How compensation is considered
When property is required for the project, Alto will treat owners and tenants fairly and work towards a negotiated agreement that considers all financial impacts over time. Compensation will be based on established principles, while taking into account the specific circumstances of each property and each situation.
Principles
The market value of a property represents what it would reasonably sell for on the open market. This value is not only based on how it is being used today, but also based on its highest and best use.
For example, a property used today as a single-family home may have a higher value if the land is zoned for future redevelopment. In that case, compensation would reflect its realistic development potential, not only its current residential use.
Disturbance costs cover the real-life costs and inconvenience of being relocated. This can include moving expenses and the time, effort, and disruption involved in finding and settling into a new home, relocating a business, or re-establishing a farm operation.
Where only part of a property is acquired, compensation will reflect any effect on the remaining property. This could include reduced access, an awkward parcel shape, loss of parking, reduced efficiency, or other changes that affect the usefulness or value of the remaining property.
Where a property supports a business or farming operation, Alto will consider the financial impact of the acquisition over time. This may include lost income, reduced productivity, crop losses on a 100-year period, temporary drainage issues, operational disruption, relocation costs, or the time needed to re-establish the operation elsewhere.
Some properties are not easy to replace. A property’s unique features, specialized improvements, or a location that is difficult to replicate may also be taken into account.
Compensation will be informed by independent professional appraisals that reflect the market value of the property at the time of negotiation. These appraisals will exclude any reduction or appreciation in value caused by the project itself or by prior announcement of the project.
Property owners are encouraged to obtain their own independent legal advice and appraisal. Alto will also compensate those fees. Where more than one appraisal is prepared, both will be considered as part of the negotiation process.
A fair outcome is not always limited to financial compensation alone.
Before compensation, we are committed to working with property owners to implement mitigation solutions that reduce impacts directly. This can include replacement arrangements, technical improvements, operational support, or other measures that address the real-world impact of the project.
These solutions may be considered alongside financial compensation to help achieve an outcome that is fair, workable, and responsive to the owner’s circumstances.
Compensation by property type
Major infrastructure projects can have lasting impacts on agricultural operations, and Alto recognizes that compensation frameworks built for residential or commercial properties do not fully address the realities of farming.
Compensation for agricultural land will reflect impacts over time, such as the loss of productive acreage, drainage disruption, crop losses, severance of an integrated farming operation, restrictions on future expansion, and operational inefficiencies affecting the remaining land.
Compensation will reflect market value, any impact on the remaining property where only a portion is acquired, and disturbance or relocation costs where applicable.
Compensation will reflect the market value of the property, including improvements, business impacts, relocation costs, and any effects on the remaining operation if only part of the property is acquired.
If a property is rented, compensation will consider any impact on the owner’s rental income. Tenants may also receive compensation if they need to relocate. Farm tenants, including those under cash rent or crop share arrangements, will be engaged directly and compensated separately from the property owner where applicable.
Alto recognizes that some community properties have importance beyond their market value. In rare cases where such properties cannot be avoided, they will be approached with special care and sensitivity.
Where impacts on protected or conserved properties cannot be avoided, they will be assessed with respect to the protections in place and their intended purpose.
For some properties, only temporary access may be required, for example during construction or to store materials. In such situations, property owners will be compensated for any impact caused for the duration of time the property is in use by Alto.
Detailed examples of how compensation would be determined in acquisitions
You operate a 50-hectare cattle farm that has been in your family for decades. The property includes pasture land, a farmhouse, barns, fencing, and an established cattle operation. Alto needs to acquire a 3-hectare strip of land that crosses your property and consequently, it will be split into two parts. A barn will need to be relocated elsewhere on the farm.
- Market value of the land taken: The owner would be compensated for the 3 hectares (500 m x 60 m) based on highest and best use, reflecting the most appropriate and valuable use of the land under current conditions.
- Disturbance costs: This may include all costs associated with relocating or reconstructing the impacted barn and related equipment, as well as legal and appraisal fees, and the time and effort required to relocate and re‑establish operations.
- Impact on the remaining land: Compensation may also reflect the effect on the remaining 47 hectares, such as irregular field shapes, reduced farming efficiency, loss of access, increased travel time for equipment, or drainage and soil issues that affect yields.
- Business losses: This may include the long‑term loss of income from the acquired acreage, calculated on a 100-year period to reflect ongoing forage production losses on the affected area, as well as lost income during the transition period, reduced herd productivity resulting from relocation‑related stress, and the costs associated with relocating related farm infrastructure, such as fencing, animal handling areas and manure management facilities.
Practical solutions: In some cases, Alto may work with the owner to improve the productivity of the remaining land. This could include drainage upgrades, field reconfiguration for modern equipment, improved access, irrigation improvements, or precision agriculture and soil enhancements.
Alto’s goal is to help ensure that compensation considers all financial impacts over time and that the owner is able to continue their operation successfully.
You operate an 80‑hectare crop farm, consisting of several adjacent lots, and growing corn and soybeans. Alto needs to acquire 4 hectares along a property line, leaving 76 hectares remaining. In addition, a 2‑hectare area would be temporarily required for project‑related storage and construction needs.
- Market value of the land taken: The owner would be compensated for the 4 hectares based on its highest and best use, reflecting the most appropriate and valuable use of the land under current conditions.
- Market value of the land required by the temporary area: The owner would be compensated for the temporary use of the 2 hectares based on its highest and best use, with compensation calculated from the land’s market value and adjusted at a rate reflecting the duration of the temporary use.
- Impact on the remaining land: Compensation may also reflect the effect on the remaining 76 hectares, such as irregular field shapes, reduced farming efficiency, or drainage and soil issues that affect yields.
- Business losses: This may include the long‑term loss of income from the acquired acreage, calculated on a 100-year period to reflect ongoing crop losses on the affected area, as well as reduced productivity during the adjustment period, and temporary disruption during construction.
- Business losses related to the temporary area: This may include loss of income resulting from the temporary use of the land, including crop losses, with compensation adjusted to reflect the duration and extent of the project’s requirements.
- Disturbance costs: This could include the cost of reconfiguring fields, modifying drainage or irrigation systems, and obtaining professional advice from agronomists, engineers, or legal advisors.
- Special difficulties: Additional consideration may be appropriate if the acquired land includes the most productive fields, if irrigation systems are disrupted, or if the remaining land becomes harder to farm efficiently.
- Practical solutions: In some cases, Alto may work with the owner to improve the productivity of the remaining land. This could include drainage upgrades, field reconfiguration for modern equipment, improved access, irrigation improvements, or precision agriculture and soil enhancements.
These measures can help maintain, or in some cases improve, productivity and may be considered alongside financial compensation as part of a fair and practical overall outcome.