Live­stock pro­duc­ers re­ceive tax re­lief for 2019

Prairie Post (East Edition) - - PRAIRIE OPINION - Con­trib­uted

The Govern­ment of Canada July 22 re­leased an ini­tial list of des­ig­nated re­gions in Bri­tish Columbia, Al­berta, Saskatchew­an, Manitoba and Que­bec where live­stock tax de­fer­ral has been au­tho­rized for 2019 due to ex­treme weather con­di­tions.

Pre­lim­i­nary anal­y­sis in­di­cates that live­stock pro­duc­ers in West­ern Canada and Que­bec are ex­pe­ri­enc­ing sig­nif­i­cant for­age short­ages due to drought con­di­tions, sup­port­ing an early des­ig­na­tion un­der the live­stock tax de­fer­ral pro­vi­sion.

On­go­ing anal­y­sis and con­sul­ta­tions will con­tinue to de­ter­mine if ad­di­tional re­gions will be added to the des­ig­nated list.

The live­stock tax de­fer­ral pro­vi­sion al­lows live­stock pro­duc­ers in pre­scribed drought, flood or ex­cess mois­ture re­gions to de­fer a por­tion of their 2019 sale pro­ceeds of breed­ing live­stock un­til 2020 to help re­plen­ish the herd.

The cost of re­plac­ing the an­i­mals in 2020 will off­set the de­ferred in­come, thereby re­duc­ing the tax bur­den as­so­ci­ated with the orig­i­nal sale.

The cri­te­ria for iden­ti­fy­ing re­gions for live­stock tax de­fer­ral is for­age short­falls of 50 per­cent or more caused by drought or ex­cess mois­ture. El­i­gi­ble re­gions are iden­ti­fied based on weather, cli­mate, and pro­duc­tion data, in con­sul­ta­tion with in­dus­try and prov­inces.

El­i­gi­bil­ity for the tax de­fer­ral is limited to those pro­duc­ers lo­cated in­side the des­ig­nated pre­scribed ar­eas.

Pro­duc­ers in those re­gions can re­quest the tax de­fer­ral when filing their 2019 in­come tax re­turns.

“Cana­dian pro­duc­ers have had to face nu­mer­ous chal­lenges due to ex­treme weather con­di­tions. It is a pri­or­ity for our govern­ment to quickly de­ter­mine how the live­stock tax de­fer­ral will be au­tho­rized to en­sure that our pro­duc­ers have the sup­port nec­es­sary to make in­formed herd man­age­ment de­ci­sions and to help them keep their busi­nesses strong,” ex­plained The Hon­ourable Marie-Claude Bibeau, Min­is­ter of Agri­cul­ture and Agri-Food

Quick facts

•Low mois­ture lev­els re­sulted in sig­nif­i­cant for­age short­ages for live­stock pro­duc­ers in Bri­tish Columbia, Al­berta, Saskatchew­an, Manitoba and Que­bec in 2019. One op­tion for pro­duc­ers is to re­duce their breed­ing herd in or­der to man­age feed sup­plies.

•In ad­di­tion to the live­stock tax de­fer­ral pro­vi­sion, pro­duc­ers have ac­cess to as­sis­tance through ex­ist­ing Cana­dian Agricultur­al Part­ner­ship Busi­ness Risk Man­age­ment pro­grams, which in­clude AgriIn­surance, AgriSta­bil­ity and AgriIn­vest.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.