British Columbia

Business leaders want B.C. to end rule they say hurts farmers — and makes us more reliant on imported food

Two business leaders say a rule that restricts what food B.C. farmers can process on their own land is “outdated” and can result in them taking products to the U.S. for processing instead.

‘50-50’ food processing rule pushing some farmers to get their produce processed in U.S., trade board CEO says

A farmer in a grey shirt and green ballcap bends over to pull potatoes out of a large green field.
Ron Heppell pulls potatoes out of the ground on Campbell Heights farmland in Surrey, B.C., on June 7, 2022. (Maggie MacPherson/CBC)

Business leaders in B.C. are calling on the province to end a rule that they say is hurting farmers and making British Columbians more reliant on imported food. 

In an opinion piece penned in the Vancouver Sun last week, Greater Vancouver Board of Trade CEO Bridgitte Anderson and B.C. Food & Beverage CEO James Donaldson said the so-called "50-50" food processing regulation on agricultural land is "outdated" and "hinders food security, innovation and growth."

In B.C., any food processing done on land designated for farm use — Agricultural Land Reserve (ALR) — is only allowed if half of what is processed is grown on the farm or on a farm co-op. The other half can be sourced from anywhere in the world. 

But if that's not possible, Anderson said farmers and businesses end up taking products to the U.S. for processing, which are then brought back to B.C. for sale. 

"It is not only bad for our economy, it is bad for our food security, it is bad for the climate," Anderson told CBC's The Early Edition

In the Sun article, the pair said the restriction means it would be "economically illogical" for farmers to invest in processing if they're confined to processing only their own crops, rather than being able to process both their own and those of their neighbours. 

Anderson wants to see it eliminated so that more food products can be processed in B.C., which she said is crucial right now, as climate change affects food security around the world and political tensions make trade unreliable. 

"This is our opportunity for us to become our own food superpower, if you will, by just eliminating this one simple rule."

LISTEN | GVBOT CEO on '50-50' food processing rule:
The Vancouver Board of Trade says a rule that requires at least 50 per cent of a processed product originate from the farm on which it's processed is outdated and economically limiting.

In an email to CBC News, the Ministry of Agriculture said the rule exists to "promote farming in the ALR by enabling farms to process their own production, capturing the value-added income from the finished product."

Anderson said when the ALR was established in 1973 it made sense to protect farmers and farmland, but she believes things are different now, and rules should evolve. 

"Times have changed and the kind of manufacturing that happens now on farmland has also changed," she said.  "It is time to take a look at this and remove this rule that simply does not make any sense anymore."

The province didn't respond to questions from CBC News about whether it would reconsider the rule. 

It did, however, say there are more than 800 food processing facilities in the ALR. Of the 51 applications for food processing and non-farm use to the Agricultural Land Commission in 2025, 88 per cent have been approved so far, the ministry said. 

The ministry said B.C.'s food processing industry, both inside and outside the ALR, generates $14 billion in annual sales and employs 40,000 workers. 

With files from Courtney Dickson and The Early Edition