Tax relief is available for livestock producers affected by drought last year, and more of them are now eligible.
The federal agriculture department released a list Feb. 2 of regions that will be eligible for tax deferrals as a result of last year’s dry conditions.
The new list expanded on a preliminary list of drought-affected regions released in July.
The new area comprises a large portion of south and central British Columbia, all but the northeast corner of Alberta, much of southwestern Saskatchewan and a portion of central Manitoba.
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The tax deferral allows producers to defer some 2015 sale proceeds received if they sold breeding livestock and instead claim it in the 2016 tax year.
“The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale,” said the government news release.
Sixty percent of the Prairies received below normal precipitation last year between April 1 and July 21. According to federal statistics, there were 27,000 farms in that region and more than 5.8 million cattle.
Drought conditions caused forage shortages, and some producers sold all or part of their breeding herds as a result.
“Extreme weather created difficulties for Western Canada’s livestock industry last summer,” federal agriculture minister Lawrence MacAulay said in the news release.
“Tax deferrals can help producers reduce their losses and focus on rebuilding their herds for the coming year.”
For more information, visit www.bit.ly/1CZTy2B.
