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Policy Watch

BC's ALR Food-Processing Proposal — What It Means for Industrial Land

The Province is consulting on letting food processors build on Class 4 to 7 ALR soils without an ALC exclusion, as long as 5% of the primary product is BC-grown. Feedback closes September 18, 2026.

August 18, 2026 · 2 min read · By Samuel Brahem, in association with NAI Commercial

What is on the table

Today, ALR food processing without ALC approval requires 50% of inputs from the farm itself. The proposal, opened July 23 and confirmed August 18, 2026, adds a second lane: Class 5, 6 and 7 soils anywhere in the ALR, and Class 4 soils only where the parcel already has road access and is easily connected to water, sewer and power on the day the rule takes effect. Class 1 to 3 soils are untouched.

  • Roughly 90% of Lower Mainland and Fraser Valley ALR farmland is screened out by the soil filter
  • The Province estimates 500 to 1,000 hectares regionally — 1,235 to 2,470 acres
  • A hard cap of 0.25% of the 2.1 million privately owned ALR hectares province-wide, about 5,300 hectares at most

A permission is not a permit

Qualifying parcels still need a registered agrologist's soil assessment, municipal building permits under zoning that Delta, Richmond, Surrey, Langley and Abbotsford each control, and provincial water, riparian and effluent approvals where they apply. Servicing is the real bottleneck: Class 5 to 7 ground is often low-lying and far from a sewer main. A parcel two kilometres from services is a long-term hold, not a site.

This is a relief valve for food processors, not new warehouse land.

Why industrial owners should care

Food and beverage is BC's second-largest manufacturing sector — $14.3 billion in 2024, 37,430 jobs, $3.7 billion exported. Processors need heavy power, floor drains, wash-down and refrigeration, and today they compete for zoned land against logistics users who can outbid them. Every processor that lands on ALR ground is one less bidder in Delta, Richmond, Langley or Abbotsford.

Expect a use-constrained asset class with a narrow exit, repricing of serviced Class 4 to 7 parcels near industrial nodes, and a fight over whether 5% BC content is enough.

What to do now

  • Occupiers: keep site selection on the zoned inventory that exists; a working pathway is 12 to 24 months out at best
  • ALR owners: pull your soil classification and confirm servicing status, especially on Class 4 land, which only qualifies if serviced on the effective date
  • Investors: early days, but watch for a food-grade niche with a farmland cost basis
  • Anyone affected: write to AF.Minister@gov.bc.ca before September 18, 2026 — occupier voices are usually missing
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Samuel Brahem

Industrial Sales and Leasing, in association with NAI Commercial

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