By Alice McFarlane

Tax relief for prairie livestock producers impacted by extreme weather

Aug 30, 2022 | 11:15 AM

MELFORT, Sask. – Livestock producers who have been impacted by severe weather have been forced to make some tough decisions about reducing the size of their herd.

The federal government has released an initial list of designated regions in Saskatchewan, Alberta, and Manitoba where producers are eligible for the Livestock Tax Deferral.

The provision allows livestock producers who are forced to sell a significant amount of their breeding herd due to drought or flooding to defer a portion of their income from sales until the following tax year. To defer income the breeding herd must have been reduced by at least 15 per cent.

The income may be at least partially offset by the cost of reacquiring breeding animals, reducing the potential tax burden associated with the original sale.

Agriculture and Agri-Food Minister Marie-Claude Bibeau said producers continue to show remarkable resilience as they face challenges and uncertainty due to extreme weather conditions.

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“Designation of the Livestock Tax Deferral provision provides farmers with the resources needed to make informed decisions and focus on rebuilding their herd and their operations,” Bibeau said.

The designated areas are in eastern Alberta, western Saskatchewan, and southern Manitoba.

Eligible regions were selected after consultation with industry and the provinces.
It is based on weather, climate, and production data. The criteria for identifying regions for Livestock Tax Deferral includes forage shortfalls of 50 per cent or more caused by drought or excess moisture.

Bibeau said the government will continue to monitor conditions across the country to determine whether other regions will be added throughout the year.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW