No Farmers...No Food

Agricultural Land Reserve (ALR) Valuations on Vancouver Island & the Upper Sunshine Coast

In British Columbia, roughly 4.9% of all land in our province is specially designated for farm use within the Agricultural Land Reserve (ALR).  Within the ‘Island’ administrative region (which includes ALR lands located on the entirety of Vancouver Island, Gulf Islands, AND the Upper Sunshine / Central Coast areas of Powell River, qathet RD, Strathcona RD, and Mount Waddington RD), only 1.4% of all land is located within the ALR which equates to ±115,444 hectares or just ±3% of the entire ALR. 

Of the ±115,444 hectares of ALR land in our “Island” ALR region, 79% is privately owned and 21% is public (Unsurveyed Crown Land -UCL or Crown-designated within the Integrated Cadastral Fabric - ICF). 

The Agricultural Land Commission is our province’s independent administrative tribunal that is responsible for exercising decision-making authority in accordance with the Agricultural Land Commission Act.  The ALC also has a very good website, with excellent map data.

When it comes to valuation of operating farms / farm land, whether within the ALR or not, experience is critical.  Agricultural appraisal is not general practice real estate valuation.  It is specialized. It is nuanced. And when it involves properties within British Columbia’s a fulsome understanding of the ALC Act and the various ‘quirks’ of the Agricultural Land Reserve (ALR) designation are required.

Jackson & Associates Ltd., ALR-designated property valuation is not peripheral work. It is a core expertise.

Agricultural (ALR) Properties Are “Special Use”

Many agricultural properties fall into special-use categories where comparable sales data can be “slim and none”.  That reality often holds true across our firm’s key geographic market areas including:

• Comox Valley

• Alberni Valley

• Campbell River

• Powell River and the Upper Sunshine Coast

A review of Landcor Data Corporation data indicates that since January 1, 2024 there have been 354 reported ‘good sales’ of ALR properties (larger than 3 acres) within the ‘Island Region’ – which includes the Upper Sunshine Coast (qathet RD / Powell River).

Agricultural (ALR) properties frequently include:

• Mixed soil capability classifications

• Farm residences and accessory dwellings

• Outbuildings, barns, greenhouses, or livestock infrastructure

• Water rights and irrigation systems

Accurate Valuation of working farms within the ALR requires deeper market investigation and disciplined methodology.  Jackson & Associates has extensive experience valuing:

• Working farms

• Hobby and lifestyle farms

• Larger agricultural holdings

• ALR land with residential influence

• Transitional agricultural lands

“Highest & Best Use” in the ALR Requires Knowledge

The valuation concept of “highest and best use” in agricultural contexts requires an understanding of both farm economics and ALR rules and regulations. 

On Vancouver Island and the Upper Sunshine Coast, this tension is real:

• Is the land viable long-term agricultural acreage?

• Is residential influence driving value?

• Is there speculative pressure near municipal boundaries?

• Does zoning and ALR regulation constrain alternative uses?

Improperly analyzing highest and best use in ALR properties can materially distort value conclusions.

Jackson & Associates applies disciplined highest and best use testing that considers:

• ALR legislation and permitted uses

• Agricultural capability and farm viability

• Market demand within VIREB zones

• Upper Sunshine Coast agricultural market trends

• Income potential where appropriate

• Residential and non-farm influences

The Bottom Line

ALR properties are among the most technically demanding assignments in real estate valuation.

They require:

• Regulatory understanding

• Market depth

• Agricultural awareness

• Analytical discipline

• Local experience

  
  

When the assignment involves ALR-designated lands, experience is not optional.

It is essential. If you require an ALR property valuation we are ready to assist.