Livestock producers receive tax relief for 2018
The Government of Canada Oct. 30 released a list of additional regions in Alberta, Saskatchewan, Manitoba, Quebec and New Brunswick where livestock tax deferral has been authorized for 2018 due to drought.
On Sept. 14, the Government announced the initial list of prescribed regions in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec for livestock tax deferral purposes.
The livestock tax deferral provision allows producers in prescribed drought or excess moisture regions to defer a portion of their 2018 sale proceeds of breeding livestock until 2019 to help replenish the herd.
The cost of replacing the animals in 2019 will offset the deferred income, thereby reducing the tax burden associated with the original sale.
Eligibility for the tax deferral is limited to those producers located inside the prescribed areas.
Producers in those regions can request the tax deferral when filing their 2018 income tax returns.
“This past year, extreme weather conditions have caused feed shortfalls for Canada’s livestock producers in several provinces.
The Livestock Tax Deferral Provision will help give producers the resources needed to help rebuild their herds and get back to business," said Lawrence MacAulay, Minister of Agriculture and Agri-Food
• Low moisture levels resulted in significant forage shortages for livestock producers in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and New Brunswick in 2018. 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.