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Western Livestock Producers Receive Tax Relief for 2015
New Regions Designated for 2015 under the Livestock Tax Deferral Provision
February 2, 2016 – Ottawa, Ontario – Agriculture and Agri-Food Canada
Minister of Agriculture and Agri-Food Lawrence MacAulay today released a list of additional designated regions where tax deferrals have been authorized for 2015 as a result of dry conditions in Western provinces.
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 next 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 returns.
- From April 1 to July 21, 60 per cent of the Prairie agricultural landscape received below normal precipitation which affected the production of forage. This area represents 27,000 farms and more than 5.8 million cattle.
- Low moisture levels resulted in significant forage shortages for livestock producers across western Canada, forcing some to sell all or part of their breeding herd.
- A preliminary list of drought-affected regions in British Columbia, Alberta, Saskatchewan and Manitoba was released last July. Further to discussions with the impacted provinces, additional designations are being added to the list. In addition to the tax deferral, producers have access to assistance through existing Growing Forward 2 Business Risk Management programs, which include AgriInsurance, AgriStability and AgriInvest.
"Extreme weather created difficulties for Western Canada’s livestock industry last summer. Tax deferrals can help producers reduce their losses and focus on rebuilding their herds for the coming year."- Lawrence MacAulay, Minister of Agriculture and Agri-Food
- Livestock Tax Deferral Provisions – Designated Areas Eligible for 2015
- Growing Forward 2 – Business Risk Management Programs (Agriculture and Agri-Food Canada)
- Drought Watch (Agriculture and Agri-Food Canada)
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