Feds release livestock tax deferral list

Feds release livestock tax deferral list
Jan 31, 2019

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Producers who faced inclement weather and forage shortages in 2018 can get tax relief

 
Staff Writer
Farms.com
 
Farmers in several provinces affected by 2018 drought conditions can receive a livestock tax deferral.
 
Yesterday, the Canadian government issued its final list of regions where producers are eligible for livestock tax deferrals for last year, an Agriculture and Agri-Food Canada (AAFC) release said. Regions of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick made the list.
 
The livestock deferral provision enables producers facing drought or excessive moisture to defer a component of their 2018 breeding livestock sale proceeds until the next year. Costs to replace animals in 2019 will help to counterbalance the deferred income, diminishing the tax affiliated with the 2018 sales. 
 
To defer income, a farmer’s breeding herd must be reduced by at least 15 per cent, said an AAFC website description of the tax deferral provision. If a breeding herd has “been reduced by at least 15 per cent, but less than 30 per cent, 30 per cent of income from net sales can be deferred. Where the breeding herd has been reduced by 30 per cent more, 90 per cent of income from net sales can be deferred,” the website said.
 
Last year’s low moisture levels in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and New Brunswick contributed to forage shortages.
 
“This tax deferral will help farmers manage the impacts of drought and focus on rebuilding their herds and businesses," Lawrence MacAulay, minister of agriculture and agri-food, said in the release.
 
The government revealed its original list of “prescribed regions in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec eligible for livestock tax deferral” on Sept. 14, the release said. A second list, issued on Oct. 31, included qualified areas. Current monitoring of drought conditions, however, has “indicated the need to expand the list of designated regions for 2018, with new regions identified for Alberta, Saskatchewan, Manitoba, and Ontario.”
 
While the Beef Farmers of Ontario (BFO) appreciates the livestock tax deferral provision, the industry still needs an improved hay and forage production insurance program in Ontario, LeaAnne Wuermli, BFO's manager of communications and marketing, told Farms.com today.
 
“An enhanced hay and forage insurance program similar to what is offered under crop insurance plans for grains and oilseed producers would help minimize the impact of future drought and excess moisture events for livestock operations,” she said. “BFO has long advocated for the development of a yield-based forage insurance program as a way to reduce ad-hoc programs offered in the aftermath of weather-related disasters.” 
 
Producers residing in the authorized areas can request a tax deferral when filing their 2018 income tax returns. 
 
To see if you are in an affected area, click here
 
PrairieArtProject/iStock/Getty Images Plus photo
 

Comments (1)

Rm of Cornwallis didn’t make it but every other rm around Brandon Mb did. I guess we majically got more rain?
Robert |Feb 8 2019 10:09AM

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