Safeguarding Alberta’s Agricultural Future: The Challenge of Farmland Preservation

Land is one of the most critical inputs for producing any crop, including canola—and changing land use patterns could impact this valuable resource. The loss of prime agricultural land to other land uses can lead to long-term impacts on food supply and the Albertan economy.

LAND IS SHIFTING OUT OF AGRICULTURAL PRODUCTION

Many Western Canadian cities have evolved from agricultural economies, and therefore best quality farmland is usually found in and around major cities. This can result in reduced access to quality farmland as city populations expand. Based on the Land Suitability Rating System developed by Agriculture and Agri-food Canada, almost 52 thousand hectares of the top three classes of land were taken out of agricultural production between 2011 to 2020. Most of this loss was from a 40-thousand-hectare expansion in urban infrastructure and 25-thousand-hectare expansion in rural residential development (see Chart 1). While this reduction was partially offset by bringing roughly 32 thousand hectares of lower quality land into production, the total agricultural land in production was still reduced and downgraded to lower quality soil.

As agricultural land shifts to less suitable soils, this could have a major impact on crop yields and food availability as land productivity drops. Between 2011 to 2020, Alberta canola production stagnated around 5.7 million metric tonnes and there has been a noticeable decline in production since the 2017 peak of 6.8 million metric tonnes (see Chart 2). While advances in technology have helped to lift production, the loss of prime agricultural land has dampened production and stagnated yields over this period.

The strain on crop production from weather variability is compounded by government regulations and land demands from urban and industry growth. Much of this recent industry growth in land demand comes from new renewable energy projects. While farming can continue around oil and gas wells and wind turbines, once solar panels cover the land there is very limited opportunity for crop growth based on their current setup. That is why large initiatives could have such a negative impact on farmland by potentially removing hundreds of acres from production for the next 50 to 100 years.

Furthermore, without clear and consistent rules for reclamation of green energy projects and well- designed bonds, landowners will likely be left with the burden to clean up these projects at their end of life and could further put at risk the chance of reclamation.

A COMPREHENSIVE STRATEGY IS NEEDED TO SECURE FARMLAND AVAILABILITY

Economics involves allocating scarce resources to meet various needs, and land is a vital yet limited resource facing growing competition. The optimal choice is to allocate land to its highest value use. While to many, agriculture might not seem to be the top value in the short run, as land is diverted away from agriculture for extended periods and in some cases permanently, constrained food supply and increased demand through population growth will ultimately expose the value and importance of agricultural land. Furthermore, choosing renewable energy and urban development before agriculture could damage soil and worsen food supply problems for future generations.

These complex land use challenges require a comprehensive strategy that not only looks at the value of competing land uses today, but also the direct and indirect impacts of various land uses over time. Land use frameworks and regional plans do this by prioritizing and allocating land to various competing demands. While four (Peace Region (Lower and Upper), Red Deer Region and the Upper Athabasca Region) out of seven regions covering Alberta have not started the planning process, the South Saskatchewan Region (in which agriculture is most dominant) indicate the importance of agriculture and resolve to limit farmland conversion and fragmentation.