2025 Livestock Tax Deferral Regions Announced

Program mean producers can defer a portion of income from the sale of breeding livestock to the following tax year

Agriculture and Agri-Food Canada (AAFC) has published the initial list of prescribed regions eligible for the 2025 Livestock Tax Deferral provision, a key support measure for Canadian livestock producers grappling with the impacts of extreme weather.

“As we continue to see the very real and challenging effects of climate change, Canada's new government is committed to supporting our livestock producers,” said the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food.

“By offering a tax deferral option to those in affected areas, we are helping folks manage uncertainty, make informed business decisions, and safeguard their livelihoods.”

To qualify, producers must have reduced their breeding herd by at least 15%. In cases of consecutive years of adverse conditions, income may be deferred to the first year in which the region is no longer prescribed.

Expanded Support and Monitoring
Buffer zones have been introduced to include producers outside the official boundaries who are experiencing similar conditions. AAFC will continue to monitor weather, climate, and production data across Canada, with additional regions to be added as they meet the eligibility criteria—specifically, forage shortfalls of 50% or more.

This announcement follows recent enhancements to the AgriStability program for 2025, which include an increased compensation rate from 80% to 90% and a raised maximum payment limit from $3 million to $6 million.

Click here to view the current list of prescribed regions for the 2025 Livestock Tax Deferral provision.

Photo Credit: AAFC