Livestock producers in Western Canada and Quebec experiencing significant forage shortages
Preliminary analysis indicates that livestock producers in Western Canada and Quebec are experiencing significant forage shortages due to drought conditions, supporting an early designation under the livestock tax deferral provision.
Ongoing analysis and consultations will continue to determine if additional regions will be added to the designated list.
The livestock tax deferral provision allows livestock producers in prescribed drought, flood or excess moisture regions to defer a portion of their 2019 sale proceeds of breeding livestock until 2020 to help replenish the herd.
The cost of replacing the animals in 2020 will offset the deferred income, thereby reducing the tax burden associated with the original sale.
The criteria for identifying regions for livestock tax deferral is forage shortfalls of 50 percent or more caused by drought or excess moisture.
Eligible regions are identified based on weather, climate, and production data, in consultation with industry and provinces.
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 2019 income tax returns. ■