In order to be eligible for a deferral, the herd must have seen at least a 15% decrease. In cases of a 15% decline, 30% of sales can be tax-free. If the herd suffered a loss of more than 30%, then 90% of income from net sales can be tax-free. Livestock producers can request the deferral when filing their 2014 income taxes.
"Livestock producers in the West have been challenged with extreme weather conditions this year,” said Agriculture Minister Gerry Ritz. “The tax relief offered by this program will provide producers with an additional tool to managing their forage shortfalls, allowing them to redirect money towards restocking next year's breeding herd.”
The tax deferrals are being offered through Canada’s Growing Forward 2 program. Scheduled to end in 2018, it’s a $3 billion investment into agricultural programs and services by federal, provincial, and territorial governments.
Canada’s livestock sector contributes about $13 billion to the country’s Gross Domestic Product and employs more than 220,000 people.