Minister of Agriculture and Agri-Food, Marie-Claude Bibeau, has announced an initial list of designated regions in Alberta, Saskatchewan and Manitoba where Livestock Tax Deferral has been authorized for 2022 due to extreme weather conditions.
“Canada’s producers continue to show remarkable resilience as they face challenges and uncertainty due to extreme weather conditions. 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,” said Bibeau.
The Livestock Tax Deferral 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. The income may be at least partially offset by the cost of reacquiring breeding animals, thereby reducing the potential tax burden associated with the original sale.
Eligible regions have been identified based on weather, climate and production data, in consultation with industry and provinces. The criteria for identifying regions for Livestock Tax Deferral includes forage shortfalls of 50 per cent or more caused by drought or excess moisture.
Under the Livestock Tax Deferral, to defer income, the breeding herd must have been reduced by at least 15%.
The Government of Canada will continue to monitor conditions across the country to determine whether the addition of other regions throughout the year are required.