List of Designated Regions for 2019 under the Livestock Tax Deferral Provision
OTTAWA, July 22, 2019 /CNW/ - The Government of Canada today 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."
- The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food
- 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.
SOURCE Agriculture and Agri-Food Canada
For further information: Katie Hawkins, Director of Communications, Office of the Minister of Agriculture and Agri-Food, [email protected], Mobile: 613-290-3896; Media Relations, Agriculture and Agri-Food Canada, Ottawa, Ontario, 613-773-7972, 1-866-345-7972, [email protected]