List of Designated Regions for 2018 under the Livestock Tax Deferral Provision
September 14, 2018 – Ottawa, Ontario - Agriculture and Agri-Food Canada
Extreme weather conditions have caused feed shortfalls in several provinces, which
has led to designated regions in British Columbia, Alberta, Saskatchewan, Manitoba,
and Quebec being eligible for livestock tax deferral provision.
Our Government today released an initial list of these designated regions where
livestock tax deferral has been authorized for 2018 due to drought or excess moisture
The livestock tax deferral provisions allow livestock producers in prescribed drought,
flood or excess moisture regions to defer a portion of their 2018 sale proceeds
of breeding livestock until 2019 to help replenish the herd. The cost of replacing
the animals in 2019 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 in those regions can request the tax deferral
when filing their 2018 income tax returns.
"This year's growing conditions across several provinces have brought many challenges
to Canadian livestock producers. 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." - Lawrence MacAulay, Minister of Agriculture
Low moisture levels resulted in significant forage shortages for livestock producers
in British Columbia, Alberta, Saskatchewan, Manitoba and Quebec in 2018. 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.
Livestock Tax Deferral Provision - Designated Areas Eligible for 2018