OTTAWA, Ontario – The government of Canada released an initial list of regions in British Columbia, Alberta, Saskatchewan, Manitoba and Quebec where livestock tax deferral has been authorized for 2018.
Extreme weather conditions, such as drought in some regions, caused a feed shortfall in several provinces. Some producers may have reduced their breeding herd in order to manage feed supplies. Rain shortfalls and above-average temperatures led to persisting drought across much of western Canada during August. Wildfires in British Columbia exceeded the area burned in 2017, according to the government, and many regions of the southern prairies had record-breaking temperatures and little to no precipation.
Under the livestock tax deferral provision, producers may defer a portion of their 2018 sale proceeds of breeding livestock until 2019 to help replenish their herds. “The cost of replacing the animals in 2019 will offset the deferred income, thereby reducing the tax burden associated with the original sale,” the government said.
“This year’s growing conditions across several provinces have brought many challenges to Canadian livestock producers,” said Lawrence MacAulay, Minister of Agriculture and Agri-Food. “The government has prioritized the approval of the Livestock Tax deferral to give farmers more certainty about their financial situation and help them keep their businesses strong, while growing the economy and strengthening the middle class.”