The federal government has unveiled the first regions eligible for the 2025 Livestock Tax Deferral program.
The designated areas include parts of all three Prairie provinces as well as northern Ontario, with additional regions to be added as conditions evolve. Eligibility for new areas will be based on forage shortfalls of 50% or more caused by extreme weather.
Buffer zones have also been applied to capture farmers on the margins of designated areas who are experiencing similar weather-related challenges. Weather, climate, and production data will be monitored for the remainder of the season to ensure all affected regions are considered, said a federal release on Monday.
The Livestock Tax Deferral provision allows livestock producers in prescribed areas, who are forced to sell all or part of their breeding herd due to extreme weather to defer a portion of their income from sales until the following tax year. The income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the tax burden associated with the original sale. Producers qualify if their breeding herd has been reduced by at least 15%.