Grassland set-asides (GLSA) in the Fraser River delta are fields that are taken out of crop production and seeded with a mixture of grasses and legumes for 1–4 yr. During this time, the farmer is compensated with a cost-share payment to recover a portion of the financial returns that could have been earned from cash crops. The objectives of this study were to (i) evaluate the effects of GLSA on soil properties during the initial two seasons of enrollment, (ii) determine how GLSA effects differ between fields that were considered productive and unproductive, and (iii) identify soil baseline indicators and preliminary soil thresholds for predicting GLSA vegetation responses. Out of eight fields entering the program, two were considered to be unproductive and exchangeable sodium had the strongest negative relationship to GLSA aboveground biomass (r = -0.61, P = 0.0002). During the second season of GLSA establishment, the mean weight diameter of water-stable soil aggregates was consistently higher in productive GLSAs than paired annual crop rotation (ACR) fields, being 21% higher in April, 14% in July, and 19% in September after crop harvest. After two seasons of GLSA enrollment, both aeration porosity and bulk density were improved by GLSA relative to ACR fields with aeration porosity being 24% greater and bulk density 7% lower in GLSA. The results suggest that GLSA rotations in productive agricultural fields within the Fraser River delta provide an alternative to continued ACR that can improve soil structure and reduce compaction after only two seasons of establishment.