Tracey Arts is a director with the Ontario Federation of Agriculture.
Ontario’s agri-food sector is an economic powerhouse – producing more than 200 farm and food products, fuelling rural communities, generating nearly 750,000 jobs, and contributing more than $50 billion to Ontario’s annual GDP
Energy is one of the most significant operating expenses on the farm. With adoption of new technologies and the growth potential across the sector, the demand for clean, reliable and affordable energy continues to increase.
Ontario plans to double its electricity grid capacity as well as reducing reliance on fossil fuel-based energy for heating, transportation and industry by transitioning to more renewable sources. This means construction of new utility-scale solar and wind energy facilities as well as battery energy storage systems and installation of new transmission corridors.
To support this development, the provincial government earlier this fall announced a new energy procurement framework for Ontario. New energy infrastructure buildouts will mostly be decentralized in rural regions and will increase demand for access to farmland.
The Ontario Federation of Agriculture (OFA) supports an energy framework that produces and delivers affordable, reliable and sustainable energy to consumers and businesses. We continue to advocate that the framework does not hinder normal farming practices, accommodates on-farm diversified uses like roof top solar, anerobic digestors and combined heat and power, and supports protection of prime agricultural areas.
OFA believes rural Ontario needs access to local energy systems where communities have a say in facility location, design, construction, ownership and management. By supporting the development of community energy systems, the Ontario government can foster rural economic development and help communities reduce carbon emissions while creating jobs and delivering reliable local power.
It was a positive step to see that the provincial framework announcement included the introduction of Agricultural Impact Assessments for new energy projects in prime agricultural areas in the province.
This is a great example of the kind of balanced approach to infrastructure, planning and development that our province needs so we can ensure that we can continue to protect and nurture our agricultural sector while supporting Ontario’s economic growth.
I’m a director on the OFA board and my family and I milk cows and grow crops on our farm near Thamesford, between Woodstock and London. As farmers, we know first-hand how important healthy soils and productive farmland are to our ability to produce food and raise our livestock.
It’s essential that we build this infrastructure in appropriate locations so that we don’t negatively impact the environment and take critical farmland out of production.
These assessments will be the responsibility of the developers of energy projects on farmland, and it’s important that farmers and rural landowners are informed if they are approached with an energy project opportunity.
Before signing a lease or an easement agreement, make sure it fits into your plan for your farm or property. OFA has developed a detailed fact sheet on this issue; here are highlights of some of the important things to consider in your decision-making process.
- Suggested terms are three-year option, 20-year first term, with five-year renewals. Include a clause that lets either side cancel the agreement within 30 days without reason or penalty.
- Keep the area covered by the lease small and make sure the agreement only applies to the actual lot being leased, not any other land you may own.
- Include a map of your property in the agreement that outlines where farm activities aren’t allowed and where new buildings can’t be built so land remains available for new farm operation buildings. Add a clause or map indicating where trees may or may not be cut
- Try to negotiate a lease agreement instead of an easement or conversion to an easement as they can be difficult or impossible to discharge. Include an option to purchase or right of first refusal separate from a lease or easement agreement should the installation owner want to sell.
- Ask the company to provide an annual valid certificate of insurance covering liability, and avoid taking on any responsibility for site security.
- Ensure that the agreement can’t be transferred by a facility owner to any person or company without your approval.
- Don’t allow advertising on the installation, insist on a maintenance schedule to keep it in good condition, and agree up front on what will happen once it needs to be decommissioned.
- Communicate and work with your neighbours and your OFA Member Service Representative and consider seeking legal advice.
More details and the full fact sheet are available on the OFA website.
