Walking a Fine Line: Best Practices for On-Farm Diversified Uses to Preserve Farmland and Enable Economic Opportunity

​To share and provide a snapshot of the best practices and strategies identified in the research, the researchers are co-hosting a FREE webinar with the Ontario Federation of Agriculture and the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) in the Agriculture Economic Development and Planning Community of Practice. The webinar, Supporting On-Farm Diversified Uses: Enabling Agricultural Vitality in Your Community, is on December 1, from 10 a.m. to 11:30 a.m. You can register to attend here. 
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Ontario's prime agricultural lands are a finite, non-renewable resource vital for local food production, agri-food exports, and rural economic prosperity. Despite this value, the Canadian Census of Agriculture (2021) reports that Ontario has lost 319 acres of farmland daily over the last five years. Yet, family farms remain the cornerstone of agriculture production in Ontario, with 98 per cent of farms in Canada being family-owned (Statistics Canada, 2022). However, the number of small and medium-sized farms is dwindling while the number of larger farms is increasing (Statistics Canada, 2022). These numbers illustrate the difficulty smaller to midsized family farm operations face in prospering in the modern agricultural economy.
 
Many farmers diversify their land uses and revenue streams to make their agricultural operations viable. The Provincial Policy Statement (2020) and the Guidelines on Permitted Uses in Ontario's Prime Agricultural Areas (2016) introduce On-farm Diversified Uses (OFDUs) as a permitted use in prime agricultural areas, allowing farmers to balance farmland preservation with development opportunities to generate additional revenue on the farm. These pivotal policies in rural land use planning provide an avenue for the land use planning profession to recognize that it is not enough to preserve farmland but that society must also maintain the family farmer. Municipalities are tasked with translating the provincial guidance into a local policy appropriate for their community context.
 
With the support of the Ontario Agri-Food Innovation Alliance, a research project from the University of Guelph explores best practices for municipal governments and agricultural stakeholders to plan for OFDUs in Ontario's agricultural areas. With participation from provincial ministries, over 40 municipal governments, and 150+ farmers, the research explored several burning questions: How should Zoning By-laws regulate these entrepreneurial activities on farms? How should planners assess the appropriateness of OFDUs and deal with issues of scale, compatibility, and cumulative effects? What are the implications on farming, and at what point does diversification negatively impact farm operations and erode the viability of agricultural production? How does this happen without promoting another form of urban sprawl or detracting from the vitality of rural downtowns?  
 

"We've been pushing hard for many years [for on-farm diversified uses] and continue to do so because it's so important. … We've seen the industry thrive. And we've seen people do more than just make a living on their farm – they’re thriving too… This is, in my opinion, one of the only ways to truly preserve the 'family farm.'"    – Southern Ontario Farmer and their experience with farm diversification

"It's the [Province's and municipalities'] job to raise the bar and protect prime agricultural areas in Ontario. [Agricultural] lands aren't places where we expect businesses to grow, because these are places where we expect farm operations to flourish. OFDUs were always intended to be small-scale – they were never intended to get to the point where they are large, successful commercial and industrial businesses."    – Provincial Planner on On-farm Diversification

 The project is now complete, and the final report, Guidelines on Permitted Uses as a Tool to Achieve Farmland Protection, Farm Diversification and Economic Benefits: Assessing effectiveness and identifying best practices, is now available online.
 
For planners familiar with the "Four Tests of a Minor Variance," the report debuts the "Five Tests of an OFDU" Pre-Consultation Compatibility Tool (see Appendix A in the final report). The objective of this tool is to make it easier for municipalities and proponents to understand how to meet all five criteria for OFDUs and put forward an approvable proposal. Some questions are designed to encourage proponents to thoughtfully plan their OFDU to ensure all aspects of compatibility with agriculture have been considered and prioritized. Specifically, how will any proposal-specific adverse impacts on agriculture be avoided, minimized, or mitigated? Likewise, questions also encourage and assist municipalities in reviewing their requirements for OFDUs, whether for processing an individual application or implementing municipal-wide policy or provisions (such as through Official Plans, Zoning By-laws, or Site Plan Control By-laws).
  
The report also identifies multiple best practices, tools, and recommendations for provincial ministries, municipal planners, economic developers, elected officials, farm organizations, and farmers to ensure OFDUs achieve the common goals of promoting agricultural viability while protecting farmland. Some of these include:  

1. Recognize the value of the OMAFRA Guidelines as a helpful tool; it provides a baseline to interpret policy and opens opportunities to promote agricultural viability for farmers.   
2. Implement the guidelines into local-level policy, including definitions in the Zoning By-law, size and scale criterion, and as of right uses. 
3. Municipalities should have pre-consultation meetings with farmers to learn more about what applications, timelines, and fees are required to apply for an OFDU. 
4. Where possible, responsible, and feasible, municipalities should scale back fees and requirements for farmers applying for OFDU development permissions.  
5. Enhance working relationships and collaborations between municipalities, OMAFRA, and various farm organizations, to provide resources to support OFDUs in the agricultural community. 
6. Farmers should maintain positive neighbourly relationships with other farmers and non-farmers to ensure the most successful outcomes for farm operations and OFDUs. 

To share and provide a snapshot of the best practices and strategies identified in the research, the researchers are co-hosting a FREE webinar with the Ontario Federation of Agriculture and the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) in the Agriculture Economic Development and Planning Community of Practice. The webinar, Supporting On-Farm Diversified Uses: Enabling Agricultural Vitality in Your Community, is on December 1, from 10 a.m. to 11:30 a.m. You can register to attend here. 

With Regards, 
  
Wayne Caldwell, PhD FCIP, RPP  
Pamela Duesling, PhD Candidate, MCIP, RPP, EcD 
Emily C. Sousa, MSc, OPPI Candidate Member