Berry production in Alberta: Land use barriers and opportunities

Aleksandra Tymczak studies the berry industry – an expanding industry in Alberta’s agricultural system. Here, she discusses the land use planning occurring within the province of Alberta and the impact on berry production

The increasing cost of land

A preliminary barrier faced by berry producers aspiring to scale up their operations is acquiring more land. Here, scaling up inherently requires acquiring extra land to grow more crops, as opposed to building larger facilities or incorporating advanced technologies to increase yield. Producing berries on 40 acres of land is not enough to become a commercial berry producer. One facet related to acquiring extra land for scaling-up operations is the increasing cost of purchasing and owning additional land.

Banks and governments require a certain volume of production, revenue generated, or return on investment before they are willing to provide any funding in the form of loans, creating an interdependency in the system as it is challenging to achieve this financial standing from small-scale berry production. Another impediment is that it takes berries many years before they are ready to harvest and sell, meaning it takes berry producers several years before they can present an income and qualify for loans. Many berry producers will have other full-time jobs and live on off-farm income, enabling them to qualify for loans from Farm Credit Canada to scale up their orchards, but when they finally generate income, they must use it to pay the loans off, and therefore do not generate any additional income from scaling up their productions, deeming it too big of a risk and not worth the investment for many berry producers.

A common concern shared by producers is that the increase in the price of land is not representative of its increasing agricultural value; rather, it is due to urban development and the assessed recreational value of the land. This is a direct result of the goal dependencies established by municipal and county actors that have a long-term goal of accommodating the growth of their populations, as well as the increasing migration of individuals from other parts of Canada and the world.

Increasing residential and urban development

Another facet related to acquiring extra land for scaling-up operations is the increasing residential and urban development posing unique enablers and barriers for berry producers located within urban limits. Family-owned farms used to be within county jurisdictions but with the changing municipal boundaries they now fall under the jurisdictions of urban centres. There are inherent advantages to being located within urban limits, especially those located within the Edmonton area. One of those advantages is being located with proximity to the River Valley and with direct access to the North Saskatchewan River, providing a continuous water source for irrigation and the natural shelter beds the area supplies. However, changes in jurisdictional boundaries also came with increasing designations imposed by municipal actors. For example, even though berry producers may not spray or use any chemicals, they had lost their organic designation because their farm was now considered to be too close to roads. Municipal land use planning also impinges on berry production. For instance, some municipalities are trying to make a stormwater pond on farm properties, to diversify the ecology in the area, but farmers may have shelterbelts in that area. Municipal planners may not have an awareness of what is on the land and the impact that a stormwater pond will have on berry growing.

Since environmental regulations within municipal bylaws are going to become more stringent, landowners may make changes to the property that do not align with berry production. Increased clarification and coordination of environmental regulations along with the varying environmental implications of different types of farming should be identified in formal institutions such as land leases. The increase in residential and recreational development within urban jurisdictions also presents other barriers that impede operations and expansion. The increase in construction activity nearby leads to an increase in trespassing and road maintenance issues regarding proper water flow and ditch grading, which directly impedes accessibility for consumers.

Land use planning in Alberta

Historically, according to the Canadian constitution, land use planning falls under provincial governance actors; however, in the 1990s, this responsibility was transferred to municipal and county governance actors with the dissolvement of the Regional Planning Commissions. ^(1-2) Provincial land use policies are still in place; however, municipalities are not mandated to follow them, in comparison to other provinces such as British Columbia, Ontario, and Quebec, which have legislated policies outlining agricultural zones and urban growth boundaries. ^(2-3)

Understanding the complexities and barriers associated with land use priorities is crucial to assessing the short-term gains related to urban residential development versus preserving land traditionally designated for agricultural use. ⁽⁴⁾ The province of Alberta is home to 31.5% of farmland in Canada and 18.97% of Class 1 agricultural land. ⁽⁵⁾ However, the increasing population trends (Alberta’s growth rate is double the national average) and corresponding economic growth have translated into the prioritization of urban residential, industrial, and commercial development at the expense of prime farmland. ^(1,6) This is especially true within the Edmonton-Calgary corridor, where settlement and farming cultivation efforts were first implemented in the early 1900s. ⁽⁷⁾ For example, within a five-year period between 2006 and 2011, the province saw a 12.5% decrease in the number of farms and a 3.1% decrease in high-quality soil farmland near urban centres. Loss of farmland close to urban centres in lieu of residential, commercial, and industrial development has increased the cost of land, presenting challenges for producers who desire to scale up their operations. ⁽¹⁾

Within the province of Alberta, several producers conduct their berry operations within municipal boundaries. Initially, municipal lands were settled for agricultural purposes in line with the type of soil of the regions. For example, 50% of the soils in these areas are Class 1 soils, which is a substantial proportion, considering that of the 7.3% of land suitable for agriculture in Canada, with only 0.5% containing Class 1 soils. The excellent soil quality in connection with Edmonton’s favourable growing season, moisture conditions, and irrigation source from the North Saskatchewan River naturally led to the settlement and cultivation of these areas for agricultural purposes. However, at the end of the century, this material dependency began to conflict with emerging goal dependencies. Calgary and Edmonton have transitioned to currently having the two highest population growth rates in Canada due to their connections with the energy sector and industrial development. ^(7-8) The municipality of Edmonton became associated with a goal dependency on future population growth, and as a response, in 1982, the municipality annexed 19,768 acres of land, currently in the northeast, southeast, and southwest parts of the city, as future urban growth areas.

These areas now encompass the farmland in which several producers are still conducting their berry operations. This land is still zoned for agricultural use, allowing Edmonton to have one of the largest amounts of agricultural land within urban boundaries; however, several transitions have occurred. ⁽⁹⁾ The majority of this land is rented or leased to land investment companies, and the amount of land owned by farmers has decreased by 43%, which is evocative of the increasing land renting transitions within the agricultural system. ⁽⁹⁾

Renting land

Besides purchasing and owning additional land, renting land instead has become a popular method of acquiring land and an enabler to scale up operations. However, renting land also comes with established written agreements and conditions, which pose additional barriers for berry producers. Most people who have spent their lives managing land in the context of grain or cattle production may not understand everything that encompasses a berry farm. Cattle graze on the land in the spring and are sold off to the market in the fall. By comparison, growing berries is a longer-term investment (several years) before harvest is even attainable and requires numerous layers for functioning (delivery trucks coming and going, customers coming and going, multiple employees weeding, picking, etc.). Therefore, establishing solid relationships with landowners and keeping the farm high functioning with clear expectations on both ends may be a real challenge.

Another important consideration for renters is the need to install irrigation systems as part of the infrastructure requirements. Landowners have to agree that the farmers should install their own irrigation equipment and pipes. Some landowners require the land to be kept neat and clean and have strongly pushed for certain types of irrigation systems to be implemented, such as pivots, which can turn on the water from any smartphone device. Therefore, some berry producers argue that these infrastructure needs pose significant investments that can be challenging when considering renting.

Another important consideration is the location of a berry farm when considering renting or purchasing land. Berry producers rely on the U-pick business model. Thus, ensuring that the farm is within an accessible location for urban consumers is critical for a steady, reliable inflow of sales. Close proximity to urban centres also builds goodwill with consumers and establishes the berry producers’ brand. However, having the competitive advantage of being located closer to the urban consumer base comes at a cost. Land closer to urban centres is more expensive in comparison to land in more rural remote areas due to the residential and recreational value of the land.

References

1. Alberta Agriculture and Forestry. (2018). Fragmentation and Conversion of Agricultural Land in Alberta. Retrieved from https://open.alberta.ca/dataset/a624c225-1573-4b0c-861f-1f565b91dc2a/resource/4d4e53ac-6bc4-49d6-a4c3-50a097103379/download/fragmentation-conversion2018-07-13.pdf
2. Hiley, J., Bonneau, G., Thomas, K., Rousseau, M. (2011). Canadian municipalities satisfy craving for sustainable agriculture and food systems. Municipal World, 121(4), 27–30.
3. Alberta Urban Municipalities Association. (2007). Sustainable land use planning: Analysis and recommendations. Retrieved from https://share.google/6Qhqn0pMUYiKnTlF8
4. Beckie, M. A., Hanson, L., Schrader, D. (2013). Farms or freeways? Citizen engagement and municipal governance in Edmonton’s food and agriculture strategy development. Journal of Agriculture, Food Systems, and Community Development, 4(1), 15-31.
5. Statistics Canada. (2018). Snapshot of Canadian agriculture. Retrieved from https://www150.statcan.gc.ca/n1/pub/95-640-x/2011001/p1/p1-00-eng.htm
6. Wang, H., Qiu, F. (2017). Investigation of the dynamics of agricultural land at the urban fringe: A comparison of two peri-urban areas in Canada. Canadian Geographies, 61(3), 457 470.
7. Vander Ploeg, C. (2008). Big cities and the census: The growing importance of big cities and the demographic landscape. Retrieved from https://cwf.ca/wp-content/uploads/2015/11/CWF_BigCitiesCensus_Report_JAN2008.pdf
8. Statistics Canada. (2021). Census profile, 2021 census of population. Retrieved from https://www12.statcan.gc.ca/census-recensement/2021/dp-pd/prof/index.cfm?Lang=E
9. HB Lanarc Consultants. (2012d). City-Wide Food and Urban Agriculture Strategy: Landowner survey summary. Retrieved from http://www.edmonton.ca/City_government/documents/Food_and_Ag_Landowner_Survey_Summary_Sept_2012.pdf
10. Tymczak, A. (2025). Navigating Challenges and Opportunities in Alberta’s Small-Scale Agricultural Sector: Pathways for New Entrants, Knowledge Transfer, and Institutional Barriers. University of Alberta. DOI: [10.7939/81811] https://ualberta.scholaris.ca/items/88b0ab26-c882-4aec-baf1-cd759c0ca388

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