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"Point in Time" Regulation Content

Assessment Act

Classification of Land as a Farm Regulation

B.C. Reg. 411/95

NOTE: Links below go to regulation content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to "current to" date of the regulation.)
SECTIONEFFECTIVE DATE
Title September 1, 2012
Part 1, hdg September 1, 2012
Section 1 November 27, 2009
January 14, 2010
September 1, 2012
Part 2, hdg September 1, 2012
Section 2 September 1, 2012
Section 3 September 1, 2012
Section 4 November 27, 2009
September 1, 2012
Section 5 November 27, 2009
September 1, 2012
Section 6 September 1, 2012
Section 6.1 September 1, 2012
Section 7 November 27, 2009
September 1, 2012
Section 8 November 27, 2009
September 1, 2012
Section 9 September 1, 2012
Section 10 September 1, 2012
Part 3 Section 12 to 13 September 1, 2012
Section 13 April 1, 2013
Schedule A September 1, 2012
Schedule September 1, 2012
June 24, 2014
October 17, 2018

 Title BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

Standards for the Classification of Land as a Farm Regulation

 Part 1, heading was enacted by BC Reg 138/2012, effective September 1, 2012.

  Section 1, definition of "agricultural land reserve" was added by BC Reg 275/2009, effective November 27, 2009.

 Section 1 definition of "primary agricultural production" BEFORE amended by BC Reg 4/2010, effective January 14, 2010.

"primary agricultural production" means a use of land for agricultural purposes as approved by the assessment authority, following consultation with the Minister of Agriculture and Lands, and listed on Schedule A of this regulation;

 Section 1 BEFORE re-enacted by BC Reg 138/2012, effective September 1, 2012.

 Interpretation

1  In this regulation:

"agricultural land reserve" has the same meaning as in the Agricultural Land Commission Act;

"December 31" means December 31 of the year preceding the year for which the assessment roll is completed;

"developing farm" means a farm classified in accordance with section 8;

"farm gate price" means the price received by the producer

(a) from the sales of primary agricultural production as evidenced by

(i)  receipts for those sales,

(ii)  the appropriate local price or prices shown in the farm price guide issued by the assessment authority, or

(iii)  statements from crop and livestock insurance payments,

(b) in the case of livestock

(i)  the live weight price received for livestock but not including the killed or dressed prices,

(ii)  the live weight price applied to the weight gained by livestock while being raised on the farm, or

(iii)  the difference between the purchase and sale prices of each animal raised on the farm, and

(c) in the case of horticultural crops that are purchased and transplanted or moved to the farm for further growth, the difference between the purchase and sale prices of the crops;

"farmer's dwelling" means a dwelling which is

(a) located on or adjacent to the farm, and

(b) occupied by a person who is actively involved in the day-to-day activities of that farm;

"fine seed" means forage seed or turf seed;

"gross annual value" means the monetary worth of primary agricultural production based on a 12 month period ending October 31;

"January 31" means January 31 of the year in which a complaint against the assessment could be made to a property assessment review panel under section 32 of the Assessment Act;

"land" includes land covered by water;

"lease" means a written agreement for the rental of all or part of one or more parcels of land;

"livestock raising" means

(a) the rearing of domesticated animals for

(i)  the production of food for human or animal consumption,

(ii)  wool, hide, feather or fur production, or

(iii)  breeding stock for purposes listed in subparagraph (i) or (ii), or

(b) horse rearing;

"medicinal plant culture" means to grow and cultivate plants used to cure disease or to relieve pain;

"October 31" means October 31 in the year preceding the year for which the assessment roll is prepared;

"packing house" means a structure used for the cleaning, sorting, grading, packing or storage of primary agricultural products;

"primary agricultural production" means a use of land for agricultural purposes as approved by the assessment authority, following consultation with the minister responsible for the administration of the Ministry of Agriculture and Food Act, and listed on Schedule A of this regulation;

"rearing" means the breeding or raising of animals for sale;

"unrealized value" means

(a) in relation to primary agricultural production other than livestock raising, the value of the primary agricultural production that has been produced on the farm in the 12 month period ending October 31 that has not been sold but is available and offered for sale or held for sale the following year, or

(b) in relation to livestock raising, where livestock has been raised for food for human or animal consumption on the farm in the 12 month period ending October 31 and has not been sold but is available and offered for sale or held for sale as food the following year,

(i)  the increase in value attributable to weight gain of livestock raised for sale, or

(ii)  the estimated value of livestock born and raised for sale based on the current farm gate price.

[am. B.C. Regs. 343/96, s. 1; 438/97, s. 1; 1999-39-78; 561/2004, s. 1; 292/2007, s. 2; 310/2007, s. 1; 275/2009, Sch. s. 1; 4/2010, s. 2.]

 Part 2, heading was enacted by BC Reg 138/2012, effective September 1, 2012.

 Section 2 BEFORE repealed by BC Reg 138/2012, effective September 1, 2012.

 Application of this regulation

2  This regulation will be used to determine farm classification for assessment purposes for the 1998 and subsequent taxation years.

[am. B.C. Reg. 438/97, s. 2.]

 Section 3 (1) BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

(1)  The application for classification of land as a farm must be delivered to the assessor on or before October 31 in the form prescribed by the assessment authority.

  Section 4 (2) BEFORE amended by BC Reg 275/2009, effective November 27, 2009.

(2)  Land will only be classed as farm where part of a parcel or parcels of land are

(a) necessary to the farm, and

(b) predominantly used for primary agricultural production.

  Section 4 (2.1) was added by BC Reg 275/2009, effective November 27, 2009.

  Section 4 (3) and (3.1) BEFORE amended by BC Reg 275/2009, effective November 27, 2009.

(3)  Despite subsections (1) and (2), where land is part of a farm that lies within an agricultural land reserve designated under the Agricultural Land Commission Act and has no present use, the assessor must classify that land as a farm if

(a) it is part of a parcel, a portion of which is used for primary agricultural production, and the portion used for the primary agricultural production makes a reasonable contribution to the farm operation,

(b) the owner certifies on the prescribed form that the land is being held for the purpose of primary agricultural production, and

(c) the parcel being used for primary agricultural production meets the other requirements of this regulation.

(3.1)  Despite subsections (1), (2) and (3), the assessor must classify land as farm if

(a) the land has no present use,

(b) the land has a highest and best use that is a use not better than that of a farm,

(c) the land is part of a parcel, a portion of which is used for primary agricultural production, and the portion used for the primary agricultural production makes a reasonable contribution to the farm operation, and

(d) the portion being used for primary agricultural production meets the other requirements of this regulation.

 Section 4 BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

 Classification of land as a farm

4  (1)  Unless this regulation provides otherwise, the assessor must classify as farm all or part of a parcel of land used for

(a) primary agricultural production,

(b) a farmer's dwelling, or

(c) the training and boarding of horses when operated in conjunction with horse rearing.

(2)  Land will only be classed as farm where part of a parcel or parcels of land are

(a) necessary to the farm, and

(b) predominantly used for primary agricultural production.

(2.1)  Despite subsections (1) and (2), the assessor must classify land as a farm if the land is used for purposes that contribute to primary agricultural production, including, without limitation, the following purposes:

(a) drainage;

(b) irrigation;

(c) a riparian area;

(d) a buffer;

(e) a headland;

(f) a windbreak;

(g) seasonal feeding or calving grounds;

(h) shelter for livestock;

(i) farm outbuildings;

(j) access to farm outbuildings or other land that is part of the farm operation.

(3)  Despite subsections (1) and (2), the assessor must classify land as a farm if

(a) the land is in an agricultural land reserve,

(b) the land is part of a parcel, a portion of which is used for primary agricultural production,

(c) the portion of the parcel being used for primary agricultural production makes a reasonable contribution to a farm operation and meets the other requirements of this regulation, and

(d) the land

(i)  is used only for purposes ancillary to a farmer's dwelling, or

(ii)  has no present use and is neither specifically zoned nor held for business, commercial or industrial purposes.

(3.1)  Despite subsections (1) and (2), the assessor must classify land as a farm if the land is not in an agricultural land reserve and

(a) the land

(i)  is used only for purposes ancillary to a farmer's dwelling, and

(ii)  is part of a parcel, a portion of which is used for primary agricultural production, and the portion used for primary agricultural production makes a reasonable contribution to a farm operation and meets the other requirements of this regulation, or

(b) the land has no present use, is neither specifically zoned nor held for business, commercial or industrial purposes and meets one of the following standards:

(i)  the land

(A)  has a highest and best use that is a use not better than that of a farm, and

(B)  is part of a parcel, a portion of which is used for primary agricultural production, and the portion used for primary agricultural production makes a reasonable contribution to a farm operation and meets the other requirements of this regulation;

(ii)  the land is part of a parcel, a portion of which, comprising 50% or more of the total area of the parcel that is outside the agricultural land reserve, is used for primary agricultural production or is used for purposes that contribute to primary agricultural production within the meaning of subsection (2.1), and that portion is farmed by the owner and meets the other requirements of this regulation;

(iii)  the land is part of a parcel, a portion of which, comprising 25% or more of the total area of the parcel that is outside the agricultural land reserve, is used for primary agricultural production, and that portion is farmed by the owner and meets the other requirements of this regulation.

(4)  A farm operation is comprised of all or part of a parcel or group of parcels of land

(a) contiguous or not,

(b) owned, or leased in accordance with section 7, and

(c) operated as an integrated unit.

(5)  A farm operation comprised of parcels of land within different assessment areas will only be classed as a farm where the assessor is satisfied that each parcel is

(a) necessary to the farm, and

(b) predominantly used for primary agricultural production.

[am. B.C. Regs. 343/96, s. 24; 438/97, s. 3; 561/2004, s. 2; 275/2009, Sch. s. 2.]

  Section 5 (2.1) was added by BC Reg 275/2009, effective November 27, 2009.

  Section 5 (3) BEFORE amended by BC Reg 275/2009, effective November 27, 2009.

(3)  Despite subsections (1) and (2), the sale of primary agricultural products from the farm must occur during each 12 month period ending October 31.

 Section 5 BEFORE re-enacted by BC Reg 138/2012, effective September 1, 2012.

 Gross annual value requirements

5  (1)  Despite section 4, the classification of land as a farm requires the production of primary agricultural products on the farm by the owner or lessee in either the 12 month period ending October 31, or in the preceding 12 month period, having a gross annual value at farm gate prices of at least

(a) $2 500 if the area of land is between 8 000 m2 and 4 ha,

(b) $2 500 plus 5% of the actual value of the land for farm purposes in excess of 4 ha, if the area of land is more than 4 ha,

(c) $10 000 if the total area of land is less than 8 000 m2, and

(d) despite paragraph (c), $2 500 if the area of land has been reduced to less than 8 000 m2 as a result of expropriation but only if the land remains in the same ownership.

(2)  Despite subsection (1) (c), if land is classified as a farm in 1995 and if the gross value of production is less than $10 000, the land will continue to be classified as a farm so long as

(a) the total area of the owned parcel or parcels is less than 8 000 m2,

(b) the land remains in the same ownership,

(c) the assessor is satisfied that the owner earns the greater part of his livelihood from the sale of primary agricultural products produced on the land, and

(d) the land meets the other requirements of this regulation.

(2.1)  Despite subsections (1) and (2), the classification of land as a farm under section 4 (3.1) (b) (iii) requires the production of primary agricultural products on the farm by the owner in either the 12 month period ending October 31, or in the preceding 12 month period, having a gross annual value at farm gate prices of at least $10 000.

(3)  Despite subsections (1), (2) and (2.1), the sale of primary agricultural products from the farm must occur during each 12 month period ending October 31.

(4)  In determining the gross annual value, the assessor must

(a) consider only the value of primary agricultural production which takes place on the farm, and

(b) include any unrealized value of primary agricultural production grown or raised on the farm in the 12 month period ending October 31.

[am. B.C. Regs. 343/96, ss. 3 and 4; 275/2009, Sch. s. 3.]

 Section 6 BEFORE re-enacted by BC Reg 138/2012, effective September 1, 2012.

 Exception to requirement for sale of primary agricultural products

6  Despite section 5 (3), the assessor may classify land as farm if the primary agricultural production from the land is

(a) not sold but is produced in sufficient quantities to have met the gross annual value requirements if it had been offered for sale, and

(b) either

(i)  grains, oilseeds, fine seeds or pulse seeds, and the assessor is satisfied that the grains or seeds will be available for sale within 12 months after October 31, or

(ii)  any other primary agricultural product that is grown and harvested for processing for sale or to be used in the preparation of manufactured derivatives to be made available for sale within 12 months after October 31.

[en. B.C. Reg. 561/2004, s. 3.]

 Section 6.1 (1) and (2) BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

(1)  In exceptional circumstances, the Lieutenant Governor in Council may waive, by order, any of the sales or production requirements of this regulation for the period and on any terms and conditions specified in the order.

(2)  In this section, "exceptional circumstances" includes natural disasters and any other circumstances the Lieutenant Governor in Council is satisfied are of such a severity as to prevent or make impracticable compliance with certain sales or production requirements of this regulation.

  Section 7 (3) BEFORE amended by BC Reg 275/2009, effective November 27, 2009.

(3)  To be classed as a farm the leased land must

(a) be either

(i)  used for primary agricultural production and make a reasonable contribution to the farm operation, or

(ii)  certified by the owner, on the form prescribed for the purposes of section 4 (3) (b), as being held for the purpose of primary agricultural production, and

(b) be 8 000 m2or greater except if

(i)  the land is in the Agricultural Land Reserve (ALR), and

(ii)  despite section 4 (3), the land is used for primary agricultural production.

 Section 7 (3) BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

(3)  To be classed as a farm the leased land must

(a) make a reasonable contribution to the farm operation, and

(b) be 8 000 m2 or greater except if

(i)  the land is in an agricultural land reserve, and

(ii)  despite section 4 (3), the land is used for primary agricultural production.

 Section 7 (4) BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

(4)  Despite section 5 and section 7 (1), in the case of leases of Crown land issued after October 31, the assessor must classify all or part of the land as a farm if

(a) the application form referred to in section 3 is delivered to the assessor on or before December 31, and

(b) the assessor is satisfied that the farm meets the other requirements of this regulation.

  Section 8 (1) (part) BEFORE amended by BC Reg 275/2009, effective November 27, 2009.

(1)  Despite section 5 (1), (2) and (3), the assessor must classify land not yet in production as a developing farm if the assessor is satisfied the land is being developed as a farm and the application form referred to in section 3 shows that on or before October 31 the following conditions will be met:

 Section 8 BEFORE re-enacted by BC Reg 138/2012, effective September 1, 2012.

 Classification as a developing farm

8  (1)  Despite section 5, the assessor must classify land not yet in production as a developing farm if the assessor is satisfied the land is being developed as a farm and the application form referred to in section 3 shows that on or before October 31 the following conditions will be met:

(a) in the case of products produced from primary agricultural production that

(i)  require less than one year after planting before harvesting occurs, there is a sufficient area prepared and planted to meet the requirements of this regulation on or before October 31 of the following year,

(ii)  require 1 to 6 years to establish after planting before harvesting occurs, there is a sufficient area prepared and planted to meet the requirements of this regulation when harvesting occurs, and

(iii)  require 7 to 12 years to establish after planting, there is a sufficient area prepared and planted to meet the requirements of this regulation when harvesting occurs and the assessor determines that there is a reasonable expectation of profit from farming,

(b) in the case of livestock, poultry, greenhouse or mushroom operations that require 1 year to establish before sales occur,

(i)  the necessary buildings, structures and fencing are completed,

(ii)  the required livestock and poultry are purchased and present, and

(iii)  the assessor is satisfied that the farm will meet the requirements of this regulation on or before October 31 of the following year, and

(c) in the case of aquaculture operations that require 2 years to establish before harvesting occurs,

(i)  the buildings and structures are completed as required to meet the minimum gross annual value level for the farm,

(ii)  the land is seeded, planted or stocked as required to meet the requirements of section 5 when production and sales occur, and

(iii)  the assessor is satisfied that the farm will meet the requirements of this regulation on or before October 31 of the year that production and sales occur.

(2)  The owner or lessee must submit with the application form for approval by the assessor a development plan and site diagram which includes location and details of the crop to be planted, area, date of planting, expected yield, selling price and date of harvest.

(3)  Despite subsection (1) (a), the assessor must classify land as a developing farm if the following conditions are met:

(a) the required area of land is prepared for planting on or before October 31,

(b) the development plan shows that the crop will be planted by the spring of the year following application,

(c) the assessor is satisfied that a viable farm will be established in accordance with the requirements for that crop based on sound agricultural practices, and

(d) the developing farm will meet the requirements of this regulation when harvesting occurs.

(4)  When the farm meets the gross annual value requirements of section 5 of this regulation, the farm will no longer be classified as a developing farm under this section.

[am. B.C. Regs. 343/96, s. 5; 275/2009, Sch. s. 5.]

 Section 9 (1) BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

(1)  This section applies despite other provisions of this regulation.

 Section 9 (2) (b) BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

(b) more than 50% of the primary agricultural products which are cleaned, sorted, graded, packed or stored in the packing house are grown or raised on that farm operation.

 Section 10 (1) (a) BEFORE amended by BC Reg 138/2012, effective September 1, 2012.

(a) reporting from the owner or lessee to ensure that the farm continues to meet the requirements of this regulation;

 Part 3, sections 12 and 13 were enacted by BC Reg 138/2012, effective September 1, 2012.

 Section 13 BEFORE repealed by BC Reg 411/95, effective April 1, 2013.

 Application for the 2013 taxation year

13  (1)  The time for submitting the application to the assessor under section 23 (3.1) (g) of the Act for the 2013 taxation year is extended to March 15, 2013.

(2)  This section is repealed on April 1, 2013.

[en. B.C. Reg. 138/2012, App. s. 15.]

 Schedule A BEFORE repealed by BC Reg 138/2012, effective September 1, 2012.

Schedule A

[am. B.C. Regs. 343/96, s. 6; 397/99.]

PRIMARY AGRICULTURAL PRODUCTION

For the purposes of farm classification under the Assessment Act, primary agricultural production is:

aquaculture

apiculture

Christmas tree culture (plantation and cultured native stand)

dairying

floriculture

forage production

forest seedling and seed production

fruit and vegetable production

grain and oilseed production

herb production

horse rearing

horticulture

Populus species and Salix species intensely cultivated in plantations

insects raised for biological pest control

livestock raising

medicinal plant culture

poultry and egg production

seed production

the raising of crops or animals for food for human or animal consumption

turf production

wool, hide, feather or fur production

but does not include:

(i) the production of manufactured derivatives from agricultural raw materials,

(ii) primary agricultural production for domestic consumption on the farm,

(iii) the production of agricultural by-products,

(iv) agricultural services, or

(v) the breeding and raising of pets, except horses.

 Schedule was enacted by BC Reg 138/2012, effective September 1, 2012.

 Schedule BEFORE amended by BC Reg 135/2014, effective June 24, 2014.

Schedule

[en. B.C. Reg. 138/2012, App. s. 16.]

(section 1 (1))

Qualifying Agricultural Uses

Agricultural uses

1   The following are agricultural uses for the purposes of paragraph (a) of the definition of "qualifying agricultural use" in section 1 (1):

(a) apiculture;

(b) aquaculture;

(c) Christmas tree culture (plantation and cultured native stand);

(d) management of the following trees, for the production of sap or syrup:

(i) trees botanically known as Betula species and commonly known as birch, or

(ii) trees botanically known as Acer species and commonly known as maple;

(e) floriculture;

(f) forage production;

(g) forest seedling and seed production;

(h) fruit and vegetable production;

(i) grain and oilseed production;

(j) herb production;

(k) horticulture;

(l) intense cultivation of plantations of

(i) trees botanically known as Populus species and commonly known as poplar, or

(ii) trees botanically known as Salix species and commonly known as willow;

(m) livestock raising;

(n) medicinal plant culture;

(o) raising insects for biological pest control;

(p) raising crops for food for human or animal consumption;

(q) seed production;

(r) turf production.

Excluded uses

2   The following are excluded uses for the purposes of paragraph (b) of the definition of "qualifying agricultural use" in section 1 (1):

(a) the production of manufactured derivatives from agricultural raw materials;

(b) the production of qualifying agricultural products for domestic consumption on the farm;

(c) the production of agricultural by-products other than breeding products;

(d) agricultural services other than horse stud services;

(e) the breeding and raising of pets other than horses.

 Schedule, section 2 (f) BEFORE amended by BC Reg 200/2018, effective October 17, 2018.

(f) the production of any substance set out in item 1 [opium poppy], 2 [coca] or 17 [cannabis] of the Schedule to the Narcotic Control Regulations under the Controlled Drugs and Substances Act (Canada), other than the production of industrial hemp in accordance with the Industrial Hemp Regulations under that Act.

 Schedule, section 2 (g) was added by BC Reg 200/2018, effective October 17, 2018.