Final List of Designated Regions for 2016 under the Livestock Tax Deferral Provision
The final list of designated regions where livestock tax deferral has been authorized
for 2016 due to drought conditions in British Columbia, Alberta, Ontario, Quebec
and Nova Scotia is now available.
The livestock tax deferral provision allows producers in designated drought regions
who are facing feed shortages, to defer a portion of their sale proceeds of breeding
livestock to the next year. The cost of replacing the animals in the next year offsets
the deferred income, thereby reducing the tax burden associated with the original
sale. Eligible producers can request the tax deferral when filing their 2016 income
tax returns, or if they have already filed, submit an adjustment request directly
to the Canada Revenue Agency.
For 2017, federal officials are working closely with their provincial counterparts
and emergency management personnel to understand the impacts of the current wild
fires in British Columbia on agricultural operations. Agriculture and Agri-Food
Canada recognizes the pressure B.C. livestock producers are under and will work
with them and the provincial government to explore all options for assistance, including
the potential for livestock tax deferral.
- Low moisture levels resulted in significant forage shortages for livestock producers
in British Columbia, Alberta, Ontario, Quebec and Nova Scotia. 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 Growing Forward 2 Business Risk Management programs, which include
AgriInsurance, AgriStability and AgriInvest.