OTTAWA, Ontario – The final list of designated regions qualified for 2017 livestock tax deferral due to drought, flood or excess moisture conditions has been released by the Canadian government. The initial list of regions in British Columbia, Alberta, Saskatchewan and Quebec, for livestock tax deferral purposes was announced on Nov. 6, 2017. Ongoing analysis identified more regions in British Columbia and Saskatchewan that experienced forage shortfalls in 2017.
"Extreme weather and natural disasters created significant challenges for many Canadian livestock producers in 2017,” said Lawrence MacAulay, Minister of Agriculture and Agri-Food. “This tax deferral will help producers manage the impacts of the adverse weather, while focusing on rebuilding their herds in the coming year. This will help farmers keep their businesses strong, while growing the economy and strengthening the middle class."
The deferral provisions allow producers in the designated regions to defer a portion of their 2017 sale proceeds from breeding livestock until 2018 to aid in replenishment of herds. The cost of replacing the animals in 2018 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 designated prescribed areas. Producers can request the tax deferral when filing their 2017 income tax returns.