Livestock Tax Deferral Program

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Program Information


Agriculture and Agri-Food Canada

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Owners of breeding livestock in designated areas

Program Details
  The Livestock Tax Deferral provision allows farmers who sell part of their breeding herd due to drought or flooding in prescribed drought or flood regions to defer a portion of sale proceeds to the following year. When prescribed regions are identified, the list is announced publicly and posted on the Canada Revenue website.

To defer income, the breeding herd must have been reduced by at least 15%.

  • Where the breeding herd has been reduced by at least 15%, but less than 30%, 30% of income from net sales can be deferred.
  • Where the breeding herd has been reduced by 30% or more, 90% of income from net sales can be deferred.
  • In a year in which a region has been prescribed, income from livestock sales are deferred to the next tax year when the income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the potential tax burden. In the case of consecutive years of drought or excess moisture and flood conditions, producers may defer sales income to the first year in which the region is no longer prescribed.
2017 Designated Drought Areas in Alberta
  • Cardston County
  • City of Calgary
  • Clearwater County
  • Cypress County
  • Forty Mile County No. 8
  • Kneehill County
  • Lacombe County
  • Lethbridge County
  • Mountain View County
  • Municipal District of Bighorn No. 8
  • Municipal District of Foothills No. 31
  • Municipal District of Pincher Creek No. 9
  • Municipal District of Ranchland No. 66
  • Municipal District of Taber
  • Municipal District of Willow Creek No. 26
  • Newell County
  • Paintearth County No. 18
  • Red Deer County
  • Rocky View County
  • Special Area No. 2
  • Special Area No. 3
  • Special Area No. 4
  • Starland County
  • Stettler County No. 6
  • Vulcan County
  • Warner County No. 5
  • Wheatland County
For more information, contact a local Canada Revenue Agency office.
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Last Reviewed/Revised on June 1, 2018.