2019 Livestock Tax Deferral areas - Agriculture Canada

By Dori Modney with files from Agriculture Canada

Initial Regions set for 2019 Livestock Tax Deferral Provision

Jul 23, 2019 | 2:36 PM

OTTAWA — Agriculture and Agri-Food Canada has released an initial list of where livestock tax deferral has been authorized for 2019 due to extreme weather conditions.

Preliminary analysis indicates livestock producers in the four Western provinces and an area of Quebec are dealing with significant forage shortages, brought on by drought conditions, and producers may need to reduce their breeding herd in order to manage feed supplies.

Additional regions may be added to the list, pending further consultations.

Livestock tax deferral allows producers in areas impacted by drought, flood or excess moisture 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 livestock tax deferral regions are set based on 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.

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Eligibility for the tax deferral is limited to those producers within the designated areas and allows producers in those regions to request the tax deferral when filing their 2019 income tax returns.

In addition to the Livestock Tax Deferral Provision, producers have access to assistance through existing Canadian Agricultural Partnership Business Risk Management programs, which include Agri-Insurance, Agri-Stability and Agri-Invest.