| ||Due to last year’s overly dry prairie conditions, the federal government has announced a list of additional regions where livestock producers will be eligible for tax deferrals. A preliminary list of drought-affected regions was released last July; but after further discussions with the affected provinces, additional designations have now been added to the list.
Livestock tax deferral allows producers in prescribed drought regions who are facing feed shortages, to defer a portion of their 2015 sale proceeds of breeding livestock until the following year. The cost of replacing the animals in the next year offsets the deferred income thereby reducing the tax burden associated with the original sale.
Eligible producers can request the tax deferral when filing their 2015 income tax return. From April 1 to July 21, 60 per cent of the prairie agricultural landscape (an area representing over 27,000 farms and more than 5.8 million head of cattle), received below normal precipitation which affected the production of forage. Forage shortages forced some producers to sell off all of part of their breeding herd.
The full list of designated regions can be found on Agriculture Canada’s website.
Agriculture and Agri-Food Canada