationship to the agricultural operation are the controls on agriculturally related uses. Any revised policies must be consistent with PPS. Finally, it needs to be remembered that the purpose of considering value added activities is to promote and sustain the viability of farm operations, and not replace the farming activity. These activities need to be viewed within the overall context of the protection of the agricultural land base and agricultural industry in the Region. The current regulatory framework, from the Province through to the local municipal level, recognizes the importance of the protection of the land base. The activities will continue to need to be secondary and/or accessory to the principal farming activities. One of the challenges that will need to be articulated in any policy revision is to ensure that while promoting the expansion of value added activities, such activities must not become the primary farm activity. FINAL September 10, 2009

16 Review of Land Use Policy and Related Implementation Measures Page 11 Regarding Agricultural Value Added Activities Summary Report and Recommendations 1.4 Existing Niagara Policies Recognizing the importance of agricultural activities has been an important part of the land use planning process in Niagara. Most of the Official Plans however, provide limited policy guideline for value added activities, and reflect some of the traditional approaches to value added activity. a. Regional Niagara Official Plan The Regional Official Plan has a general objective of preserving the agricultural land base and provides policies for activities within the agricultural designations. These policies are the result of many years of working to balance the needs of farmers, control pressure on the land base and support the agricultural sector. They provide a good base to build on. The Niagara Official Plan currently permits small scale agriculturally related uses directly related to, serving, and requiring close proximity to the surrounding agricultural areas. Farm markets in the agricultural areas should be seasonal in nature with the majority of retail floor space devoted to the sale of domestic produce. Secondary uses to the principal farm related uses can include a variety of activities, including bed and breakfast facilities, and uses that produce and market value added agricultural products, provided that: The use is small in scale and remains ancillary to the principal use; Any value added agricultural products are from the farm operation on the property; All of the property remains designated and zoned agricultural; Uses are compatible with and do not hinder surrounding agricultural uses. The provisions in the Regional Plan are consistent with the requirements of the PPS and the Greenbelt Plan. b. Local Municipal Official Plans Value added agricultural activities are often limited to activities that utilize products grown or produced on the farm, as secondary uses. Other farm related commercial and industrial uses may be considered (often by separate zoning amendment) provided they are small scale, directly related to the farm operation and are required in close proximity to farm operations. This is the general approach in West Lincoln, Wainfleet, Fort Erie, Grimsby, Niagara Falls, Pelham and Thorold. FINAL September 10, 2009

17 Review of Land Use Policy and Related Implementation Measures Page 12 Regarding Agricultural Value Added Activities Summary Report and Recommendations The Town of Lincoln Official Plan recognizes agri tourism activities, while limiting them to being small scale and directly related to the farm operation. Lincoln has a specific objective to encourage the further growth of the agri business and agri tourism uses in appropriate locations, at an appropriate scale relative to surrounding land uses and in a manner that does not increase the demand for municipal services. There are specific regulations and size restrictions to such uses as farm markets or fruit stands (including issues such as seasonality of use, limits to the floor area devoted to such uses, and restrictions on the type of product sold. The Town of Niagara on the Lake (NOTL) Official Plan has the most extensive policies. These policies recognize secondary uses which support and are related to the main agricultural use: roadside produce outlets, farm wineries, home industries and occupations including bed & breakfasts, group homes, accessory buildings and structures, and farm help houses and additional farm dwellings for seasonal or full time farm help. The NOTL Plan contemplates some uses in the agricultural area that are independent of a main use which include agricultural markets, estate wineries and small scale industrial and commercial activities directly related to and serving agriculture, and retirement lots. The Secondary Use Policies provide specific requirements for estate and farm wineries, with some flexibility with respect to the size of the facilities and the range of ancillary permitted uses. For example, Estate Wineries provide the following requirements: All wines produced shall be made from predominantly locally grown fruit (crushed and fermented on site); Have the capability to bottle all wine produced on site; Retail sales of wine permitted with limits on the amount of floor space; Hospitality room where food and wine is prepared and served, the sale of products and overnight accommodation may be permitted (by site specific zoning amendment) provided it is clearly demonstrated that such uses are only accessory and complement the estate winery; Located with direct or convenient access to an improved roadway. The policies in Niagara on the Lake Official Plan provide more latitude for considering value added activities than a number of the other official plans. FINAL September 10, 2009

18 Review of Land Use Policy and Related Implementation Measures Page 13 Regarding Agricultural Value Added Activities Summary Report and Recommendations 1.5 Overview of existing types of value added activities in the Region To provide input for this study, the Region of Niagara Planning Department inventoried available information on farm properties with value added activities, using MPAC information. This information was verified to the extent possible through other survey and inspection methods. It is estimated that the data under represents the extent of valued added activities on farms in Niagara, but it does provide an initial indication of the extent and distribution of such activities throughout the Region. The Region has noted the limitations of assessment data for this type of exercise and cautions that because of their limitations the results should be used as guidelines only. A summary of the methodology used by the Region and the findings are attached in Appendix External Influences on Value Added activities in Niagara regulatory framework To consider any changes or expansions to value added activities in the Region, it is necessary to understand the context established by other planning documents. The Province has, over the years, established a number of regulatory provisions that impact local planning activities, some of which may directly influence the ability to expand on value added agricultural activities. The hierarchy of planning controls starts with the provincial policies which include: The Planning Act; The Provincial Policy Statement The Niagara Escarpment Plan Greenbelt Plan Growth Plan for the Greater Golden Horseshoe The provincial policies set out the framework within which the Regional policies must be developed. Local policies are the final stage of the process and must conform to the Regional policies and be consistent with the Provincial policies. a. The Planning Act The Planning Act provides authority for a number of implementation tools that could be used to deal with value added activities. Official Plan and zoning amendments can be FINAL September 10, 2009

19 Review of Land Use Policy and Related Implementation Measures Page 14 Regarding Agricultural Value Added Activities Summary Report and Recommendations used to manage land uses that may entail more or less significant deviations from permitted land uses. Minor variances are a tool that could lend itself well to the management of value added uses. Site Plan control is available to regulate the location of buildings and structures and associated facilities, to ensure that the compatibility between the uses and between neighbouring properties is maintained. Use of Site Plan Control related to value added agricultural activities would have to be recognized through official plan policies. Development Permitting has been identified as a potential tool that could be utilized to provide approvals for certain uses under specified circumstances, and could be tailored to farm value added uses. b. Provincial Policy Statement, 2005 Relevant provisions of the 2005 Provincial Policy Statement related to agricultural activities are noted in Appendix 2. The PPS recognizes the value of prime agricultural lands and the need for their protection. Uses within prime agricultural areas include agricultural uses, secondary uses and agriculture related uses. Secondary uses and agriculture related uses are required to be compatible with and not hinder surrounding agricultural operations. These uses are to be limited in scale and criteria for the establishment of these uses shall be included in municipal planning documents, either as recommended by the Province, or based on municipal approaches which achieve the same objective. The PPS also provides for the creation of new lots for agricultural related uses, provided such lot is kept to the minimum size needed to accommodate the use and required infrastructure. Agricultural uses are generally defined as the growing of product or the raising of livestock. Agricultural related uses are defined as those farm related commercial and industrial uses that are small scale and directly related to the farm operation and are required in close proximity to the farm operation. Secondary uses are defined separately from agriculturally related uses, and include uses that produce value added agricultural products from the farm operation on the property. These definitions continue to provide limits on the range of value added activities, their scale, their location, and the source of their products. FINAL September 10, 2009

20 Review of Land Use Policy and Related Implementation Measures Page 15 Regarding Agricultural Value Added Activities Summary Report and Recommendations The PPS does provide flexibility for municipalities to consider the nature, size and extent of secondary uses or agriculturally related uses. c. Niagara Escarpment Plan The Niagara Escarpment Plan recognizes agricultural operations within the Plan area, including specific types of value added uses. The lands affected by the Niagara Escarpment Plan are shown on Figure 2. A table summarizing the range of uses permitted, depending on the specific designation, is attached as Appendix 3. Activities such as small scale commercial uses accessory to agriculture and wineries, farm vacation homes and bed and breakfasts are acknowledged as agriculturally related uses. The Niagara Escarpment Plan provisions recognize different activities depending on where they are located within the Plan area (Escarpment Natural Area, Protection Area or Rural Area). The Plan is also implemented through a development permit approach administered by the Niagara Escarpment Commission. Ontario Regulation 828/90, as amended, provides the overall direction on what uses and activities are permitted without a development permit, and which require permit approval. d. Greenbelt Plan Portions of Niagara fall within the boundaries of the Greenbelt Plan, as shown on Figure 3. Much of the land is identified as being within the Protected Countryside, with specialty crop areas identified. The Greenbelt Plan provides clear support for agricultural activities, including value added uses necessary for sustainable agricultural uses and activities. A summary of relevant policies in the Greenbelt plan is attached in Appendix 4. The Vision statement for the Greenbelt Plan provides for a diverse range of economic and social activities associated with rural communities, agriculture and tourism (among other uses). The goals for agricultural protection are generally supportive of value added activities, and include: Protection of the specialty crop area land base while allowing supportive infrastructure and value added uses necessary for sustainable agricultural uses and activities; FINAL September 10, 2009

21 Figure 2 - Niagara Escarpment Plan Area in Niagara Region Lake Ontario µ Grimsby St. Catharines Niagara-on-the-Lake Lincoln Thorold West Lincoln Niagara Falls Pelham Welland Legend Niagara Escarpment Plan Area Escarpment Natural Area Escarpment Protection Area Escarpment Rural Area Wainfleet Port Colborne Fort Erie Urban Area Mineral Resource Extraction Area Kilometers Source: Niagara Escarpment Commision, Niagara Escarpment Plan Designations; Niagara Region, Agricultural Value-Added Locations based on MPAC data Lake Erie July 15, 2009

22 Figure 3 - Niagara Region Greenbelt Plan Lake Ontario Niagara-on-the-Lake Grimsby St. Catharines Lincoln Thorold West Lincoln Pelham Niagara Falls Welland Legend Greenbelt Designation µ Niagara Escarpment Plan Area Protected Countryside Wainfleet Port Colborne Fort Erie Kilometers Source: Ministry of Municipal Affairs and Housing, Greenbelt Plan, 2005; Niagara Region, Agricultural Value-Added Locations based on MPAC data Lake Erie July 15, 2009

23 Review of Land Use Policy and Related Implementation Measures Page 16 Regarding Agricultural Value Added Activities Summary Report and Recommendations Support for the Niagara Peninsula specialty crop area as a destination and centre of agriculture focused on the agri food sector and agri tourism related to grape and tender fruit production; Provision of the appropriate flexibility to allow for agriculture, agriculture related and secondary uses, normal farm practices and an evolving agricultural/rural economy. There is recognition within the Niagara area that agri tourism development can be accommodated, particularly within the grape and tender fruit production. e. Growth Plan for the Greater Golden Horseshoe The Growth Plan for the Greater Golden Horseshoe establishes the provincial interest in growth management throughout the Golden Horseshoe, including Niagara. The Growth Plan recognizes the value of agriculture within the area, and notes as part of the Vision for the Greater Golden Horseshoe (Section 1.2.): Unique and high quality agricultural lands will be protected for future generations. Farming will be productive, diverse and sustainable. The Plan establishes policies related to Prime Agricultural areas (Section 4.2.2), which are general in nature and provide support for agricultural activities. It includes policies enabling the province in the future to identify prime agricultural areas and implement additional policies for the protection of agriculture. The Plan cross references the Greenbelt Plan and the PPS as it relates to agricultural uses and activities. There is nothing specific in the Growth Plan that would either help or hinder consideration of value added activities per se (depending, of course, on the scale of activities that may be considered). Some industrial and commercial activities that may be considered value added would be directed to appropriate employment lands within settlements, but the Plan does not preclude considering such activities within the farming community. 1.7 Other Jurisdictions a. Ontario In order to understand the approaches that have been taken to value added uses in other regions of the province, a number of official plans were reviewed. Generally, the FINAL September 10, 2009

24 Review of Land Use Policy and Related Implementation Measures Page 17 Regarding Agricultural Value Added Activities Summary Report and Recommendations approaches to managing value added uses in these plans are similar to the existing situations in Niagara. Secondary uses are limited to small scale facilities required to be in close proximity to the farm operations in the area. Accessory uses must be directly related to the farm operation. The similarity in the overall policies from various municipalities reflects the direction provided in the PPS for value added uses. Grey County permits, within their special Agricultural Designation, farming activities, retail sales of farm produce, market gardening, nurseries, and small scale communal or industrial uses directly supportive and related to the agricultural operation. Huron County supports changing farm practices that contribute to agricultural development, including providing flexibility for farmers to pursue alternative forms of agriculture, and allowing on farm business activities that are compatible with neighbouring uses. Halton Region has studied approaches to expand the range of on farm businesses permitted throughout the rural and agricultural areas, and to recognize approaches for diversification of on farm activities. A February 2002 Draft Technical Background Paper 15 reviewed issues related to on farm business policies in Halton Region. Changes were implemented in the Halton Official Plan through Official Plan Amendment No The goal of the Regional Plan, related to the Rural System, is to maintain a permanently secure, economically viable agricultural industry 17 The Plan establishes a number of objectives designed to recognize and preserve agriculture, Halton Region s official plan promotes a diverse, innovative and economically strong agricultural industry through tailoring its products and marketing to meet local and regional needs, and by promoting agriculture related tourism and direct sales of farm produce and accessory products to visitors and local businesses. The Plan also provides detailed policies regarding permitted uses in the agricultural area. This explicitly recognizes some of the value added activities that can be associated with farm operations. The approach recommended in the Technical Background paper also formed the basis for the Town of Halton Hills Official Plan policies, which provide a more extensive checklist of permitted uses and development standards for various business activities in the Agricultural Area. The policies were adopted in 2006, and approved in These 15 Halton Region 2002 Official Plan Review, Draft Technical Background Paper # 5, Extending On Farm Business Policies in Halton Region, VDV Consulting and Mark L. Dorfman, Planner, Inc., February It is understood that the policy framework has been approved, however, specific deferrals are in effect it they relate to specific properties additional confirmation is needed on the status of these policies. 17 Policy 91, Halton Region Official Plan, August 17, 2006 office consolidation FINAL September 10, 2009

25 Review of Land Use Policy and Related Implementation Measures Page 18 Regarding Agricultural Value Added Activities Summary Report and Recommendations policies are consistent with the direction provided in the Provincial Policy Statement (2005). In the recent update to its Official Plan, Oxford County revised its value added policies and in doing so addressed the difficult challenge of allowing agriculturally related uses on separate properties within the agricultural area The approach taken permitted agriculturally related uses on separate properties but only if they complied with a series of tests established by the policies. Given that there are a number of small lots in the agricultural and rural area of Niagara that are too small to farmer, the Oxford approach could be a model for Niagara. Allowing strictly controlled agriculturally related uses on these lots t could reduce pressure to develop them for potentially conflicting uses. In 2006, the Ontario Farm Fresh Marketing Association retained Wayne J. Caldwell to undertake a review of land use planning affecting direct marketing and Agri tourism operations in Ontario 18. The report provides an excellent summary of the state of the art in Ontario, and provides suggestions on official plan policies and zoning regulations that reflect direct marketing and agri tourism. Of interest to this review are the references to process considerations, where three approaches are generally utilized for various types of diversification uses: Allow the use as an acceptable part of the Agricultural designation (as of right and subject to specific performance criteria in the zoning by law); Allow the use only through a zoning amendment (usually a site specific amendment to reflect the specific use this allows a higher level of municipal and public review with respect to the suitability of the proposed use); and Not recognize the use in the official plan hence requiring an official plan amendment for the use. The Caldwell Report referred back to previous work undertaken by Caldwell and Aston in related specifically to the wine industry, where they assessed uses on the basis of their compatibility with surrounding/ neighbouring uses, and related the appropriate process to their degree of compatibility, generally as follows: 18 Wayne J. Caldwell, PhD, RPP, MCIP, Jurisdictional Analysis and Best Practices for Land Use Planning Affecting Direct Marketing and Agri tourism Operations in Ontario, May Caldwell, W. and D. Aston, Planning for the Future Development of Ontario s Wine Industry, University of Guelph. FINAL September 10, 2009

26 Review of Land Use Policy and Related Implementation Measures Page 19 Regarding Agricultural Value Added Activities Summary Report and Recommendations Compatible Permitted as of right Somewhat compatible Zoning Amendment subject to Official Plan policy Least compatible May not be appropriate or permitted The authors produced a table that summarized the types of uses related to their compatibility. The table provides a good overview of the impact of various scaled uses on the agricultural use of the site and the surrounding area. The table is reproduced here. Summary of Compatibility Ratings Winery uses with their Neighbours Compatible Somewhat Compatible Least Compatible Tours and Tastings Bus Tours Sale of Non local products Wine Sales Outdoor Events Helicopter tours Gift Boutique Indoor Events Large Gourmet Sale of Local Small Large Overnight Products Restaurant Outdoor Barbecue Restaurant Bed & Breakfast (max 3 rooms) Fine Dining Weddings and Reception Banquet Facilities Conference Rooms Bed & Breakfast (max 6 rooms) Guest Cottage Inn Source: Caldwell, W. and D. Aston, Planning for the Future Development of Ontario s Wine Industry, University of Guelph. From a municipal planning perspective, compatibility is an umbrella that addresses impacts related to preservation of the agricultural land base, safety, access, signage, etc. While the preceding table provides a good breakdown of wine related tourist activities, the principles associated with scale and compatibility can also be applied to other production and marketing forms of value added activities. FINAL September 10, 2009

27 Review of Land Use Policy and Related Implementation Measures Page 20 Regarding Agricultural Value Added Activities Summary Report and Recommendations b. British Columbia British Columbia maintains an extensive agricultural land reserve where municipal planning policies are required to conform to the Province s Agricultural Land Commission Act and Agricultural Land Reserve Use, Subdivision and Procedure Regulation. The Agricultural Land Reserve Regulation identifies the range of permitted uses that are considered farm use, and which may be regulated but not prohibited by a municipality. The value added types of uses are noted below: Farm retail sales if o all of the farm product offered for sale is produced on the farm on which the retail sales are taking place, or o At least 50% of the retail sales area is limited to the sale of farm products produced on the farm on which the retail sales are taking place and the total area, both indoors and outdoors, used for the retail sales of all products does not exceed 300 m 2. A British Columbia licensed winery or cidery, and an ancillary use, if the wine or cider produced and offered for sale is made from farm product and o at least 50% of that farm product is grown on the farm on which the winery or cidery is located; or o the farm that grows the farm products used to produce wine or cider is more than 2 ha in area, and, unless otherwise authorized by the commission, at least 50% of the total farm product for processing provided under a minimum 3 year contract from a farm in British Columbia. o (ancillary uses related to a winery or cidery include: Processing, storage and retail sales; Tours; A food and beverage service lounge, if the area does not exceed 125 m 2 indoors and 125 m 2 outdoors. ) Storage, packing, product preparation or processing of farm products, if at least 50% of the farm product being stored, packed, prepared or processed is produced on the farm or is feed required for farm production purposes on the farm; Agri tourism activities, other than accommodation, on land that is classified as a farm under the Assessment Act, if the use is temporary and seasonal, and promotes FINAL September 10, 2009

28 Review of Land Use Policy and Related Implementation Measures Page 21 Regarding Agricultural Value Added Activities Summary Report and Recommendations or markets farm products grown, raised or processed on the farm; horse riding, training and boarding, including a facility for horse riding, training and boarding, if: o the stables do not have more than 40 permanent stalls, and o the facility does not include a racetrack licensed by the British Columbia Racing Commission; The Regulation permits the following uses in an agricultural land reserve, unless otherwise prohibited by a municipality: Accommodation for agri tourism on a farm if: o all or part of the parcel on which the accommodation is located is classified as a farm under the Assessment Act; o the accommodation is limited to 10 sleeping units in total of seasonal campsites, seasonal cabins or short term use of bedrooms including bed and breakfast bedrooms ; and o the total developed area for buildings, landscaping and access for the accommodation is less than 5% of the parcel. A home occupation use that is accessory to a dwelling, of not more than 100 m 2, or such other area as specified in a municipal bylaw; Bed and breakfast use of not more than 4 bedrooms for short term tourist accommodation or such other number of bedrooms as specified in a municipal bylaw; Education and research except schools under the School Act as long as the area occupied by any buildings or structures necessary for the education or research does not exceed 100 m 2 for each parcel. The Regulation provides for a specific range of value added types of uses, but restricts the size of such uses to small scale activities that are secondary to the farm operations. Refinements to the Regulation, where permitted, are usually found in the Official Community Plans (OCP) and associated zoning bylaws. c. United States Farm practices vary considerably throughout the US. As noted in the previously mentioned Halton review, In North America governments have tended to expect farmers to supplement agricultural income shortfalls with earnings from off farm work rather than encourage on farm diversification. There is evidence that this may be changing. Community economic development and other provincial/state agencies are FINAL September 10, 2009

29 Review of Land Use Policy and Related Implementation Measures Page 22 Regarding Agricultural Value Added Activities Summary Report and Recommendations now promoting home businesses and industries as significant opportunities for rural residents and local communities. 20 d. England Farm diversification has been recognized in England, and has also been subject to financial assistance through the government. From a review of selected policy documents, the implementation of diversification activities at the local level tends to reflect some of the same issues as are prevalent in Ontario. In the Halton review, it was noted that most European countries have policies recognizing the multifunctional benefits of agriculture and provide monetary incentives that encourage farm diversification. 21 England has established an extensive planning system based on national policies (Planning Policy Statements), which are in turn implemented through Regional Spatial Strategies and Local Development Documents. Planning Policy Statement 7 states: Sustainable Development in Rural Areas (2004) sets out the government s philosophy on development in rural areas (quite similar to the approach in the Ontario Provincial Policy Statement); Appendix 5 summarizes those provisions of the British Planning Policy Statement that are related to farm diversification (or value added activities). The policy statement is relatively recent, and has yet to be implemented in a broad fashion at the regional or local level. The Policy Statement replaces a previous Planning Policy Guidance document that also encouraged farm diversification. Farm Diversification is also viewed within the context of the broader rural economy, sustainability and the direction of the government related to landscape preservation. As such, some of the policy direction allows certain uses that are clearly non farm in nature, but may utilize farm buildings and hence preserve their appearance in the countryside. The policy direction requires that the farm diversification schemes contribute to sustainable development objectives, help sustain the agricultural enterprise, and are consistent in their scale with their rural location. The policies encourage the re use or replacement of existing buildings, and do not support situations that would result in excessive expansion and encroachment of building development into the countryside. 20 Halton Region 2002 Official Plan Review, Draft Technical Background Paper # 5, Extending On Farm Business Policies in Halton Region, VDV Consulting and Mark L. Dorfman, Planner, Inc., February 2002, p 6 21 Ibid. p 6 FINAL September 10, 2009

30 Review of Land Use Policy and Related Implementation Measures Page 23 Regarding Agricultural Value Added Activities Summary Report and Recommendations 1.8 Summarizing the issues Based on the review of existing regulations in Niagara, consideration of the Provincial Policy framework, a review of opportunities and issues related to value added activities elsewhere, and consideration of work of the Task Force, a number of issues are relevant to this study, and should form the basis for land use policies in the Regional Official Plan. a. The range of uses permitted for value added activities and farm diversification in Niagara is currently limited. Potential uses should be clearly identified and the list of permitted uses expanded both on the production and the marketing end, while respecting and maintaining the principal agricultural use of farm properties and areas. The range of uses, the scale at which they would be permitted and various other permissions could vary depending on whether the uses are located in a rural, general or unique agricultural area. b. A distinction should be made between value retention and value added activities. Examples of value retention include activities such as pre cooling, washing and waxing, sorting, packing, drying, slicing, coring and quartering of fruits and vegetables, apple storage, cherry pitting, peach freezing seed production, preparation of juice (concentrate) pickling of vegetables and honey production. c. Compatibility between agricultural uses (both on site and neighbouring uses) and value added uses must be maintained. d. Packing activities need to be permitted as an integral part of agricultural uses, subject to reasonable regulation, and policies should address the seasonal nature of locally grown produce. e. Agri tourism activities should include farm holiday opportunities, various accommodation opportunities, and educational and recreational activities. f. Current approaches to small scale secondary uses are overly restrictive and should be made more flexible, while maintaining primary agricultural uses. In encouraging the reuse of agricultural buildings to preserve rural landscapes, it may be appropriate to consider different limits on scale whether on farm or off farm. Scale could also be adjusted in relation to the size of the farm operation. g. Not all agriculturally related or secondary uses need to be on farm properties; they may occupy separate lots in appropriate circumstances. Lot creation for non FINAL September 10, 2009

31 Review of Land Use Policy and Related Implementation Measures Page 24 Regarding Agricultural Value Added Activities Summary Report and Recommendations agricultural uses should be prohibited but existing lots could be used for processing or marketing uses subject to specific tests. This concept will require careful and further discussion with area municipalities and the Province to ensure that potential adverse impacts on farming activity are properly addressed. h. Infrastructure (public infrastructure including transportation facilities), including on site infrastructure (parking, sanitary facilities) needs to be available to accommodate value added uses. Uses that create a demand for urban services should not be permitted. i. Policies should be flexible, with limited prescriptive standards in the Official Plans detailed standards should be in the zoning by laws, unless required to establish or define an appropriate scale of activity. j. Policies need to recognize opportunities for cooperative ventures Rather than several small processing activities occurring on individual farms, pooling of resources into larger activities needs to be considered potentially on some farms, but also on separate properties (for ownership, financing and mortgage purposes). Scale, servicing and infrastructure requirements and off site impacts should be criteria used to determine when a use would be more appropriately located in a settlement area. The flexibility to address cooperative ventures may not exist under the current PPS. Policies should be carefully crafted to respond to this need and opportunities for amendments to provincial policy pursued. Consistency of policy approach among municipalities is a goal. k. Policies should be developed for establishing value added uses in different areas. These policies could build on the provisions currently in effect for the Niagara Escarpment lands, but would differ for different areas of Niagara and should address issues including scale, number of uses on a property and be drafted to ensure that the agricultural use continues to dominate. l. Locational criteria should be developed for specific types of activities, particularly where they occur off farm. m. Requirements for local products only or on farm produce only related to such items as retail sales and farmer s markets should be relaxed. While it is appropriate to require the majority of product be from the farm, to allow ongoing operation, some off farm product may be required. FINAL September 10, 2009

32 Review of Land Use Policy and Related Implementation Measures Page 25 Regarding Agricultural Value Added Activities Summary Report and Recommendations n. Guidance should be provided in policy for those uses that should be considered as of right accessory or secondary uses in any agricultural zones and those that should be considered by site specific amendment (while having regard for the overall provincial policy context). In establishing the list of permitted uses the requirements of the agricultural sector to operate successfully must be considered. Uses that may be not be permitted in urban areas (i.e. abattoirs, meat inspections agencies), the absence of which adversely impacts the farmers ability to operate, should be accommodated in the rural and agricultural area. o. Educational and research activities, directly related to the agriculture in the area and servicing area growers should be permitted. p. In addition to providing sample local official plan policies, consideration should be given to model zoning standards to establish the specific development criteria. q. While it is acknowledged that taxation is not a land use policy issue and planning controls cannot guarantee financial stability for farmers; ensuring that value added activities are permitted and are fairly and equitably taxed would be helpful. r. Policies and approaches will need to be consistent with Provincial requirements in the Niagara Escarpment, specialty crop areas and the Greenbelt. This may result in different standards and requirements depending where the value added activity is located. Support from affected provincial agencies may be required to implement components of the value added policy framework. s. Policies may provide for consideration of a development permit approach to recognizing value added activities, consistent with the approach currently in effect on the Niagara Escarpment. t. With the enactment of the Green Energy Act and implementation of guidelines for uses such as anaerobic digesters, to the extent it is permitted; policies are needed to address these uses. u. The Region of Niagara has recently adopted a Local Food Action Plan. The value retention / added policies need to support implementation of this Plan. The recommended approach must be consistent with the Provincial Policy Statement. Although over time the PPS has become more flexible in dealing with agriculturally related and secondary uses, there are still areas where adjustments would be helpful. The Region FINAL September 10, 2009

33 Review of Land Use Policy and Related Implementation Measures Page 26 Regarding Agricultural Value Added Activities Summary Report and Recommendations should work with the province as the scheduled review of the PPS proceeds, to identify appropriate changes. Issues such as the reuse of redundant farm buildings, supporting cooperative ventures, managing financing and taxation issues, encouraging parcel consolidation and allowing agriculturally related uses on undersized vacant lots are issues that could be considered as part of the review. SECTION 2 PROCESS 2.1 Working Group The review of the value added policies and implementation measures took place in a number of phases. As noted in Section 1, the process was commenced in response to the recommendations of the Agricultural Action Plan Growing the Industry developed by the Agricultural Task Force and endorsed by Regional Council. To ensure that the process would accurately reflect the thinking of the Task Force, a Working Group was established to provide advice and input. This Working Committee was comprised of: Members of the Task Force including farmers and politicians, Regional planning staff, Local municipal planners, Ministry of Municipal Affairs staff, and Ministry of Agriculture Food and Rural Affairs staff. This group was instrumental in providing the input that led to the preparation of a draft of the first section of this report. Regional staff conducted an inventory of existing rural uses to assist in understanding the types of uses currently operating in the rural area. Workshop sessions were held with the Working Group to discuss the report as it evolved. The final draft of the first report was released on February 27, Consultation Subsequent to the release of the draft report a series of consultations were held. An initial meeting was held with the Working Group on March 12, On March 25 th, 2009, the report was presented to a joint meeting of the Niagara North and Niagara South Federations of Agriculture attended by representatives of each of the active commodity groups in Niagara. This was an excellent opportunity to get a broad range of FINAL September 10, 2009

34 Review of Land Use Policy and Related Implementation Measures Page 27 Regarding Agricultural Value Added Activities Summary Report and Recommendations input from the different commodity groups representing different geographic areas of Niagara. On April 15, 2009, a meeting was held with provincial planners from MMAH and OMAFRA to discuss the draft report, then a subsequent meeting was held with the Working Group to discuss input received to date and to solicit additional comments. On April 16 th, 2009, the draft report was presented to the Agricultural Task Force and then to a meeting of the Area Planners for Niagara. Based on the input received from the consultations, a draft set of policies and series of definitions were released for comments. This material and the draft report were then used as the basis for a workshop to consult with farmers and members of the community. 2.3 Farm Diversification Workshop A Workshop was held at the Herdner s Estate Winery to discuss the work to date and solicit input from different stakeholders. This session was attended by approximately 50 participants. Present at the workshop were farmers, local planers, provincial staff, owners of agriculturally related businesses, representatives of the Greenbelt Foundation and interested participants. Participants were provided with an overview of the process and the policy context within which decisions have to be made. The goals of implementing revised value added policies were summarized as: Increase employment and revitalize rural communities; Reduce the economic risk associated with trade activities; Diversify the economic base of rural communities; Increase farmers financial stability; Promote a culture of research and innovation; Reduce dependency on the world price of commodities; Increase opportunities for smaller farms and companies through the development of niche markets; Increase quality and brand recognition of regional and Canadian products; Promote collective solutions and partnerships along the food value chain; Help retain young farmers; Educate the nonfarm population to what farming is about. The breakdown of value added and value retention uses was presented. FINAL September 10, 2009

35 Review of Land Use Policy and Related Implementation Measures Page 28 Regarding Agricultural Value Added Activities Summary Report and Recommendations Draft September 10, 2009

36 Review of Land Use Policy and Related Implementation Measures Page 29 Regarding Agricultural Value Added Activities Summary Report and Recommendations The tests for evaluating value added activities were identified as: Is the scale suitable to the site and farming operation? Would the use be more appropriate in the urban area or rural settlement? Are there suitable lands for the use in a nearby rural settlement? Does the use support and complement agricultural activity? Is the use compatible in the agricultural area? Low water and effluent producing? Contributes to economic viability of farming operation? Appropriate off site impacts including traffic and infrastructure? Does the use retain integrity and character of agricultural area? Based on this presentation, participants at the workshop were divided into groups and asked to consider the following four questions. Question 1: Question 2: Question 3: Is the range and breakdown of value added / value retention uses proposed appropriate? If not what is missing? Are the limits / tests proposed in the policies reasonable and workable? Should the permissions and limits be different between the specialty crop area and the general agricultural lands? Draft September 10, 2009

37 Review of Land Use Policy and Related Implementation Measures Page 30 Regarding Agricultural Value Added Activities Summary Report and Recommendations Question 4: What additional action could be taken outside of the planning process to support value added uses? The responses to these questions are summarized below. A detailed summary of the activities at the workshop and notes from each group are contained in Appendix 6 to this report. Question 1: Is the range and breakdown of value added / value retention uses proposed appropriate? If not what is missing? Differentiate between large and small producers; Policies should be positive in encouraging activities that support agriculture; Value retention criteria is relationship to production; May be appropriate to treat unproductive lands within productive areas using same approach as the one for small lots in rural area. Question 2: Are the limits / tests proposed in the policies reasonable and workable? For all value added uses including those off farm on rural lots there should be connection to agriculture that is the test; Measure is scale in relation to primary production; Control is through zoning; Scale can also be managed by impact on servicing requirements (sewer & water, parking); Address issue of success pushing activity out of scale; May want to consider an alternative definition of farmer OFA definition of $7000 minimum income problematic; Look at alternatives to deal with servicing issues i.e. only require parking and services for a few weeks a year may be alternative ways to accommodate this without upgrading services (i.e. buses or temporary facilities); Applications should be supported by long term business plan to manage issues if business gets too big; Set up tests which will include MDS, scale, buffers, percentage of farm activity, impacts, need, appropriateness, risk assessment, potential for growth; Streamline approval process; Need flexibility tempered by controls; FINAL September 10, 2009

38 Review of Land Use Policy and Related Implementation Measures Page 31 Regarding Agricultural Value Added Activities Summary Report and Recommendations Signage an issue; Be sensitive to special circumstances (i.e. horse farm students). Question 3: Should the permissions and limits be different between the specialty crop area and the general agricultural lands? Look at Greenbelt policies for Niagara must be consistent and differentiate for area outside of Greenbelt; Should coordinate with NEP; Must be consistent with NEP. Question 4: What additional action could be taken outside of the planning process to support value added uses? Enhance incentives to farm so land does not go out of production strong incentives to rent if owner does not farm; Tax structure is a disincentive acknowledge lack of municipal jurisdiction but need to find creative ways to counter and manage this issue; Adaptive re use should not introduce potentially conflicting use into agricultural area make sure uses are restricted to those that work with agricultural; What are implications of Green Energy initiatives how are they classified? Coordinate with OMAFRA; Create incentives to maintain agricultural infrastructure and to keep land in production; Promote buy local; Provide a handbook on managing business in the rural area. Based on the input received from the Workshop and the input provided on the draft report, recommendations were finalized and are presented in the next section of this report. FINAL September 10, 2009

39 Review of Land Use Policy and Related Implementation Measures Page 32 Regarding Agricultural Value Added Activities Summary Report and Recommendations SECTION 3 FINDINGS AND RECOMMENDATIONS 3.1 General In the terms of reference for this study, the objective was to generate amended official plan policies at the regional and local levels to support more flexible value added policies. However as the process evolved, it became apparent that the confines of existing provincial policies limit the steps that can be taken to broaden support for value added activities. Therefore three sets of recommendations were generated: 1. Regional Official Plan policies 2. Local Official Plan policies and Implementation Measures 3. Related and Complementary Implementation Measures 3.2 Fundamental Principles In developing policies there is a set of principles that govern the management of value added and value retention uses. These principles include: The right to farm is paramount in the agricultural area. Nothing should be permitted that will adversely impact primary production. Protection of the land base for agriculture is fundamental. The purpose of allowing farm diversification and value added uses is to improve financial returns for farmers. The integrity of the agricultural area for farming must be protected. Policies should enhance the ability to farm successfully without conflicts. Value retention is an intrinsic part of production and addresses the requirement for market ready products. Value retention activities are part of the primary agricultural use. Value added activities should add value to a product without detracting from the primary agricultural function. FINAL September 10, 2009

40 Review of Land Use Policy and Related Implementation Measures Page 33 Regarding Agricultural Value Added Activities Summary Report and Recommendations Secondary uses and diversification is desirable to enhance income but must not detract from the primary agricultural function. Creative re use of properties and buildings permits retention of elements of the rural countryside without detracting from production. Lot creation for non agricultural uses must be prohibited but use of existing undersized lots for agriculturally related functions could be considered in controlled and very limited circumstances. Value added uses include accessory, farm related uses and secondary uses. Controls on scale and impact are key to protecting primary production but can vary depending on the nature of the area and the municipality. 3.3 Recommendations respecting Region of Niagara Official Plan Policies The policy framework for the Niagara Official Plan should include specific policy direction related to farm diversification and value added activities. The Plan should identify the Regional interest in supporting value added activities, and establish the broad framework from which the local municipalities can refine their approaches based on their needs. The existing policies in Section 3 (Regional Strategy) and Section 6 (Agriculture and Rural Areas) of the current Regional Official Plan need to be supplemented with more detailed provisions respecting opportunities associated with diversification activities. (a) Section 3.6 Regional Strategy/Strategic Objectives Those portions of Section 3.6 that relate specifically to the agricultural industry currently read: To provide for the conservation and wise use of Niagara s agricultural and other natural resources, through environmentally sound resource use without compromising the needs of future generations. Advocate and support government policies and programs which promote the agricultural industry. Protection of farmers right to farm by minimizing the introduction of incompatible land uses within the agricultural areas. FINAL September 10, 2009

41 Review of Land Use Policy and Related Implementation Measures Page 34 Regarding Agricultural Value Added Activities Summary Report and Recommendations Preserve agricultural lands with highest priority being given to the protection of the unique agricultural lands. These strategic objectives should be supplemented with the addition of the following: Recognize the changing nature of agriculture and support farm diversification activities that contribute to the long term economic sustainability of the agricultural industry. Establish a positive framework for facilitating sustainable development that supports traditional land based activities and supports diverse, profitable and sustainable farming activities. (b) Section 6. Objectives for Agriculture and Rural Area The existing Official Plan contains six objectives that reinforce the importance of the agricultural land base and promote and protect the agricultural industry. Objective 6.1 To preserve Niagara's agricultural lands. The unique agricultural lands suitable for tender fruits and grapes have the highest priority for preservation. Good general agricultural lands have the second highest priority for protection. Objective 6.2 To advocate and support government policies and programs which promote the agricultural industry. Objective 6.3 To conserve and enhance the natural resources of the Agricultural and Rural Areas. Objective 6.4 To provide for a limited amount of non farm development in designated Hamlets, Villages and Rural Areas. Objective 6.5 To provide an efficient and orderly pattern of land uses in the Agricultural and Rural Areas, which lessens land use conflicts, which requires a minimum of municipal services and conserves natural resources. Objective 6.6 To protect farmers' right to farm by minimizing the potential for conflicts between farm and non farm uses. It is recommended that the following additional objectives be added to the existing list: FINAL September 10, 2009

42 Review of Land Use Policy and Related Implementation Measures Page 35 Regarding Agricultural Value Added Activities Summary Report and Recommendations Objective 6.7 To support activities that enable farming and farmers to: Become more competitive, sustainable and environmentally friendly; Adapt to new and changing markets; Diversify into and take advantage of new agricultural opportunities; Improve the understanding of agriculture by the general public; and Broaden operations to diversify economic activities and add value to their primary products. Objective 6.8 To encourage a large range of farm diversification activities in appropriate locations and at a scale suitable to the farm and the rural area where they contribute to economically sustainable agriculture. Objective 6.9 To recognize the role of the Region to establish flexible, performance based criteria for use by the local municipalities, and recognize variations in the range of diversification activities within individual municipalities. Objective 6.10 To recognize the range of impacts that different types of value added activities may have on the farm and on surrounding farms, and provide for different regulatory provisions. Objective 6.11 To support development of fair tax policies that address value added activities and economic diversification on farms. (c) Definitions A new section following the Objectives should be added, to provide definitions that apply to the Agriculture and Rural Areas. The following is proposed: Definitions: The following definitions apply to this section. FINAL September 10, 2009

43 Review of Land Use Policy and Related Implementation Measures Page 36 Regarding Agricultural Value Added Activities Summary Report and Recommendations Agricultural uses: means the growing of crops, including nursery and horticultural crops; raising of livestock; raising of other animals for food, fur or fibre, including poultry and fish; aquaculture; apiaries; agro forestry, maple syrup production; and associated on farm buildings and structures, including accommodation for full time farm labour when the size and nature of the operation requires additional employment. Agricultural uses include value retention uses required to make a commodity salable (i.e. Corn dryer, washing, sorting, packing and packaging. Agriculture related uses: mean those farm related commercial and farmrelated industrial uses that are small scale and directly related to the farm operation and are required in close proximity to the farm operation. (PPS 2005) Prime Agricultural Area: means areas where prime agricultural lands predominate. This includes: areas of prime agricultural lands and associated Canada Land Inventory Class 4 7 soils; and additional areas where there is a local concentration of farms which exhibit characteristics of ongoing agriculture. Prime agricultural areas may be identified by the Ontario Ministry of Agriculture and Food 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. (PPS 2005) Prime agricultural land: means land that includes specialty crop areas and/or Canada Land Inventory Classes 1, 2 and 3 soils, in this order of priority for protection. (PPS 2005) Secondary Uses: means uses secondary to the principal use, including, but not limited to, home occupations, home industries, and uses that produce value added agricultural products from the farm operations. Specialty crop area: means areas designated using evaluation procedures established by the province, as amended from time to time, where specialty crops such as tender fruits (peaches, cherries, plums), grapes, other fruit crops, vegetable crops, greenhouse crops, and crops from agriculturally developed organic soil lands are predominantly grown, usually resulting from: FINAL September 10, 2009

44 Review of Land Use Policy and Related Implementation Measures Page 37 Regarding Agricultural Value Added Activities Summary Report and Recommendations (a) Soils that have suitability to produce specialty crops, or lands that are subject to special climatic conditions, or a combination of both; and/or (b) A combination of farmers skilled in the production of specialty crops, and of capital investment in related facilities and services to produce, store, or process specialty crops. (PPS 2005) In Niagara, lands designated Unique Agricultural Areas are considered Specialty Crop areas. Farm Diversification: means a range of use and activities that are designed to expand the range of economic opportunities available to farmers and is a generic reference to value added, agriculturally related and secondary agricultural uses that may not be directly related to the agricultural activity conducted on the farm property. Value Retention activities: Activities occurring on farm (or off farm under specific circumstances) to support production and to convert the raw agricultural products to market ready products. Such activities are considered an integral part of the agricultural operation. They are divided into activities that support production including research and maintenance and management of equipment, and activities required to produce market ready commodities including washing, sorting, drying, packaging and similar activities. Value Added activities: mean activities that generally occur on farm (or offfarm under specific circumstances) to add value to agricultural products and their sale and distribution, intended to promote and sustain the viability of farming operations. Such activities are generally considered agriculturerelated uses, and are required to be small scale and related to the farm activity. Value Added Activities may be grouped into three major components: Support Activities, Production Activities and Marketing Activities. Production activities: mean value added farm related activities that include processing of agricultural products (including wineries, canneries, bakeries, cheese factories and similar uses); and distribution and warehousing of agricultural products. Marketing activities: mean value added farm related activities that include a variety of methods of increasing the sales of raw or finished farm products. FINAL September 10, 2009

45 Review of Land Use Policy and Related Implementation Measures Page 38 Regarding Agricultural Value Added Activities Summary Report and Recommendations Such activities may include road side produce stands and other retail facilities for the sale of products, pick your own facilities, agri tourism activities, and experiential activities (such as working farm vacations or culinary schools), agri recreation activities (such as farm mazes, special events facilities (e.g. farm weddings) and educational facilities). Support Activities: means uses that support day to day farm operation and may include machinery repairs, custom work, veterinarians, seed suppliers, equipment dealers and other uses not more appropriately accommodated in settlement areas. Agri tourism activities: mean uses or activities that are considered secondary uses to a farm operation that involve tourist activities that have a direct relationship to the agricultural activities on the farm or surrounding farm activities. Such activities may include farm mazes, seasonal festivals (for example, strawberry social, pumpkin festival, and maple syrup events), equine training/boarding and showing. Agri recreation activities: mean uses or activities that are considered secondary uses to a farm operation that involve recreational activities that are not directly related to agricultural activities but that benefit from a farm/rural location. Such activities may include bed and breakfast accommodations, farm mazes, dining facilities, wedding receptions, educational tours and similar uses). Adaptive re use: means a change in use of surplus farm facilities for approved non farm uses that are compatible with the surrounding farming activities and are of a scale appropriate to the farm operation. Adaptive reuse is oriented to the preservation of heritage buildings and landscapes that would otherwise disappear as a result of their no longer being required for farm purposes. (d) Policies related to value added activities and farm diversification Section 6A provides for the agricultural lands (generally including Specialty Crop Areas (Unique Agricultural Areas) and other prime agricultural areas (Good general agricultural areas)). Policies in Section 6A that currently speak to diversification activities include: FINAL September 10, 2009

46 Review of Land Use Policy and Related Implementation Measures Page 39 Regarding Agricultural Value Added Activities Summary Report and Recommendations Policy 6.A.3 provides general guidance to ensure a viable agricultural industry, including protection of unique and good general agricultural lands; Policy 6.A.6, outlines the permitted uses in the Unique and General Agricultural areas, but does not currently recognize a broad range value added activities or non residential uses on existing lots of record; and reads as follows: In the Unique and Good General Agricultural Areas, the predominant use of land will be for agriculture of all types, including livestock operations. Compatible uses such as forestry and conservation of plant and wildlife are also permitted. In Unique Agricultural Areas, all existing uses lawfully used for such purpose prior to December 16, 2004, the date the Greenbelt Plan came into effect, are permitted. Also, in Unique Agricultural Areas single dwellings are permitted on existing lots of record, provided they were zoned for such as of December 16, 2004 or where an application for an amendment to a zoning by law is required as a condition of a severance granted prior to December 14, 2003 but which did not proceed. Policy 6.A.7, deals with a variety of on and off site agriculture related activities on existing lots, and notes that small scale agriculturally related uses directly related to, servicing, and requiring close proximity to the surrounding agricultural areas may be permitted except where there is a conflict with the Niagara Escarpment Plan and if it is not possible for such uses to locate in designated Hamlets, Villages, Rural Areas or Urban Areas. These uses should be located so the effect on surrounding unique and good general agricultural lands as well as viable farm operations is minimized. Farm markets in agricultural areas should be seasonal in nature with the majority of retail floor space developed to the sale of domestic produce. Local municipal official plans and zoning bylaws should establish maximum retail floor space area provisions and other site design criteria. Policy 6.A.8 generally discourages non agricultural uses in the Agricultural Area, but provides for some limited exceptions, subject to FINAL September 10, 2009

47 Review of Land Use Policy and Related Implementation Measures Page 40 Regarding Agricultural Value Added Activities Summary Report and Recommendations specific criteria. This policy could be interpreted to apply to a variety of farm diversification activities as well as non agriculturally related commercial and industrial uses. It is understood that this policy is intended to apply to uses that would not be considered agriculturerelated or secondary uses as contemplated in the PPS. Policy 6.A.18 addresses secondary uses and farm diversification activities, and reads as follows: Home industries such as welding shops, small engine repair, carpentry, electrical; home occupations within residences such as bed and breakfast facilities with up to six guestrooms and personal services; and uses that produce and market value added agricultural products are permitted as secondary uses to the principal use of a property in an agricultural area provided that: (i) (ii) (iii) (iv) (v) (vi) The use is small in scale and remains ancillary to the principal use on the property; and Any value added agricultural products are from the farm operation on the property; and All of the property remains designated and zoned agricultural; and New secondary uses are compatible with and do not hinder surrounding agricultural uses, and Home industries are permitted by zoning by law amendment; and The use complies with all other policies in the Regional Policy Plan, and No future severance of these secondary uses is permitted. The local municipalities are expected to incorporate more detailed policies in their Official Plans and Zoning By laws to regulate secondary uses (i.e., lot size, lot coverage, setbacks, and the need for site plan control) so that any negative effects on agriculture are minimized. Policies in Section 6.B Policies for Rural Areas also have provisions that would impact farm value added activities, but are generally less restrictive than in the Agricultural Areas. FINAL September 10, 2009

48 Review of Land Use Policy and Related Implementation Measures Page 41 Regarding Agricultural Value Added Activities Summary Report and Recommendations Based on this review, the following revisions to the above referenced policies are proposed: Policy 6.A.3 should be amended by adding bullet points that recognize appropriate farm diversification activities as contributing to the economic viability of farming, as follows: Support for a large range of farm diversification activities in appropriate locations and at a scale suitable to the farm and the rural area where they contribute to economically sustainable agriculture. Recognition of opportunities for small scale on farm alternative and/or renewable energy systems. Policy 6.A.6 should be amended by adding the following clause to the end of the first sentence: as well as associated value retention activities. The first sentence to read: In the Unique and Good General Agricultural Areas, the predominant use of land will be for agriculture of all types, including livestock operations as well as associated value retention activities. Policies 6.A.7 (Small Scale Agriculture Related Uses) and 6.A.18 (Secondary Uses) should be deleted and replaced with a new section 6.A.18 as follows: Farm Diversification Activities 6.A.18 Farm diversification activities are recognized and may be permitted in accordance with the provisions of this Section. On farm diversification is a potentially significant contributor to economically sustainable agriculture in Niagara, contributing to more access to local food, contributing toward the preservation of the agricultural land base and the scenic quality of the agricultural landscape, 6.A.19 Farm Diversification refers to those farm related value added and secondary uses that complement farming activities and provide for increasing the economic value and consumer appeal of an agricultural product or activity. Farm diversification activities shall complement the principal agricultural uses on the property and in the surrounding area, and shall contribute to the sustainability and viability of the farming operation. FINAL September 10, 2009

49 Review of Land Use Policy and Related Implementation Measures Page 42 Regarding Agricultural Value Added Activities Summary Report and Recommendations 6.A.20 Farm diversification activities shall be consistent with the applicable provisions of the Provincial Policy Statement (2005), and conform to the Niagara Escarpment Plan and the Greenbelt Plan. 6.A.21 Local municipalities through their Official Plans and Zoning By laws may define and categorize farm diversification activities and provide specific performance criteria for various types of activities, in accordance with the provisions of the Regional Plan. Some activities may be permitted as of right through local documents; other activities may be recognized through a process that involves site specific zoning. As of Right activities may include such agriculture related uses that are small scale and directly related to the farm operation, or secondary uses that are also small scale and are compatible with the principal agricultural operation on the property and surrounding agricultural lands. Uses that have potential to generate off site impacts will be evaluated and assessed for compatibility with the principal agricultural operation and surrounding agricultural lands through a rezoning process that will also impose controls to mitigate the impacts. Larger scale agriculture related uses or secondary uses may require site specific zoning amendment, where their impact is evaluated and determined to be compatible with the principal agricultural operation and surrounding agricultural lands. 6.A.22 The following criteria shall be considered when identifying whether or not diversification activities should be permitted in the Zoning By law Whether the proposed activity is more appropriately located in a nearby urban or rural settlement area or in the Rural Area; Whether suitable lands are available in nearby rural settlement areas to accommodate the proposed activity; Whether the use is required on or in close proximity to the agricultural operation for it to support and complement the agricultural activity; The extent to which the activity is compatible with the existing farming operation and surrounding farming operations; Whether the scale of the activity is appropriate to the site and the farming operation; FINAL September 10, 2009

50 Review of Land Use Policy and Related Implementation Measures Page 43 Regarding Agricultural Value Added Activities Summary Report and Recommendations Whether the use is consistent with and maintains the character of the agricultural area; The activity does not generate potentially conflicting off site impacts; The activity is limited to low water and low effluent producing uses, the site is capable of accommodating the use on private water and private sewage treatment systems; The activity does not require significant improvements to utilities or infrastructure such as roads or hydro services; Compliance with applicable regulations. 6.A.23 Farm diversification activities are small scale in relation to the principal farming operation. Preference is given to defining scale on the basis of size of the facilities and relationship to other activities rather than less enforceable criteria such as number of employees or value of product purchased. The appropriate scale for diversification activities may vary depending on the type of use and whether the activities are located in the Specialty Crop Area (Unique Agricultural Area) or in the Prime Agricultural Area (Good General Agricultural Area). 6.A.24 Value Added Production activities are intended to primarily serve the farm operation and surrounding local operations, and remain accessory to the principal farming operation in relation to the scale of the operation, its footprint and the product being manipulated. Such facilities may be recognized as of right in local zoning by laws. However, it is recognized that in order to extend the operating season of such facilities, some product may be obtained from surrounding farm operations or non local product may be sourced from other parts of Ontario, particularly in the off seasons to allow the efficient operation of the processing activities and contribute to the ongoing viability of the farm. Such facilities may require a site specific zoning amendment prior to expanding the operation to include non local product. Where the majority of product is local production activities may process product from off farm. 6.A.25 Value Added Marketing activities are intended to primarily serve the farm operation and surrounding local operations, and shall remain accessory to the principal farming operation, both in relation to the scale of the FINAL September 10, 2009

51 Review of Land Use Policy and Related Implementation Measures Page 44 Regarding Agricultural Value Added Activities Summary Report and Recommendations operation and its footprint. Local Official Plans shall establish limits on the scale of various types of marketing activities, within the following guidelines: Roadside stands and pick your own facilities are limited to distribution of product produced on site, with parking areas and structures limited in area; Retail facilities shall generally be small scale, and may be smaller in Specialty Crop Areas; Bed and breakfast facilities shall not exceed 6 bedrooms; Restaurant facilities shall be accessory to existing production facilities (e.g. wineries) and shall generally be small scale, but may be smaller in Specialty Crop Areas; 6.A.26 Agri tourism activities that are directly related to agriculture may be recognized and regulated by the local municipality. The activities shall be subject to the following criteria: The scale of the operation is limited and appropriate to the site and the surrounding area; The activity has minimal impact on and does not interfere with the surrounding agricultural and rural land uses; The activity is compatible with the surrounding agricultural activities; The activity is limited to low water and low effluent producing uses, and the site is capable of accommodating the use on private water and private sewage treatment systems; The activity does not cause off site impacts related to infrastructure or transportation/traffic; The activity does not generate potentially conflicting off site impacts ; The activity complies with all other applicable provisions of the Regional Policy Plan. 6.A.27 Agri recreation activities that are not directly related to agriculture but benefit from a rural location may be recognized and regulated by the local municipality. The activities shall be subject to the following criteria: FINAL September 10, 2009

52 Review of Land Use Policy and Related Implementation Measures Page 45 Regarding Agricultural Value Added Activities Summary Report and Recommendations The scale of the operation is limited and appropriate to the site and the surrounding area; The activity has minimal impact on and does not interfere with the surrounding agricultural and rural land uses; The activity is compatible with the surrounding agricultural activities; The activity is limited to low water and low effluent producing uses; The activity does not cause off site impacts related to infrastructure or transportation/traffic; The activity does not generate potentially conflicting off site impacts; For special events, the activity represents an occasional activity and is not a regular recurring activity; The timing and duration of such activities does not hinder the agricultural operation on the site or on surrounding lands; The activity complies with all other applicable provisions of the Regional Policy Plan. 6.A.28 Home Occupations and Home Industries may be permitted as secondary uses provided they comply to the provisions of this Section. 6.A.29 Small scale on farm alternative and/or renewable energy systems are encouraged in association with agricultural operations, provided the majority of the energy produced is consumed on site, with limited production that would be added to the power grid. Notwithstanding the above, wind energy systems are subject to the provisions of Section 8 in this Plan. 6.A.30 The local municipality may limit the number of farm diversification activities permitted in association with the farm operation. 6.A.31 Uses that are not directly related to agriculture may be considered in special circumstances where the use would allow the ongoing adaptive reuse of existing buildings or structures that have cultural heritage significance and that would otherwise be surplus or fall into disrepair, provided such uses are small scale, would not expand outside of the existing structure or building and would not change the appearance of the farming operation, and FINAL September 10, 2009

53 Review of Land Use Policy and Related Implementation Measures Page 46 Regarding Agricultural Value Added Activities Summary Report and Recommendations their impacts (such as noise, odour, traffic and servicing) on surrounding land uses is minimal and will not hinder surrounding agricultural uses. Such uses may only be considered in site specific zoning amendments by the local municipality. 6.A.32 Local municipalities shall utilize site plan control to regulate the impact of farm diversification activities, in relation to entrances, parking and loading facilities, signage, grading and storm water drainage, buffering and landscaping and landscape protection. 6.A.33 Local municipalities, through their official plans, may provide for the implementation of farm diversification activities through the establishment of a development permit system, based on the degree of compatibility of specific uses in relation to the principal agricultural operation. 6.A.34 Lot creation to accommodate farm diversification activities is not permitted. 6.A.35 Within the Niagara Escarpment Plan area, farm diversification activities shall be as permitted in the Niagara Escarpment Plan. 6.A.36 Local Official Plans may recognize certain farm diversification activities that include farm related commercial and industrial activities on existing undersized lots provided: The uses are agriculturally related uses, are related to surrounding farm operations and require a location in close proximity to the farm operation; The scale of the operation is limited and appropriate to the site and the surrounding area; The agricultural character of the area continues to dominate; It has been demonstrated to the satisfaction of the Region and the local municipality that the proposed use is not more appropriately located on the same parcel as the farm operation, or in a designated settlement area; The activity has minimal impact on and does not interfere with the surrounding agricultural and rural land uses; FINAL September 10, 2009

54 Review of Land Use Policy and Related Implementation Measures Page 47 Regarding Agricultural Value Added Activities Summary Report and Recommendations The activity is compatible with the surrounding agricultural activities; The activity is limited to low water and low effluent producing uses; A residential use is not permitted; The activity complies with all other applicable provisions of the Regional Policy Plan; The use would be subject to a site specific zoning amendment and be limited to the specific use applied for; In specialty crop areas additional limitations will be required. Such uses may include production activities and marketing activities. Where such uses are proposed, they are directed to existing commercial or industrial or other non agriculturally zoned parcels of land, or parcels made unsuitable for agriculture by former land uses. 6.A.37 The scale of value added and diversification activities will vary depending on the scale and use of the principal farming activity. As such, local official plans will provide specific policy guidance geared to the characteristics of the tender fruit areas north of the Escarpment and general agricultural uses south of the Escarpment and Rural areas. 3.4 Recommendations respecting Local Official Plan Policies and Implementation Measures a) Local Official Plan Policies The local municipalities in Niagara have Official Plans with policies that generally reflect the existing PPS and the overall policy direction provided in the Regional Official Plan. The policies vary in scope and comprehensiveness, tailored to the needs of their particular municipality. For example, due in part to the nature of the wine industry in the Town of Niagara on the Lake (NOTL), the policies in the NOTL tend to be more detailed than those found in other municipalities. Each of the local official plans should incorporate additional policies related to value added and diversification activities, to build on the policies proposed for the Regional Plan. The Regional Plan proposes to establish criteria for consideration of value added FINAL September 10, 2009

55 Review of Land Use Policy and Related Implementation Measures Page 48 Regarding Agricultural Value Added Activities Summary Report and Recommendations activities, but remains general in terms of specific definitions of scale, and specific range of uses. The local official plans should take these general criteria and refine them to suit their particular needs. This would include, where appropriate, defining the specific types of activities that are appropriate in the agricultural areas, and their overall scale and location. The following provides an overview of the policy considerations that could be included in the local official plans: (1) Local official plans need to ensure that the definition of agricultural use include value retention activities as integral components of the agricultural operation. (2) The objectives related to sustainable farming activities and farm diversification noted in the Regional Plan should be carried forward into the local official plans. (3) Local Official Plans should determine which farm diversification activities are appropriately recognized as of right in the zoning by law, and those which would require zoning amendment or other approvals prior to their establishment. Specific criteria for each type of activity will be detailed in the Official Plan. a. In general, those uses that have little or no impact on the agricultural operation itself or on surrounding agricultural uses, may be considered as of right, with the appropriate criteria established both in the Plan and ultimately in the zoning requirements. For example, a bed and breakfast establishment may be recognized as a permitted use as of right, subject to compliance with criteria that reflect character of the site, the scale of the operation (e.g. a maximum of three guest rooms), availability of parking facilities, etc. b. Where the impact cannot be determined in advance, then the use may be recognized in the Official Plan, subject to a zoning amendment that would address the official plan criteria and establish the specific conditions for the development of the use. (4) Criteria for various types of value added activities should be established in the local official plans. Criteria should be land based (square footage), which is measurable from a planning perspective (as opposed to criteria that limit number of employees, or value of product that can come in from external sites), and ensure that impacts are limited. (5) Building on the criteria proposed for the Regional Plan (which should be identified as the minimum criteria to be considered), more detailed criteria can be provided for specific types of use. FINAL September 10, 2009

56 Review of Land Use Policy and Related Implementation Measures Page 49 Regarding Agricultural Value Added Activities Summary Report and Recommendations a. For example, a review of the policies in the Niagara Escarpment Plan in Appendix 3 provides options for the level of detail that may be considered for specific uses. For example: i. Bed and Breakfast establishments under Section 2.2 (9) are limited to 3 guest rooms; signs are regulated; 1 parking space per guest room is required; and guidance on availability of meals is provided. ii. Home businesses under Section 2.2 (10) are regulated as to location, visual impact, access, size (25% of floor area to a maximum of 100 square metres); setbacks, etc. iii. Commercial uses and winery incidental uses under Sections 2.10 (3) and (4) provided detailed provisions with respect to the standards and criteria for those uses. b. The provisions of the NOTL Official Plan related to wineries form a good template for considering a variety of agri recreation and agri tourism uses. (6) Appropriately scaled on farm alternative and/or renewable energy systems should be permitted. (7) Farm Diversification activities should be made subject to site plan control, to address issues related to impact on surrounding properties (8) Based on the principles in the Regional Official Plan, the local officinal plans could address re use of buildings or properties or use of existing lots for agriculturally related uses. This should be done by zoning amendment to implement appropriate controls on scale and impact. A possible template showing sample local Official Plan policies is attached as Appendix 7. b) Options for Zoning This study does not go into detail on zoning standards or provisions, as the needs of the various municipalities may be different, and different approaches adopted, particularly with respect to the range of uses, and the specific development criteria. c) Development Permitting System Consideration could be given to implementing a development permitting system to allow a site specific approach to value added uses. Use of such a system may not be appropriate in al municipalities but could be considered in municipalities where there are diverse and multiple requests for a range of value added uses. FINAL September 10, 2009

57 Review of Land Use Policy and Related Implementation Measures Page 50 Regarding Agricultural Value Added Activities Summary Report and Recommendations Authorization to use development permitting is addressed in Ontario Regulation 608/06. Municipalities are authorized to enact by laws to establish a development permit system for specific areas. However to do so the Official Plan must identify the area and set out the scope, goals, objectives and policies associated with the use of a development permitting system. 3.5 Related and Complementary Implementation Measures a) Input to Review of the Provincial Policy Statement Through the preparation of this report, it became apparent that some farm diversification activities, adaptive re use of existing surplus facilities and joint or cooperative processing activities would not meet the definitions or criteria established in the Provincial Policy Statement and are not recognized activities within either specialty crop areas or prime agricultural areas. The PPS allows agriculture related and secondary uses however they are required to be small scale, generally located on the farm parcel itself, located in close proximity to the farm operation and may include value added activities. Prime Agricultural areas and Specialty Crop areas are appropriately reserved for agricultural uses, and any changes to the PPS would continue to reflect the dominance of the agricultural uses. However, within the broader context of the rural and agricultural economy, and improving farm viability, the agricultural policies within the PPS should be reviewed to provide additional policy direction and flexibility that recognizes and lends support to a broader range of agricultural activities, both on farm and off farm, and in situations that allow for shared or cooperative ventures. The following items represent specific areas where refinements to the PPS may be considered: (i) Adaptive Re use of existing buildings/structures on farm operations Through changes in the agricultural land practices, it is not unusual for existing buildings or structures to become surplus to the needs of the farming operation. These may include surplus farm dwellings on consolidated farm properties, or surplus buildings within existing farm operations. As noted elsewhere in this report, through its planning policy statements, the United Kingdom recognizes the landscape and heritage values associated with structures that may no longer be viable from an agricultural perspective, but whose preservation or re use is considered appropriate. Similarly, such buildings may be a source of income for FINAL September 10, 2009

58 Review of Land Use Policy and Related Implementation Measures Page 51 Regarding Agricultural Value Added Activities Summary Report and Recommendations farmers who could rent out the facilities for particular purposes (for example, the development of a vacation home for short term rental of a surplus farm dwelling, or the conversion of a barn or other outbuilding for studios, offices or similar uses could be considered). As such, it is recommended that the PPS contain policy direction that would permit local municipalities the opportunity to consider policies and standards related to the protection and re use of existing surplus structures in the agricultural areas. (ii) Provision for larger scale, shared agriculturally related uses on existing non farm properties or on farm parcels Production activities related to processing of farm products is recognized as an important component of agricultural activity. The PPS recognizes this, however, generally provides for small scale activities or operations. Given the capital costs associated with the provision of some processing activities, it is not necessarily viable for a single operator to develop such facilities, unless that operator has access to the products from other neighbouring farm operators, or to find other ways of extending the time where the facility can be operated. The Federal Government s review of value added activity noted the opportunities for cooperative ventures to allow for economies of scale for such production activities. It is recommended that the PPS provide the opportunity for the establishment of such activities within the agricultural areas. (iii) Provide for upper and lower tier municipalities to provide a broader range of activities or uses in the agricultural area The PPS would continue to identify the overriding provincial interest in ensuring the preservation of the agricultural land base, and maintaining and supporting a strong, sustainable agricultural economy. However, local areas, through their policy documents, may be able to recognize specific opportunities that continue to contribute to sustainable agricultural practices while protecting the agricultural land base. Specific policy approaches are noted in Appendix 5, as it relates to the UK Planning Policy Statement, where the government policy statement provides direction and permission to the local governments for policies on sustainable activities. (Policies 19, 27, 30 and 31 are examples of how the policies can direct local plans to consider specific range of activities). FINAL September 10, 2009

59 Review of Land Use Policy and Related Implementation Measures Page 52 Regarding Agricultural Value Added Activities Summary Report and Recommendations b) Local Food Action Plan As noted earlier, the Region has developed a Local Food Action Plan that contains a series of recommended actions. Some of these, such as the development of policies to permit the production, processing and distribution of local food will be partially addressed through development of value added policies. However there are a number of other recommended actions that could be impacted depending on the nature of planning policies. Therefore there should be ongoing coordination with those responsible for the implementation of the Local Food Action Plan, to ensure that the two processes are mutually supportive. c) Streamlined Approval Process In formulating the recommendations for this report attention has been paid to reducing the process required to establish value added uses. Niagara should work with associated agencies to try and coordinate approvals so, to the extent possible, there is one stop shopping and reduction in over lapping approval process. Clarity in the policies and regulations should assist in simplifying the process. d) Coordination with other Agencies There are a number of groups engaged in the process of supporting agriculture and most share common goals with Niagara. Other regions in the Golden Horseshoe have developed agricultural actions plans which contain many of the same goals and objectives as the Niagara Plan. Co coordinating and sharing ideas with these other regions will reduce costs and strengthen the process of moving forward effectively with policies and controls for value added uses. In addition to addressing other issues such as taxation, the Ontario Federation of Agriculture has taken a position on the management of value added uses. Some of the research and commentary produced by the OFA was helpful in developing this report. Ongoing cooperation with this group which has the support of the majority of farmers in the province, will add value to the process of supporting value added uses while meeting the overriding goal of protecting farm land and the right to farm. For issues such as reasonable taxation policies and long term land rental incentives that respond to the complex circumstances associated with agriculture, the OFA is a strong resource. This is an issue on which the OFA has taken leadership. Given municipality s limited role in being able to influence tax reform joining forces with such a group could improve the ability to effect reform. FINAL September 10, 2009

60 Review of Land Use Policy and Related Implementation Measures Page 53 Regarding Agricultural Value Added Activities Summary Report and Recommendations e) Signage An effective signage protocol is essential to developing successful value added uses. While not a planning issue, support should be give to developing a coordinated signage strategy that is consistent with the intent of the planning policies. f) Heritage Policies As one of the oldest settlement areas in Ontario, Niagara contains many heritage buildings and landscapes. Given the importance of agriculture to the original settlement of the area, many of these heritage features are related to agriculture. Preservation and retention of these important buildings and landscapes was in part the impetus for the recommendations regarding policies to permit the re use of buildings and properties. By allowing creative re use of structures that may have outlived their usefulness for agriculture, Niagara retains its cultural heritage. In support of this goal of retaining heritage buildings and properties through reuse it would be appropriate for the Region to develop a policy on how such amenities will be managed. g) Green Energy Act Many of the green energy initiatives addressed under the Green Energy Act which could be considered as value added uses, have the potential to impact the rural area. However indications are the provincial approach to managing these facilities will be exempt from the local planning process. However because of the implications and the fact that these uses have the characteristics of value added uses, they should be considered as policies are developed. h) Business Development As the policies for value added operations are finalized, economic development agencies should be consulted and advised about the implementation. Support in the form of initial business planning and ongoing management would enhance the success rate for value added operations. FINAL September 10, 2009

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63 Niagara Land Use and Value Added Activities APPENDIX 1 Draft July 15, 2009 Page 1 Assessment Data and Mapping The Region of Niagara has prepared a set of mapping and location data for each municipality identifying: assessed farms with commercial, industrial and wineries, greenhouses and agriculturally related retail and industrial land uses in the agricultural area. As noted from the information below the use of assessment data for this type of exercise is an imperfect tool. Farm properties in the assessment records were identified if they had a commercial (220) or industrial (221) component and located outside the urban area. Farm wineries (223) were also identified. It was found however, that there were codes such as 210 and 213 that identified farms with outbuildings with or without houses on the lot. What was discovered is that these outbuildings could be corn dryers for example. For what ever reason, corn dryers are not identified as an assessed farm industrial use. Two corn dryers in Thorold were picked up that were not otherwise identified. Also, some farms that have a retail component were identified while others were not. White Meadows which sells maple syrup products on its farm was identified while Howell s Pumpkin farm in Thorold which gets hundreds of visitors each year as part of a large Halloween related program and sells a variety of agricultural products on the farm during this period was not identified. All applicable retail uses outside the urban area (409, and 410) and industrial zones (510, 520, 521, 522, 523, 525, 540) were identified. Agriculturally related uses are not broken out with a separate code. To proof the data, each local municipality was asked to review the assessment information and mapping to differentiate agriculturally related uses from urban serving uses in the over all list. Initially NOTL was used to test the appropriate retail and industrial codes. In some municipalities including NOTL, Thorold, Welland, NF, Wainfleet, and Fort Erie site inspections were carried out. Because of the characteristics of assessment codes, it is understood that there are many more retail and industrial type agricultural value added uses in the agricultural area that were not identified. Perhaps because the retail or industrial activity is on a smaller scale these uses are assessed simply as farms. Then some major operations such as large corn dryers were found even on tiny lots identified as farms with outbuildings (210 and 213). We did not attempt to run these two codes because of their vagueness. The Township of West Lincoln prepared a more comprehensive list of value added agricultural uses in its municipality. The information includes large scale greenhouse uses (232). It is assumed the reference to large scale is a function of area under glass but it not clear what is the criterion used here. There is no small scale greenhouse use coded.

64 Appendix 1 - Agricultural Value-Added Locations, Niagara Region Lake Ontario µ Grimsby St. Catharines Niagara-on-the-Lake Lincoln Thorold West Lincoln Pelham Niagara Falls Welland Legend MPAC Property Description Farm with residence - with or without secondary structures; with farm outbuildings Farm without residence - with secondary structures; with farm outbuildings Farm with a residence and having a commercial/ industrial operation Farm with a winery Farm without a residence but having a commercial/ industrial operation Wainfleet Port Colborne Fort Erie Other industrial (all other types not specifically defined) Retail - one storey, generally over 10,000 s.f. Retail - one storey, generally under 10,000 s.f. Standard industrial properties not specifically identifies by other industrial property codes Warehousing Kilometers Source: Niagara Region, Agricultural Value-Added Locations based on MPAC data Lake Erie July 15, 2009

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67 Niagara Land Use and Value Added Activities APPENDIX 2 Draft July 15, 2009 Page 1 REVIEW OF PROVINCIAL POLICY STATEMENT (2005) As it relates to Agricultural Land Use Policies Policy No. Policy PART IV Vision for Ontario s Land Use Planning System p. 3 The Province s natural heritage resources, water, agricultural lands, mineral resources, and cultural heritage and archaeological resources provide important environmental, economic and social benefits. The wise use and management of these resources over the long term is a key provincial interest. The Province must ensure that its resources are managed in a sustainable way to protect essential ecological processes and public health and safety, minimize environmental and social impacts, and meet its long-term needs. PART V - Policies 1.0 Building Strong Communities 1.1 Managing and Directing Land Use to Achieve Efficient Development and Land Use Patterns A planning authority may identify a settlement area or allow the expansion of a settlement area boundary only at the time of a comprehensive review and only where it has been demonstrated that: c) in prime agricultural areas: The lands do not comprise specialty crop areas; There are no reasonable alternatives which avoid prime agricultural areas; and There are no reasonable alternatives on lower priority agricultural lands in prime agricultural areas; and d) impacts from new or expanding settlement areas on agricultural operations which are adjacent or close to the settlement area are mitigated to the extent feasible In rural areas located in municipalities: c) new land uses, including the creation of lots, and new or expanding livestock facilities, shall comply with the minimum distance separation formulae; e) locally-important agricultural and resource areas should be designated and protected by directing non-related development to areas where it will not constrain these uses; f) opportunities should be retained to locate new or expanding land uses that require separation from other uses Coordination A coordinated, integrated and comprehensive approach should be used when dealing with planning matters within municipalities, or which cross lower, single and/or upper-tier municipal boundaries, including: b) managing natural heritage, water, agricultural, mineral, and cultural heritage and Review of Provincial Policy Statement (2005) as it relates to Agricultural Land Use policies

68 Niagara Land Use and Value Added Activities APPENDIX 2 Draft July 15, 2009 Page 2 Policy No. Policy archaeological resources. 1.7 Long-term Economic Prosperity Long-term economic prosperity should be supported by: a) optimizing the long-term availability and use of land, resources.; g) promoting the sustainability of the agri-food sector by protecting agricultural resources and minimizing land use conflicts. 1.8 Energy and Air Quality Alternative energy systems and renewable energy systems shall be permitted in settlement areas, rural areas and prime agricultural areas in accordance with provincial and federal requirements. In rural areas and prime agricultural areas, these systems should be designed and constructed to minimize impacts on agricultural operations. 2.0 Wise Use and Management of Resources Ontario s long-term prosperity, environmental health, and social well-being depend on protecting natural heritage, water, agricultural, mineral and cultural heritage and archaeological resources for their economic, environmental and social benefits Agriculture Prime agricultural areas shall be protected for long-term use for agriculture. Prime agricultural areas are areas where prime agricultural lands predominate. Specialty crop areas shall be given the highest priority for protection, followed by Classes 1, 2 and 3 soils, in this order of priority Planning authorities shall designate specialty crop areas in accordance with evaluation procedures established by the Province, as amended from time to time Permitted Uses In prime agricultural areas, permitted uses and activities are: agricultural uses, secondary uses and agriculture-related uses. Proposed new secondary uses and agriculture-related uses shall be compatible with, and shall not hinder, surrounding agricultural operations. These uses shall be limited in scale, and criteria for these uses shall be included in municipal planning documents as recommended by the Province, or based on municipal approaches which achieve the same objective In prime agricultural areas, all types, sizes and intensities of agricultural uses and normal farm practices shall be promoted and protected in accordance with provincial standards Review of Provincial Policy Statement (2005) as it relates to Agricultural Land Use policies

69 Niagara Land Use and Value Added Activities APPENDIX 2 Draft July 15, 2009 Page 3 Policy No. Policy New land uses, including the creation of lots, and new or expanding livestock facilities shall comply with the minimum distance separation formulae Lot Creation and Lot Adjustments Lot creation in prime agricultural areas is discouraged and may only be permitted for: a) 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; b) agricultural-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; c) a residence surplus to a farming operation as a result of 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. The approach used to ensure that no new residential dwellings are permitted on the remnant parcel may be recommended by the Province, or based on municipal approaches which achieve the same objective; and d) infrastructure, where the facility or corridor cannot be accommodated through the use of easements or rights-of-way Lot adjustments in prime agricultural areas may be permitted for legal or technical reasons The creation of new residential lots in prime agricultural areas shall not be permitted, except in accordance with policy (c) Removal of Land from Prime Agricultural Areas Planning authorities may only exclude land from prime agricultural areas for: a) expansions of or identification of settlement areas in accordance with policy ; b) extraction of minerals, petroleum resources and mineral aggregate resources, in accordance with policies 2.4. and 2.5; and c) limited non-residential uses, provided that: 1. the land does not comprise a specialty crop area; 2. there is a demonstrated need within the planning horizon provided for in policy for additional land to be designated to accommodate the proposed use; 3. there are no reasonable alternative locations which avoid prime agricultural areas; and 4. there are no reasonable alternative location sin prime agricultural areas with lower priority agricultural lands Impacts from any new or expanding non-agricultural uses on surrounding agricultural operations and lands should be mitigated to the extent feasible. Review of Provincial Policy Statement (2005) as it relates to Agricultural Land Use policies

70 Niagara Land Use and Value Added Activities APPENDIX 2 Draft July 15, 2009 Page 4 Policy No. Policy 2.4 Minerals and Petroleum Extraction in Prime Agricultural Areas Extraction of minerals and petroleum resources is permitted in prime agricultural areas, provided that the site is rehabilitated. 2.5 Mineral Aggregate Resources Extraction in Prime Agricultural Areas In prime agricultural areas, on prime agricultural land, extraction of mineral aggregate resources is permitted as an interim use provided that rehabilitation of the site will be carried out so that substantially the same areas and same average soil quality for agriculture are restored. On these prime agricultural lands, complete agricultural rehabilitation is not required if: a) there is a substantial quantity of mineral aggregate resources below the water table warranting extraction, or the depth of planned extraction in a quarry makes restoration of pre-extraction agricultural capability unfeasible; b) other alternatives have been considered by the applicant and found unsuitable. Canada Land Inventory Class 4 to 7 soils, resource on lands identified as designated growth areas, and resources on prime agricultural lands where rehabilitation is feasible. Where no other alternatives are found, prime agricultural lands shall be protected in this order of priority: specialty crop areas, Canada Land Inventory Classes 1, 2 and 3; and c) agricultural rehabilitation in remaining areas is maximized Definitions Agricultural uses: means the growing of crops, including nursery and horticultural crops; raising of livestock; raising of other animals for food, fur or fibre, including poultry and fish; aquaculture; apiaries; agro-forestry; maple syrup production; and associated on-farm buildings and structures, including accommodation for full-time farm labour when the size and nature of the operation requires additional employment. Agriculture-related uses: means those 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. Prime agricultural area: means areas where prime agricultural lands predominate. This includes: areas of prime agricultural lands and associated Canada Land Inventory Class 4-7 soils; and additional areas where there is a local concentration of farms which exhibit characteristics of ongoing agriculture. Prime agricultural areas may be identified by the Ontario Ministry of Agriculture and Food 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. Prime agricultural land: means land that includes specialty crop areas and/or Canada Land Inventory Classes 1, 2, and 3 soils, in this order of priority for protection. Review of Provincial Policy Statement (2005) as it relates to Agricultural Land Use policies

71 Niagara Land Use and Value Added Activities APPENDIX 2 Draft July 15, 2009 Page 5 Policy No. Policy Residence surplus to a farming operation: means an existing farm residence that is rendered surplus as a result of farm consolidation (the acquisition of additional farm parcels to be operated as one farm operation). Rural areas: means lands in the rural area which are located outside settlement areas and which are outside prime agricultural areas. Secondary Uses: means uses secondary to the principal use of the property, including but not limited to, home occupations, home industries, and uses that produce value-added agricultural products from the farm operation on the property. Specialty crop area: means areas designated using evaluation procedures established by the province, as amended from time to time, where specialty crops such as tender fruits (peaches, cherries, plums), grapes, other fruit crops, vegetable crops, greenhouse crops, and crops from agriculturally developed organic soil lands are predominantly grown, usually resulting from: a. soils that have suitability to produce specialty crops, or lands that are subject to special climatic conditions, or a combination of both; and/or b. a combination of farmers skilled in the production of specialty crops, and of capital investment in related facilities and services to produce, store, or process specialty crops. Review of Provincial Policy Statement (2005) as it relates to Agricultural Land Use policies

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75 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 1 Review of NIAGARA EXCARPMENT PLAN 1 As it relates to Agricultural Land Use Policies I Summary of Permitted Uses that may affect value added activities associated with farming operations. Permitted Uses Escarpment Natural Area (Section 1.3) Escarpment Protection Area (Section 1.4) Escarpment Rural Area (Section 1.5) Mineral Resource Extraction Area (Section 1.9) Agricultural Operations (1) Existing X X X Accessory buildings, structures and X X X facilities Incidental uses X X X Home occupations (2) X X Cottage industries (2) X X X Home Industries (2) X X Bed and Breakfast Homes (3) X X X Farm Vacation Homes (3) X X X Mobile or portable dwelling units(s) X X accessory to an agricultural operation (Section ) Small scale commercial uses accessory X X to agriculture (Section ) Winery and Winery incidental uses X X (Section ) Small scale commercial and industrial development servicing agriculture and the rural community X (in non-agric. areas) Notes: (1) Section 2.10 provides direction for agricultural uses. The objective is to encourage agricultural uses in agricultural areas, to protect agricultural areas, to permit uses that are compatible with farming and to encourage accessory uses that directly support continued agricultural use. (2) Section provides restrictions on the uses and size of home businesses depending on where they are located, as noted below. (3) Section provides restrictions on the size and use of bed and breakfast homes and farm vacation homes, as noted below. II Policy No. Policy Section Policy Purpose and Objectives Objectives Part One Land Use Policies 4. To maintain and enhance the open landscape character of the Niagara Escarpment in so far as possible, by such me3ans as compatible farming or forestry and by preserving the natural scenery; (permitted uses summarized in the table above) 1 NIAGARA ESCARPMENT PLAN, Consolidation June 10, 2008

76 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 2 Policy No. Policy Part Two Development Criteria 2.2 General Development Criteria The objective is to permit reasonable enjoyment by the owners of all lots that can sustain development. 2.2(1) Permitted uses may be allowed provided that: (a) The long term capacity of the site can support the use without a substantial negative impact on Escarpment environmental features such as. 2.2 (9) Bed and Breakfast Homes and Farm Vacation Homes: a) A maximum of 3 guest rooms may be provided; b) Signs identifying Bed and Breakfast Homes and Farm Vacation Homes shall be limited to one and be located only on the property which is the subject of the use; c) Signs shall have a maximum size of 0.9 square metres; d) One parking space shall be provided per guest room; e) Where meals are provided, no food or drink shall be offered or kept for sale to anyone who is not a guest of the Bed and Breakfast Home or Farm Vacation Home; and f) Notwithstanding a) above, more than three rooms may be permitted in a Bed and Breakfast Home or a Farm Vacation Home in an existing single dwelling of local heritage value or interest. A Bed and Breakfast or a Farm Vacation Home in an existing single dwelling of local heritage value or interest may only operate with more than three rooms as long as it retains the features that caused it to be designated of local heritage value or interest. 2.2 (10) Home Business The following additional provisions apply to home businesses as defined by this Plan: a) Home businesses shall be confined to the single dwelling or in an addition to the dwelling in the Escarpment Natural Area. b) Home businesses in the Escarpment Protection Area, Escarpment Rural Area and Mineral Resource Extraction Area designations as a first option shall be encouraged to locate in the single dwelling or in an addition to the dwelling, but may be conducted in an accessory building where the need for the use of a separate building can be justified. The justification, for a separate building, shall demonstrate to the satisfaction of the implementing authority the following: i) Why the home business cannot be established within the existing single dwelling or in an addition to the dwelling; ii) That the home business will not result in applications for severance; iii) That the building size and design will result in minimal visual impact and not alter the rural character of the property; iv) That wells and septic systems can accommodate the use with minimal impact; v) That any access and parking requirements can meet engineering and safety standards; vi) That municipal transportation networks will not be unreasonably affected; vii) That the home business will retain the existing rural and agricultural character of the area and remain incidental and secondary to the principal residential or farm use on the property; and

77 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 3 Policy No. Policy viii) Why the home business cannot be appropriately located in a designated Minor Urban Centre or Urban Area. c) Home businesses shall normally be limited to one home business per lot. d) Where the home business is located within the single dwelling or in an addition to the dwelling not more than 25 per cent of the total floor area including any addition to the dwelling shall be devoted to the use to a maximum of 100 square metres (1,075 square feet). e) Where the home business is located in an accessory building not more than 100 square metres (1,075 square feet) of the building shall be devoted to the use. f) In no instance shall there be more than 125 square metres (1,345 square feet) devoted to the use where the home business is located within the single dwelling or in an addition to the dwelling and an accessory building. g) The total floor area requirements set out in subsections d), e) and f) above shall apply to all home business activities where there is more than one home business on a lot. h) Where the home business is located in an accessory building the following apply: the building shall be sited in the residential cluster which shall generally mean a distance of not more than 30 metres (100 feet) from the single dwelling; the use of a common driveway; and the use of shared residential services where possible (e.g. septic system for domestic waste only, well, parking). i) Home businesses shall be subject to the following general requirements: home businesses shall be secondary to the primary residential or agricultural use on the lot; home businesses shall not alter the cultural landscape of the property and be compatible with the surrounding residential or rural community; environmental impacts shall be minimized through compatible design and siting; the home business shall be operated by residents of the household on the lot and no more than two additional persons or their two fulltime equivalents (FTE) who are not members of the household may be employed in the operation of the business on the property; goods or products offered as part of a home business must be produced on the lot and not be imported to the property; where goods or services are offered only limited public retail sales from the property shall be permitted; the production, storage or disposal of waste, toxic or hazardous materials is prohibited; outdoor storage or display of goods, materials or products shall be prohibited; the home business shall not interfere with television and radio reception; and only one unlit sign having a maximum size of 0.9 square metres (9.7 square feet) identifying the home business shall be permitted on the lot. j) Where the professional service being offered is teaching instruction (e.g. music, dance, art) the number of students attending any lesson shall be limited to 5 and overnight accommodation or boarding of students is prohibited.

78 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 4 Policy No. Policy 2.10 Agriculture k) Where the professional service being offered is home day care the number of children being cared for shall not exceed 5 and overnight accommodation or boarding of children is prohibited. l) Municipal official plan policies and standards (e.g. lot size, parking, floor area and retail space) for a home business must be met. m) Municipal and agency permit, licensing and approval requirements must be satisfied (e.g. building, access, health, safety, flood and fill regulations). n) Where a Development Permit is required, such a Permit will not be transferable to a new owner, but the home business use may be considered through a new application. o) Where application is not made under sub-section n) by a new owner, the area of the home business shall: in the case of the home business located in a single dwelling or in an addition to the dwelling, become part of the floor area of the single dwelling. In no instance shall the floor area be used as a second dwelling unit; and in the case of a home business in an accessory building become a nonresidential use which satisfies the definition of accessory building or structure in Appendix 2 of this Plan. The objective is to encourage agricultural uses in agricultural areas, to protect agricultural areas, to permit uses that are compatible with farming and to encourage accessory uses that directly support continued agricultural use (1) Development and the creation of new lots, including a new lot for a bona fide retiring farmer, should maintain and protect agricultural areas from uses considered incompatible with sustaining the agricultural use and/or land base (3) Small Scale Commercial Uses Accessory to Agriculture Small scale commercial uses accessory to agriculture must satisfy the following criteria: a) A small scale commercial use accessory to agriculture may be permitted provided it is subordinate, incidental and exclusively devoted to the principal agricultural use carried out on the farm property by the owner and is not considered a high intensity use out of character with the agricultural area. b) All buildings, structures and facilities, including parking areas, associated with the small scale commercial use accessory to agriculture shall be designed and located to minimize the impact on the principal agricultural use, adjacent land use and the rural open landscape character. c) Notwithstanding the policies that apply to wineries in Part d), the majority of retail sales conducted as part of the small scale commercial use accessory to agriculture shall be limited to the sale of produce grown on the property or produced on the property from the produce grown on the property. This relationship shall be clearly outlined to the satisfaction of the implementing authority in the proposed plans for the development. d) Signage for small scale commercial uses accessory to agriculture shall be subject to Part General Development Criteria. e) A further use incidental to a small scale commercial use accessory to agriculture may be integrated within the accessory operation provided that it does not result in a significant overall intensification of the use. For example, restaurants, banquet and conference facilities shall not be permitted as an incidental use.

79 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 5 Policy No (4) Policy Winery and Winery Incidental Uses In addition to the applicable Development Criteria of the Plan, winery and winery incidental uses must satisfy the following criteria: a) A winery may be permitted provided the winery farm parcel upon which the winery is proposed is a minimum of 4 hectares (10 acres). The minimum lot size applies to the consideration of a proposed winery on an existing lot of record and not to the creation of a lot upon which a winery may be proposed. b) A winery or winery incidental use shall not be severed from the winery farm parcel. c) A minimum of 2 hectares (5 acres) of the arable winery farm parcel upon which the winery is proposed shall be capable of and committed to producing grapes that are used in the winery and provided that a minimum of two-thirds of that area is in full grape production for use in the winery by the time the winery is built. d) That eighty-five percent (85 per cent) of the grapes used in the production of wine come from grapes grown in the region within which the winery is located. This may be reduced in any one year due to a regional crop failure. e) All applications for new or expanded wineries shall be required to submit a traffic analysis that predicts the anticipated volume, scale of vehicles and the capability of the local/regional road to accommodate the anticipated traffic. f) All applications for new or expanded wineries shall submit for approval a detailed sewage system design prepared by a qualified individual, such as a sewage system engineer, and may require the expertise of a hydrogeologist. g) The maximum size of a winery shall not exceed 1.5 per cent of the winery farm parcel to a maximum of 2,323 square metres (25,000 square feet) whichever is the lesser. This area calculation shall not include that portion of the winery that is fully underground. h) The area for the display and retail sales of wine produced on the winery farm parcel and the sale of farm products grown and/or produced from the farm property, and the tasting area may be in addition to but shall not exceed 25 per cent of the total size of the winery aboveground. i) The sale of gift, promotional, and non-local products may be permitted to a maximum of 20 per cent of the retail sales and tasting area and shall be located within the retail sales and tasting area. j) The sale of gift, promotional, and non-local products meet the requirements of the Liquor Control Board of Ontario or the Alcohol Gaming Commission of Ontario. k) Educational and historical displays that are directly related to the wine and grape industry to a maximum size of 10 per cent of the total area of the winery aboveground. l) Limited complimentary food services may be provided within the retail sales and tasting area. m) Outdoor barbecues and picnics at wineries may be permitted provided that adequate and appropriate on-site water and sanitary services are available to the satisfaction of the Public Health Department and relevant authorities. n) Signage for wineries shall be subject to Part o) Restaurants, banquet halls and conference facilities will not be permitted at wineries.

80 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 6 Policy No (4.1) 2.10 (4.2) Policy Winery Incidental Facility a) A single, incidental facility to sell wine with limited food service may be permitted at a winery provided the following criteria are met: i) The incidental facility is appropriately licensed under the Liquor Licence Act; ii) Subject to on-site private sewage systems and water supplies, the maximum number of patrons of the incidental facility is 50 people; iii) The incidental facility is located within the winery building and/or decks/patios attached to the winery building(s) and is not a separate, detached structure; iv) The size of the incidental facility comprises part of, and is not in addition to, the maximum permitted size of the winery and the permitted size of the retail sales and tasting area as per Sections g) and h); v) If the incidental facility has any outdoor seating space then that area (square footage) comprises part of, and is not in addition to, the total maximum permitted winery size and the permitted size of the retail sales and tasting area as per Sections 2.10,4. g) and h); vi) The incidental facility may only operate when the winery is open for public tours or public events and as provided for in the Liquor Licence Act; vii) There shall be no new parking facilities or vehicle access infrastructure constructed to serve this incidental facility unless it can be demonstrated to the satisfaction of the implementing authority that the existing parking and vehicle access infrastructure needs to be expanded as an essential requirement for the operation of the incidental facility or if required to meet any provincial or municipal requirements; viii) Notwithstanding ii) above, municipal servicing may only be permitted: if public health authorities or MOE determines it is the only sustainable means of servicing the winery and the incidental facility for reasons of public health or environmental protection; or if existing municipal servicing is located adjacent to the winery and a lateral connection is approved by the relevant authorities. ix) No other buildings or infrastructure are required to serve this incidental facility except as otherwise provided for in ii), iii), vii) and viii) above; x) Generally, the incidental facility will give priority to serving wine produced at that winery; xi) The food service provided does not exceed light meals as defined in this Plan; and xii) All relevant provincial and municipal requirements are met. Visual Landscape Development at Wineries The visual landscape objective of this section ( ) for the visual landscape criteria that follow is to ensure that new winery development maintains the visual landscape character associated with the Niagara Escarpment and land in its vicinity by: preserving the natural scenery; maintaining the open landscape character; maintaining the cultural heritage landscapes;

81 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 7 Policy No (4.3) Policy maintaining natural vegetation cover, slope, terrain and other natural features (e.g. Escarpment Brow and prominent slopes); protecting the view of the Escarpment and the land in its vicinity; protecting the natural environment; and minimizing land use conflicts. Winery Events Indoor and outdoor events that are incidental to the principal use of the property, subject to the following criteria: a) The event and any related use will not result in the loss of agricultural land and shall be conducted in such a manner as to minimize land use conflicts. b) The applicant for the event shall demonstrate to the satisfaction of the Public Health authorities or the Ministry of Environment, and relevant authorities, that adequate water and on-site sanitary services are available. c) The applicant for the event shall demonstrate to the satisfaction of any relevant authorities that appropriate traffic management and on-site parking is available. d) The event shall be in compliance with municipal requirements. e) The applicant for the event shall include in the application, information related to items a), b), c) and d) above as well as information on the exterior noise to be created by the event, the proposed hours of operation, and in the case multiple events are proposed, the number of these events to be held annually. Appendix 2 Definitions Accessory Building and/or Structure Accessory Use Agricultural Areas Agricultural Use Agricultural Operation Bed and Breakfast Home A detached building or structure that is not used for human habitation, the use of which is naturally and normally incidental to, subordinate to, or exclusively devoted to a principal use or building and located on the same lot. The use of any land, building or structure which is subordinate to and exclusively devoted to the principal use located on the same lot. Means areas where the following lands predominate: a) Specialty crop areas; and/or b) Areas where soil Classes 1, 2 and 3 predominate as defined in the Canada Land Inventory of Soil Capability for Agriculture; and/or c) Small pockets of marginal agricultural land within or associated with a) and b). The land, building or structure used for the purpose of animal husbandry, horticulture, beekeeping, dairying, fallow, field crops, fruit farming, fur farming, market gardening, maple syrup production, pasturage, poultry keeping, mushroom farming or any other farming use and may include growing, raising, small-scale packing and storing of produce on the premises and other similar uses customarily carried out in the field of general agriculture. The carrying out of an agricultural use. Sleeping accommodation for the travelling or vacationing public within a single dwelling which is owned by and is the principal residence of the proprietor, to a maximum of three guest rooms, and may include the provision of breakfast and other meals and services, facilities or amenities for the exclusive use of the occupants. More than three rooms may be permitted in an existing single dwelling of local heritage value of interest. A Bed and

82 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 8 Policy No. Cottage industry Event Farm cluster Farm property Farm Products Farm Vacation Home Home business Home industry Home occupation Incidental use or facility Limited Complimentary Food Service Retail Sales and Tasting Area Policy Breakfast in an existing single detached dwelling of local heritage value or interest may only operate with more than three rooms as long as it retains the features that cause it to be designated of local heritage value or interest. An occupation conducted as an accessory use within a single dwelling or in an addition to the dwelling or an accessory building, performed by one or more residents of the household on the same property. A cottage industry may include occupations such as dressmaking, upholstering, weaving, baking, ceramic-making, painting, sculpting and the repair of personal effects. (Indoor and Outdoor) in the case of a winery, an event that is incidental to the principal use of the property. A group of farm buildings, which includes the farm dwelling, on a property actively involved in agricultural use. Property owned or under the control of the landowners (e.g. leased). Products grown and/or produced on the farm property (e.g. fruit, vegetables, preserves, pies). Sleeping accommodation for the travelling or vacationing public within a single dwelling associated with a farm which is owned by and is the principal farm residence, to a maximum of three guest rooms and may include participation in farm activities and the provision of meals and other services, facilities or amenities for the exclusive use of the occupants. More than three rooms may be permitted in an existing single dwelling of local heritage value of interest. A Farm Vacation Home of local heritage value or interest may only operate with more than three rooms as long as it retains the features that cause it to be designated of local heritage value or interest. Means a cottage industry, home industry or home occupation as defined in this Plan. A small scale use, providing a service primarily to the rural or farming community and which is accessory to a single dwelling or agricultural operation, performed by one or more residents of the household on the same property. A home industry may be conducted in whole or in part in an accessory building and may include a carpentry shop, a metal working shop, a welding shop, an electrical shop or blacksmith s shop, etc., but does not include an auto repair or paint shop, or furniture stripping. An occupation, which provides a service as an accessory use within a single dwelling or in an addition to the dwelling or in an accessory building, performed by one or more residents of the household on the same property. Such occupations may include services performed by an accountant, architect, auditor, dentist, medical practitioner, engineer, insurance agent, land surveyor, lawyer, realtor, planner, hairdresser, desk top publisher or word processor, computer processing provider, teacher or day care provider. A use (e.g. swimming pool) or facility (e.g. to sell wine with limited food service at a winery) normally accessory to but not an essential part of an existing use located on the same lot, but does not include a sign. The provision of complimentary food, such as hors d oeuvres or bread and cheese, for the exclusive purpose of the tasting experience, but shall not be for sale nor include a restaurant. The area within a winery where wine and other farm products are displayed and sold including the hospitality area where wine may be tasted. Limited complimentary food services for the purposes of tasting, but not for sale, may be provided within the retail sales and tasting area.

83 Niagara Land Use and Value Added Activities APPENDIX 3 Draft July 15, 2009 Page 9 Policy No. Winery Winery Incidental Uses Winery Farm Parcel Policy Buildings or structures used for the processing of grapes in the production of wines for sale, including the crushing, fermentation, production, bottling, aging and/or storage of wine and wine-related products as a secondary agricultural use to a vineyard. The winery may include a laboratory and winery administrative office but not implement buildings used to house farm machinery (e.g. tractors, sprayer, etc). Uses that may be permitted incidental to a winery are: 1. A retail sales and tasting area within the winery building. 2. The sale of gift, promotional and non-local products within the retail sales and tasting area. 3. Bus tours (helicopter tours are discouraged). 4. Indoor and outdoor events that are incidental to the principal use of the property, subject to Part Educational and historical displays that are related to the wine and grape industry. 6. Outdoor picnics and barbecues subject to Part m) and provided that adequate and appropriate water and sanitary services are available to the satisfaction of the Public Health Department. 7. An incidental facility serving light meals, as defined in the Plan, and subject to Section a) of the Plan. The existing lot of record upon which the winery is located or proposed to be located.

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87 Niagara Land Use and Value Added Activities APPENDIX 4 Draft July 15, 2009 Page 1 Review of GREENBELT PLAN 2005 As it relates to Agricultural Land Use Policies Policy No. Vision Policy Protects against the loss and fragmentation of the agricultural land base and supports agriculture as the predominant land use; Provides for a diverse range of economic and social activities associated with rural communities, agriculture, tourism, recreation and resource uses. Goals Agricultural Protection a. Protection of the specialty crop area land base while allowing supportive infrastructure and value added uses necessary for sustainable agricultural uses and activities; b. Support for the Niagara Peninsula specialty crop area as a destination and centre of agriculture focused on the agri-food sector and agri-tourism related to grape and tender fruit production; c. Protection of prime agricultural areas by preventing further fragmentation and loss of the agricultural land base caused by lot creation and the redesignation of prime agricultural areas; d. Provision of the appropriate flexibility to allow for agriculture, agriculture-related and secondary uses, normal farm practices and an evolving agricultural/rural economy; and e. Increasing certainty for the agricultural sector to foster long-term investment in, improvement to, and management of the land. 3. Culture, Recreation and Tourism c) Enabling continued opportunities for sustainable tourism development. 5. Infrastructure and Natural Resources a) Support for infrastructure which achieves the social and economic aims of the Greenbelt and the proposed Growth Plan while seeking to minimize environmental impacts; Specialty Crop Area Policies For lands falling within the specialty crop area of the Protected Countryside the following policies shall apply: 1. Within specialty crop areas, normal farm practices and a full range of agricultural, agriculture-related and secondary uses are supported and permitted. 2. Lands within specialty crop areas shall not be redesignated in municipal official plans for non-agricultural uses, with the exception of those uses permitted in the general policies of sections 4.2 to External Connections The Greenbelt Agricultural System is connected both functionally and economically to the prime agricultural resource lands and agri-food sector beyond the boundaries of the Greenbelt. Review of GREENBELT PLAN 2005 As it relates to Agricultural Land Use Policies

88 Niagara Land Use and Value Added Activities APPENDIX 4 Draft July 15, 2009 Page 2 Policy No. Policy To support the connections between the Greenbelt s Agricultural System and the prime agricultural resource areas of southern Ontario, municipalities, farming organizations, and other agencies and levels of government are encouraged to consider how activities and changes in land use, both within and abutting the Greenbelt, relate to the broader agricultural system and economy of southern Ontario and they should plan appropriately to ensure both functional and economic connections are maintained and strengthened General Infrastructure Policies For lands falling within the Protected Countryside, the following policies shall apply: 1. All existing, expanded or new infrastructure subject to and approved under the Canadian Environmental Assessment Act, the Environmental Assessment Act, the Planning Act, the Aggregate Resources Act, the Telecommunications Act or by the National or Ontario Energy Boards, or which receives a similar environmental approval, is permitted within the Protected Countryside, subject to the policies of this section and provided it meets one of the following two objectives: a. It supports agriculture, recreation and tourism, rural settlement areas, resource use or the rural economic activity that exists and is permitted within the Greenbelt; or 3. Infrastructure serving the agricultural sector, such as agricultural irrigation systems, may need certain elements to be located within the vegetation protection zone of a key natural heritage feature or key hydrologic feature. In such instances, these elements of the infrastructure may be established within the feature itself or its associated vegetation protection zone but all reasonable efforts shall be made to keep such infrastructure out of key natural heritage features or key hydrologic features or the vegetation protection zones. 4.5 Existing Uses For lands falling within the Protected Countryside, the following policies shall apply: 1. All existing uses lawfully used for such purpose on the day before the Greenbelt Plan comes into force are permitted. 4.6 Lot Creation For lands falling within the Protected Countryside, the following policies shall apply: 2. Lot creation is also permitted in the following circumstances: c) Minor lot adjustments or boundary additions, provided they do not create a separate lot for a residential dwelling in specialty crop or prime agricultural areas and there is no increased fragmentation of a key natural heritage feature or key hydrologic feature. 3. More specifically, within the specialty crop area and prime agricultural area, lot creation is permitted for: a. Agricultural uses where the severed and retained lots are intended for agricultural uses and provided the minimum lot size is 40 acres within specialty crop area and 100 acres within prime agricultural areas; b. Existing and new agriculture-related uses, provided that any new lot will Review of GREENBELT PLAN 2005 As it relates to Agricultural Land Use Policies

89 Niagara Land Use and Value Added Activities APPENDIX 4 Draft July 15, 2009 Page 3 Policy No. Policy be limited to the minimum size needed to accommodate the use, including a sewage and water system appropriate for such a use; Definitions Agricultural uses Means the growing of crops, including nursery and horticultural crops; raising of livestock; raising of other animals for food, fur or fibre, including poultry and fish; aquaculture; apiaries; agro-forestry; maple syrup production; and associated on-farm buildings and structures, including accommodation for full-time farm labour when the size and nature of the operation requires additional employment (PPS, 2005). Agriculturalrelated uses Means those 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 (PPS, 2005). Normal farm practices Means a practice, as defined in the Farming and Food Production Protection Act, 1998, that is conducted in a manner consistent with proper and acceptable customs and standards as established and followed by similar agricultural operations under similar circumstances; or makes use of innovative technology in a manner consistent with proper advanced farm management practices. Normal farm practices shall be consistent with the Nutrient Management Act, 2002 and regulations made under that Act (PPS, 2005). Prime agricultural areas Means areas where prime agricultural lands (specialty crop lands and/or Canada Land Inventory Classes 1, 2, and 3 soils) predominate. This includes: areas of prime agricultural lands and associated Canada Land Inventory Class 4-7 soils; and additional areas where there is a local concentration of farms which exhibit characteristics of ongoing agriculture. Prime agricultural areas may be identified by the Ontario Ministry of Agriculture and Food 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 (PPS, 2005). Secondary uses Means uses secondary to the principal use of the property, including but not limited to, home occupations, home industries, and uses that produce value-added agricultural products from the farm operation on the property (PPS, 2005). Specialty crop areas Means areas designated using evaluation procedures established by the province, as amended from time to time, where specialty crops such as tender fruits (peaches, cherries, plums), grapes, other fruit crops, vegetable crops, greenhouse crops, and crops from agriculturally developed organic soil lands are predominantly grown, usually resulting from: a. Soils that have suitability to produce specialty crops, or lands that are subject to special climatic conditions, or a combination of both; and/or b. A combination of farmers skilled in the production of specialty crops, and of capital investment in related facilities and services to produce, store, or process specialty crops. (PPS, 2005). Review of GREENBELT PLAN 2005 As it relates to Agricultural Land Use Policies

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93 Niagara Land Use and Value Added Activities APPENDIX 5 Draft July 15, 2009 Page 1 Policy No. Policy REVIEW OF PLANNING POLICY STATEMENT 7 SUSTAINABLE DEVELOPMENT IN RURAL AREAS Government of the United Kingdom (2004) As it relates to Agricultural Land Use Policies and value added or diversification activities 1 Key Principles (vi) All development in rural areas should be well designed and inclusive, in keeping and scale with its location, and sensitive to the character of the countryside and local distinctiveness. 15 Planning policies should provide a positive framework for facilitating sustainable development that supports traditional land-based activities and makes the most of new leisure and recreational opportunities that require a countryside location. Planning authorities should continue to ensure that the quality and character of the wider countryside is protected and, where possible, enhanced.. 16 When preparing policies for LDD (Local Development Documents) and determining planning applications for development in the countryside, local planning authorities should: (i) Support development that delivers diverse and sustainable farming enterprises; (ii) Support other countryside-based enterprises and activities which contribute to rural economies, and/or promote recreation in and enjoyment of the countryside; 17 The Government s policy is to support the re-use of appropriately located and suitably constructed existing buildings in the countryside where this would meet sustainable development objectives. Re-use for economic development purposes will usually be preferable, but residential conversions may be more appropriate in some locations, and for some types of building. Planning authorities should therefore set out in LDDs their policy criteria for permitting the conversion and re-use of buildings in the countryside for economic, residential and any other purposes, including mixed uses.. 19 The Government is also supportive of the replacement of suitably located, existing buildings of permanent design and construction in the countryside for economic development purposes. The replacement of buildings should be favoured where this would result in a more acceptable and sustainable development than might be achieved through conversion, for example, where the replacement building would bring about an environmental improvement in terms of impact of the development on its surroundings and the landscape. Local planning authorities should set out in the LDDs the criter4ia they will apply to the replacement of countryside buildings. Authorities should also set out the circumstances where replacement would not be acceptable and clarify the permissible scale of replacement buildings. 27 (Agricultural Development) The Government recognizes the important and varied roles of agriculture, including in the maintenance and management of the countryside and most of our valued landscapes. Planning policies in RSS (Regional Spatial Strategies) and RDDs should recognize these roles and support development proposals that will enable farming and farmers to: (i) Become more competitive, sustainable and environmental friendly; (ii) Adapt to new and changing markets; (iii) Comply with changing legislation and associated guidance; (iv) Diversity into new agricultural opportunities (e.g. renewable energy crops); or (v) Broaden their operations to add value to their primary produce. Review of UK Planning Policy Statement 7 (2004) as it relates to Agricultural Land Use policies and value added and diversification activities

94 Niagara Land Use and Value Added Activities APPENDIX 5 Draft July 15, 2009 Page 2 Policy No. Policy 30 (Farm Diversification) Recognising that diversification into non-agricultural activities is vital to the continuing viability of many farm enterprises, local planning authorities should: (i) Set out in the LDDs the criteria to be applied to planning applications for farm diversification projects; (ii) Be supportive of well-conceived farm diversification schemes for business purposes that contribute to sustainable de3vleopmetn objectives and help to sustain the agricultural enterprise, and are consistent in their scale with their rural location.. And (iii) Where relevant, give favourable consideration to proposals for diversification in Green Belts where the development preserves the openness of the Green Belt and does not conflict with the purposes of including land within it 31 A supportive approach to farm diversification should not result in excessive expansion and encroachment of building development into the countryside. Planning authorities should: (i) Encourage the re-use or replacement of existing buildings where feasible, having regard to paragraphs 17-21; and (ii) Have regard to the amenity of any nearby residents or other rural businesses that maybe adversely affected by new types of on-farm development. 32 (Equine-related activities) Horse riding and other equestrian activities are popular forms of recreation in the countryside that can fit in well with farming activities and help to diversity rural economies. In some parts of the country, horse training and breeding businesses play an important economic role. Local planning authorities should set out in LDDs their policies for supporting equine enterprises that maintain environmental quality and countryside character. These policies should provide for a range of suitably located recreational and leisure facilities and, where appropriate, for the needs of training and breeding businesses. They should also facilitate the re-use of farm buildings for small-scale horse enterprises (that is, enterprises involving up to ten horses) that provide a useful form of farm diversification. 36 (tourist and visitor facilities) Wherever possible, tourist and visitor facilities should be housed in existing or replacement buildings, particularly where they are located outside existing settlements. 40 (tourist accommodation) Local planning authorities should support the provision of other forms of self-catering holiday accommodation in rural areas where this would accord with sustainable development objectives. The re-use and conversion of existing non-residential buildings for this purpose may have added benefits, e.g. as a farm diversification scheme). Review of UK Planning Policy Statement 7 (2004) as it relates to Agricultural Land Use policies and value added and diversification activities

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97 FARM DIVERSIFICATION WORKSHOP April 27, 2009 The Region of Niagara is undertaking a review of the value added / value retention policies in the Regional and Local Official Plans. This review is in response to the Agricultural Action Plan for Niagara completed by the Regional Agricultural Task Force in July, The Agricultural Action Plan identified key tasks to be undertaken to support agriculture. Three of these tasks were related to the need for flexible value added policies. Over the winter of 2008 / 2009 a working group, comprised of representative from the Task Force, Regional Planning and local planning departments worked to compete a draft report summarizing the issues and recommended actions to be considered in addressing the issue of value added uses in the agricultural area. A draft report was completed in February 2009, circulated and discussed with key stakeholders. A workshop was held on April 27, 2009 to present the findings and obtain input from the agricultural sector. The workshop was held at Herdner s Estate Winery and attended by approximately 50 representatives of the agricultural sector, business operators, government representatives and members of the public. The purpose of the workshop was to obtain input from the stakeholders on the work done to date and on issues that should be considered during the Official Plan policy formulation. The workshop started with a presentation by Margaret Walton of Planscape, the consultants on the project, outlining the context within which the Value Added policies must be developed. Major presentation points included: Purpose of Value added activities: Increase employment and revitalize rural communities; Reduce the economic risk associated with trade activities; Diversify the economic base of rural communities; Increase farmers financial stability; Promote a culture of research and innovation; Reduce dependency on the world price of commodities; Summary of Value Added Workshop April 27, 2009 Page 1

98 Increase opportunities for smaller farms and companies through the development of niche markets; Increase quality and brand recognition of regional and Canadian products; Promote collective solutions and partnerships along the food value chain; Help retain young farmers; Educate the nonfarm population to what farming is about Policy Framework under which Value Added Activities must occur: Provincial o Planning Act o Provincial Policy Statement (PPS) o Greenbelt Plan o Niagara Escarpment Plan o Growth Plan Regional Official Plan (Niagara Region) Local Official Plan o Grimsby o Lincoln o West Lincoln o St. Catharines o Niagara-on-the-Lake o Pelham o Thorold o Niagara Falls o Welland o Wainfleet o Port Colborne o Fort Erie Zoning By-laws Specific to local municipality Summary of Value Added Workshop April 27, 2009 Page 2

99 Process to Date Research Draft Report Draft Policies Obtain Input From: Working Committee Provincial Agencies Agricultural Task Force Workshop for Input PRODUCT: Revised Regional Policies Revised Local Policies Input to Review Provincial Policy Statement Summary of Value Added Workshop April 27, 2009 Page 3

100 Value Added Uses Summary of Value Added Workshop April 27, 2009 Page 4