Coldstream reduces agricultural tax burden

by Richard Rolke - Vernon Morning Star posted Feb 24, 2016 at 1:00 AM
Coldstream farm operations are getting a break. A majority of council voted Monday to reduce the tax multiplier from 4.5 to one to 2.4 to one for farm class properties. “There is a comparable average among other municipalities and it was a matter of moving towards that over three years,” said Coun. Doug Dirk. However, some council members opposed farm properties paying 2.4 times the residential rate. “Coldstream already has favourable treatment for improvements on farms,” said Coun. Richard Enns, who states the property that will benefit the most is Coldstream Ranch, which also has non-farm uses. “Coldstream Ranch is not just a farm.” Enns added that Coldstream Ranch receives road maintenance and fire services from the municipality and the district is kept busy with ranch-related issues such as gravel pits and the state of Coldstream Creek. “We should not shift the burden on to other taxpayers.” For 2016, a 2.4 multiplier equates to $15,300 shifted from the farm class to other property classes. Based on the average residential property at $491,473, the shift would increase taxes by $3.25 Staff insisted that the farm tax multiplier does not cover the ranch’s industrial activities. “They get assessed based on the use of the property,” said Trevor Seibel, chief administrative officer. In a report, Patricia Higgins, director of financial administration, stated that a rate of 2.4 to one compares to Coldstream’s business class rate. An attempt by Enns to keep the tax multiplier at 4.5 to one was defeated, with the only support coming from Coun. Gyula Kiss. Coldstream Ranch has called for tax changes for a number of years, and in 2015, owner Keith Balcaen made a presentation to council. “The tax is hurting, it’s hurting a lot. It’s almost like you’re being penalized for being in the agricultural sector,” he said then. A concern for Balcaen was farm properties in other communities paying less tax. Coldstream council has given two readings to the proposed 2016 budget bylaw, which includes a 3.5 per cent tax increase. “It will now go to the public and they will be able to give feedback on the financial plan,” said Mayor Jim Garlick.
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2015 Sources of tax revenues for Coldstream & Vernon

CTV Vancouver Published Thursday, December 17, 2015 4:12PM PST Last Updated Thursday, December 17, 2015 7:17PM PST
Vancouverites have been warned property taxes are on the rise – and now some of the city’s wealthiest residents have found a way to dramatically reduce their tax bill. Nestled along the Fraser River, palatial estates in the Southlands neighbourhood make up some of the most valuable real estate in Vancouver. Now some of the area’s mansion owners are having their property taxes cut in half by classifying their estates as farmland. Properties larger than two acres and with an agricultural income of just $2,500 a year are eligible for farm status with BC Assessment – even if its owners live in a mega mansion. Jennifer Maynard’s family owns Southland’s heritage farm, a working farm that includes horses, a farmer’s market, and other barnyard animals. She says the farm status of the property makes their lifestyle affordable. “We make our living doing this,” she said. “It’s our job – I’m a farmer.” Maynard says she doesn’t mind the area’s rapid growth and influx of millionaires, but doesn’t think it’s fair when people build “barns” to store their vintage cars. “That’s what bothers me – it’s really cheating,” she said. “I don’t think it’s fair.” For example, one waterfront estate that used to be assessed at $6.6 million has had its property tax halved; another 2.3 acre property was assessed as a farm worth just $117,000. (more)

ALR reforms ease way for breweries, value-added plants

by Jeff Nagel - BC Local News posted Jun 15, 2015 at 3:00 PM
Breweries, distilleries and meaderies will be allowed to open up on farmland in the Agricultural Land Reserve provided they meet the same rules set out for wineries. That's one of a series of reforms announced by the province Monday that aim to make it easier for farmers to set up agricultural processing plants and otherwise earn more money from their land. As with wineries in the ALR, at least half the farm ingredients that go into the beer, spirits or mead must be grown on the farm. Agriculture Minister Norm Letnick noted hops farming is on an upswing in areas such as Chilliwack and Kamloops, and predicts the rule change will create an incentive for more farmers to take a risk and get into beverage production. "If that means you can enjoy some mead or some beer on a piece of farmland and that's what it takes to get that farmland back into production, I'm okay with that," Letnick said in an interview at an herb farm in Surrey. ALR land can also now be leased for farming without applying to the Agricultural Land Commission – a move the province hopes gets more unused land into production. Another rule change will make value-added processing easier by letting farms band together as co-ops and count all their members' crops toward meeting the same 50 per cent local content rule. That's expected to allow clusters of farms to feed into a plant in the ALR that makes something like juice or jam without seeking ALC approval. Metro Vancouver previously registered concern that looser rules for non-farm uses may result in less land being farmed and a further climb in farmland prices beyond what new farmers can afford. "Some people wanted us to do more, some wanted us to do less," Letnick said. "I firmly that believe we've come up with the right balance that promotes agriculture and safeguards agriculture but also provide for more opportunities for farmers to earn income on their land." Winery restaurants in the ALR will now be allowed to serve alcohol they didn't produce, such as beer. Some reforms apply only on farmland outside the Lower Mainland, Letnick said, because he said farmers face a tougher struggle to earn a living in areas such as the Interior, North and Kootenays. A second home can now be built on large parcels of at least 50 hectares in the ALR's rural Zone 2 provided residential uses make up less than 43,000 square feet. Letnick said that could allow farmers to build another house for family, lodging for workers, or a rental to earn extra money to support the farm. Similarly, retiring farmers in Zone 2 will be allowed to sell the farm but lease back their farmhouse from the new farm owner, who can build another home on the property. It's hoped that will help those retiring farmers sell their farms but encourage them to stay there and perhaps mentor a new, younger farmer, Letnick said, and meet the challenge of the coming "generational change" in agriculture. Second dwellings are still on the same parcel of land, which can't be subdivided without asking the ALC. More proposed reforms relating to agri-tourism are still being considered and are to be put to local governments for feedback in the fall. Asked if he intends to increase the ALC's budget so it can hire more compliance and enforcement officers – just three officers patrol the entire province for violations like illegal fill dumping – Letnick said that's under consideration. He said the ALC's budget is now $3.4 million, up from $2 million, and potential increases will be discussed with new ALC chair Frank Leonard.

Farmers protest over taxation

by Roger Knox - Vernon Morning Star posted Jun 22, 2014 at 1:00 AM
Spallumcheen farmers are digging in against council over a rise in the township’s farm class rate. The township raised the Class 9 rate by more than double in 2014 to 11.179 from 5.1531 to counteract the effects of 2013’s Bill 8 where farmers enjoyed $120,000 of tax relief. Class 9 is land only and if a resident has Class 9 land and has buildings that are being used on the farm, B.C. Assessment would classify the buildings as Class 1 residential. Prior to Bill 8, if a resident had farm and out buildings in the operation of Class 9 land, farmers were given an assessment exemption to a maximum of $50,000. Bill 8 removed the flat rate of $50,000, going instead to a rate that was either going to be the greater number of up to $50,000 or 87.5 per cent of the exemption. Bill 8 cost the township more than $120,000 in farm tax revenue. “We and many farmers have farm buildings with assessment under $50,000 so we were exempt from tax on them for years,” wrote farmer Ronald Bily in a letter to council. “However, now as a result of Spallumcheen trying to recover revenue lost to them by Bill 8, our tax has risen to almost double.” Bily called Spall’s move “unfair taxation.” “It does nothing to help the average farmer in Spallumcheen,” he wrote. Council said earlier this year the township’s agricultural advisory committee recommended the hike as opposed to recovering the revenue through development cost charges. “If Spallumcheen is unable to make up the shortfall by other means, they must make cutbacks in road construction,” said Bily in his letter. “Failing this, farmers may have to rise up and withhold taxes.” The township will be meeting with the Ministry of Agriculture to discuss options for Bill 8.

Cherry growers get break from City

by Wayne Moore - Kelowna Correspondent - Story: 95133 Jul 16, 2013 / 5:00 am

Spotted Wing Drosophila Fly

Independent cherry growers, concerned about the onset of of the Spotted Wing Drosophila Fly, are getting some relief from the City of Kelowna.  Council Monday agreed to an emergency request to allow cherry growers to have their culled cherries composted at the Glenmore Landfill.  Solid Waste Organic Supervisor, Gordon Light, says should cherries be left on the ground to decompose, the fly can spread and cause harm to the cherry industry.  According to Light, many cherry growers are finding it difficult to find available land on their property to bury the culled cherries and the Ministry of Agriculture does not support disposal by landfilling.  Light says the ministry does support composting as a disposal method.  "At the landfill, composting utilizing the existing Turned Windrow Technology is technically feasible for disposal," says Light.  Council agreed to the method at an anticipated cost of $16.57 a tonne.  Councillor Mohini Singh suggested providing the service for free as is the practice in Oliver and Osoyoos, however, Councillor Andre Blanleil felt the charge was fair. "The cost of $16 per tonne seems very reasonable to me. We already subsidize the farm industry a lot," says Blanleil.  "We have done it for years and I think it's a positive. On the same token we have to look after our costs to the taxpayer as well and I don't feel the cost of $16.57 a tonne is huge and I think it has to be charged like everything else. Everybody pays to use the landfill."  Light says the landfill will see between 200 and 2,500 tonnes of culled cherries between mid July and the end of August.  He says it is important to provide the service to cherry growers immediately.  "This came up quickly in California and spread into Washington," says Light of the Spotted Wing Drosophila Fly . "In 2008 there was more than $500M damage to the crop. I am prepared if the landfill is prepared to accept it as soon as council can approve it."  Because time is of the essence and final reading will not take place until the end of the month, city staff will try and figure out something that can work for everybody.
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Spotted wing Drosophila - A new vinegar fly pest in British Columb A new vinegar fly pest in British Columbia. Management: • Good sanitation practices are critical to controlling spotted wing drosophila.

Backyard chickens take flight in rural areas

By Richard Rolke - Vernon Morning Star Published: March 07, 2013 1:00 AM
Food security has been given a boost in the North Okanagan.  Regional District of North Okanagan directors adopted bylaw changes Wednesday that will permit hens in residential and rural zones in the five electoral areas. The previous rules didn't allow for chickens as a food source. "You can have chickens in Vernon and Kelowna but it was ridiculous because you couldn't in the rural areas," said Jackie Pearase, rural Enderby director. The bylaw covers issues such as odour and the construction and location of hen houses. Roosters will not be allowed as a way of reducing noise for neighbours. RDNO staff have also developed best management practices on keeping chickens.

Agricultural plan takes root

Richard Rolke - Vernon Morning Star  Published: July 17, 2011 1:00 AM
 Coldstream politicians believe a vision for agriculture has been established in the community. On Thursday, council adopted an agricultural plan and it will be added to the municipality’s official community plan.  “It’s important for there to be a focus on agriculture because it’s an important part of the economic system,” said Coun. Richard Enns.  “There are good approaches that will benefit farmers in how they use the land. There’s opportunities for agri-tourism and housing for farm workers.”  The process leading to the agricultural plan has been underway for a number of years. “It’s been a long time coming,” said Coun. Maria Besso.  “I’m hoping it will help preserve the rural character of Coldstream. It will reiterate the importance of helping farmers and we could possibly encourage farmers’ markets or urban chickens.” While most of the jurisdiction for agricultural land use falls with the provincial government, Besso says there is a need for the municipality to get involved because farming is vital to many local families. “The plan states the district will advocate on behalf of agriculture,” she said.However, parts of the plan have come under fire. Some property owners are upset with limiting future parcel sizes in the Agricultural Land Reserve to a minimum of 10 hectares (24.7 acres). The minimum is currently set at two hectares (approximately five acres). Critics claim that large parcels are too expensive to purchase and that will deter people from entering farming. Besso, though, says lot sizes will be addressed during a zoning process and she believes limiting future parcel sizes is important. “Much of Coldstream is already subdivided into small parcels so this is just preserving the large lots that are left,” she said.

CANADA & B.C. INVEST IN PROVINCIAL TREE FRUIT INDUSTRY

KELOWNA – The Government of Canada, in partnership with the Province of British Columbia, announced today an investment of $5 million to support the tree fruit industry. This funding will deliver real results for farmers by helping to develop new marketing opportunities, infrastructure, and further improve orchard pest management. “Canada’s Economic Action Plan is putting farmers first, by helping to increase production and sales, and creating more opportunities for farmers to get their product to market,” said Stockwell Day, President of the Treasury Board and Minister for the Asia-Pacific Gateway, on behalf of Agriculture Minister Gerry Ritz. “This investment will allow the tree fruit industry to find new technologies that will help them stay ahead of the curve in the global market.” “This is a significant investment that will give tree fruit growers in this province the innovative edge they need to strongly promote B.C. grown fruit and compete with producers in other regions,” said Minister of Agriculture and Lands Steve Thomson. “In our discussions, the industry identified some areas, such as marketing and infrastructure, where they wanted to focus efforts and make further improvements.”The Province of B.C. announced $2 million in funding, and the Federal Government will provide an investment of $3 million more. This combined funding will be used for new environmentally friendly packing and storage infrastructure, marketing opportunities that raise the profile of fresh and processed apples, and to build on work accomplished by the sterile insect release program in the Okanagan and Kootenay regions.

For more information on this program visit www.agr.gc.ca/agriflexibility.

For more information on the Sterile Insect Release program, see http://www.oksir.org/.

New policy to apply DCCs to farmers could be crippling

Jennifer Smith - Kelowna Capital News Published: March 12, 2010

Members of Kelowna’s agricultural advisory committee told the city Thursday they believe plans to charge farmers development cost charges need tweaking. Across the province, farmers and municipalities are struggling to devise a system for adding the levies to new buildings that are built on farmland. Until last year, development cost charges, or DCCs, were only applied to development with four or more units; but the province has now made it possible for communities to charge the levies on individual buildings, meaning DCCs can now be charged on commercial ventures on farms.

“Even within the development community (we find) confusion as to what a DCC is, when it is applied and how they are determined and what they pay for,” said John Vos, City of Kelowna community services general manager. Figuring out how to apply the new rules is open to interpretation and the process has not come easily in Kelowna where local government staff have to try and explain the complicated DCC system, then explain what has changed.

Still, the city’s agricultural advisory committee came armed with concerns the new charge could cripple legitimate farmers. “If you had an operation where you were peeling garlic (in a new building), then you’re never going to recoup the DCC on that,” said longtime farmer Domenic Rampone, noting there are major differences between the types of commercial agriculture operating within the valley.

At times the discussion was specific. For example, the city only plans to charge DCCs on fruit stands where the building is worth more than $150,000. The AAC members said it’s still entirely possible a farmer could pay that out to build a stand, particularly with the storage and refrigeration needed, and still not pull down a profit large enough to ensure the DCC does not kill the business. Vos countered the argument, saying the same rational could just as easily be applied to a residential homeowner who has several children and needs a large home to house them, but doesn’t have much money to spare for the tax. It was a moot point for committee member Brian Heichert who argued the city needs to understand agriculture is a societal issue. “It’s not apples to apples,” he said.

The plan is essentially to apply commercial DCCs to farms building new commercial buildings, but Heirchert pointed out the problem. “…You can’t take a system that’s built for industry and apply it to agriculture,” he said. Where industry can react to market change and a manufacturer can switch products, or adjust their product to meet market demand, to a certain extend food production and feeding the masses isn’t always something you can tinker with, he said. And a city needs food.

The municipality will consult the Economic Development Commission and the B.C. Tree Fruit Association as city staff try to hone in on a formula that works. When all three parties have been consulted, the matter will return to council. City council sent the matter out to the advisory bodies for extra feedback after they failed to agree on how the legislative changes should be applied, expressing concern they did not have enough information.