The New Provincial Policy Statement and Guidelines on Permitted Uses in Ontario’s Prime Agricultural Areas

Monday, June 16, 2014

This February the Ontario government released the new Provincial Policy Statement (PPS), replacing the 2005 statement (which has been under review since 2010) when it came into effect on April 30, 2014. The Ministry of Municipal Affairs and Housing leads this process, while other ministries contribute.

The Provincial Policy Statement offers province-wide policy direction on matters related to land use planning and development, focusing on matters of provincial interest: healthy communities, water, natural heritage, agriculture, aggregate resources, and public health and safety. Ontario land use planning decisions must be consistent with the policies in the PPS.

Due to amendments in 2006, changes to the PPS could directly affect projects that were in progress even before May, as land use planning decisions must be consistent with policy statements in effect at the time those decisions are made (not the date of application). Thus, if a decision was not made by the 30th of April, it must meet the new PPS standards.

While the overall structure has remained the same from 2005, there are some notable changes. In general, many revisions focused on clarifying policies and better supporting implementation, even down to more direct word choice: should’s have turned into shall’s.

It is also the first time the PPS includes references to Aboriginal interests, including stating: “it is important to consult with Aboriginal communities on planning matters that may affect their rights or interests.”

2014 also brings an improvement on recognizing the diverse needs of rural and northern communities, updates to natural heritage policies (municipalities are now required to identify natural heritage systems), and aggregate policies also see revisions, including required rehabilitation in prime agricultural areas and specialty crop areas. 

The rural policies are likely the ones to see the most fundamental changes, with rural areas now better aligning with public perception of ‘rural’ (all lands outside of urban settlement areas, including prime agricultural areas). Rural lands, areas located outside of prime agricultural areas and settlement areas, can now be the focus of growth where a municipality does not have a settlement area. New policies also provide more protection for agricultural activities in these areas, clearly stating that agricultural uses, agriculture-related uses, and on-farm diversified uses are permitted. 

It is also encouraging to see that planning authorities will have to designate prime agricultural areas and specialty crop areas in accordance with guidelines developed by the province. With this comes further protection of agriculture from impacts of non-farm development, while supporting agricultural uses in rural areas. There is also a strengthened requirement for new or expanding non-agricultural uses to mitigate impacts to surrounding agricultural operations.

While there are existing key priorities in regards to agricultural policies that remain, there are also new and/or revised policies to note. The updated PPS better recognizes the importance of local food and agri-product businesses to long-term economic prosperity, and so new policies have clarified and broadened the range of economic opportunities permitted on farms (categorized into agricultural, agriculture-related and on-farm diversified uses, to be further discussed below).

 Key Changes in Agriculture

These provisions should help to support farming communities, building the foundation for further diversification of on-farm uses such as agri-tourism, and larger-scale agricultural uses.

The guidelines (currently in draft stage) on Permitted Uses in Ontario’s Prime Agricultural Areas will help municipalities achieve PPS consistency while creating opportunities for farmers and their local economy. Permitted uses help meet the key objectives to maintain prime agricultural areas for long-term use in agriculture, and support a thriving agricultural industry and rural economy. Agriculture is to remain the dominant use in prime agricultural areas.

Criteria for permitted uses have been divided into three categories: Agricultural, Agriculture-Related, and On-Farm Diversified. There are a wide range of permitted uses if all PPS criteria are met.

Agricultural uses include activities such as growing crops, raising livestock, and associated on-farm buildings and structures (including value-retaining facilities).

Agriculture-Related uses may or may not be on a farm, but must be compatible with and not hinder surrounding agricultural operations. These activities are directly related to farm operations in the area, support agriculture, provide products or services to farm operations as a primary activity, and must benefit from being in close proximity to farm operations. For instance, farmers’ market selling primarily local produce, or an agricultural research centre.

On-farm diversified may or may not be associated with agriculture. The activities in this category are limited in area and located on a farm, but secondary to the principle agricultural use of the property. They too must be compatible with and cannot hinder surrounding agricultural operations. For instance, value-added uses (ie. winery), workshops, or agri-tourism uses like B&Bs.

Value-retaining activities maintain the quality of raw commodities, like atmosphere controlled storage to prevent spoilage, whereas value-added transforms the raw commodity into a new form that enhances the value, such as pressing apples and bottling cider.

The PPS in full is available to download here. We are pleased to see policy updates that are allowing for a greater range of economic opportunities on farms and in prime agricultural areas.