Final List of Designated Regions for 2017 under the Livestock Tax Deferral Provision
February 6, 2018 – Ottawa, Ontario – Agriculture and Agri-Food Canada
The Government of Canada today released the final list of designated regions where
livestock tax deferral has been authorized for 2017 due to drought, flood or excess
On November 6, 2017, the Government of Canada announced the initial list of designated
regions in British Columbia, Alberta, Saskatchewan and Quebec, for livestock tax
Ongoing analysis has identified additional regions in British Columbia and Saskatchewan
that are experiencing forage shortfalls in 2017.
The livestock tax deferral provisions allow livestock producers in prescribed drought,
flood or excess moisture regions to defer a portion of their 2017 sale proceeds
of breeding livestock until 2018 to help replenish the herd. 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.
"Extreme weather and natural disasters created significant challenges for many Canadian
livestock producers in 2017. This tax deferral will help producers manage the impacts
of the adverse weather, while focussing 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." - Lawrence MacAulay, Minister of Agriculture
- Low moisture levels resulted in significant forage shortages for livestock producers
in British Columbia, Alberta, Saskatchewan and Quebec in 2017. 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.