Farmers with hydro towers lobbying for annual compensation

Dec 06, 2024

Believing the time has come for a change, Chatham-Kent farmers, along with the Ontario Federation of Agriculture, are lobbying for annual compensation for those with utility towers on their property.

Bob Kerr and Bill Parks, who are leading the effort, brought a resolution to the OFA on the matter, which was accepted by the organization at its recent annual general meeting.

The resolution stated that while Hydro One pays adequate compensation during initial construction phases, this does not cover the decades after, as landowners “continue to farm around and maintain the towers” into the future.

“The annual expense caused by the easement should be considered injurious affection and needs to be compensated annually, for the life of the easement,” it stated.

Kerr, who has a farm in Raleigh on Fifth Line, just off of Bloomfield Road, has four new towers, which were completed in the summer.

“We can’t grow a crop where a tower is sitting,” he said. “They impair our operations.

Our equipment isn’t small anymore … We’re losing productivity.”

He noted the current compensation covers acquiring the easement, if the installation of the line may lower the value of the entire property, which is an appraiser’s opinion.

It also covers a cost estimate for the disruption of farming operations, crop loss, damage and soil compaction for two years during construction and the four years immediately after that.

Although landowners start with a clear field, Kerr said they now have the “expense, burden and inefficiency” of working around the new tower, the crop loss, weed control expense, and risk of damage, which continue for each year for the rest of the life of the easement.

Parks, a Kent Federation of Agriculture board director, hopes the resolution will have an impact.

He has an old tower from the 1940s on his property, although it’s located in a spot on grass. However, he said they do pose a problem elsewhere for many farmers.

“We need to hang tough and ask as nicely as we know how,” Parks said. “You can’t just drive around these with ease.”

The resolution noted Alberta’s ATCO Electric pays annual compensation, in addition to initial funds. It asked the OFA to lobby the Minister of Energy and Electrification, as well as the Minister of Finance, for the same consideration.

“With energy demand expected to increase by 75 per cent by 2050, our government is focused on delivering affordable, reliable electricity to power jobs, growth, and vital industries like agriculture and greenhouses,” said Joseph Colella, a spokesperson for Stephen Lecce, Minister of Energy and Electrification, in an email.

“As our system expands, we expect electricity transmitters and distributors to work closely with municipalities, farmers, and landowners to meet growing demand in a way that supports affordability and respects local needs,” Colella added. “Unlike the Liberals, who believe in taxation and costly policies that burden families and businesses, our approach prioritizes innovation and collaboration to keep energy affordable for all Ontarians.”

In an email, Hydro One stated its compensation framework offers property owners “fair and reasonable compensation determined by a third-party appraiser” for land rights based on market value.

“This is to provide us with safe access to construct, operate and maintain infrastructure needed to power communities across the province,” the statement read. “We also reimburse property owners for project-related impacts during and after construction, and as needed for safe operation and maintenance of equipment.”

The utility added that electricity use across the province continues to rise and the Independent Electricity Operator forecasts that Ontario’s demand will grow by 75 per cent by 2050.

“We will continue to work collaboratively with the Ontario Federation of Agriculture, its local federation chapters and members as we build critical transmission infrastructure to meet the growing demand, so communities, businesses, industries and farms can thrive for generations,” it stated.

Kerr said he’s trying to remain optimistic the OFA’s voices will be heard on the issue.

“It seems to me this is an ongoing injustice that ought to be corrected,” he said.

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