Ottawa has added 14 Saskatchewan rural municipalities to the list of jurisdictions where drought-affected cattle producers may qualify for tax deferrals.
In December, the federal government announced that producers in 20 southwest RMs could get tax deferrals on animals they are forced to sell because of dry conditions.
The additional RMs are to the east and north of the area initially designated and include Lake Alma, Surprise Valley, Happy Valley, Hart Butte, Poplar Valley, Laurier, The Gap, Bengough, Willow Bunch, Old Post, Waverley, Whiska Creek, Miry Creek and Clinworth.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Under the program, producers qualify for a one-year federal tax deferral on 2006 income from sales due to drought. They have must sold at least 15 percent of their breeding herds to qualify for a 30-percent deferral. The deferral grows to 90 percent if 30 percent or more of a herd is sold.
Producers request the deferral when filing their income tax returns.
Meanwhile, producers in the southwest continue to meet with government officials to press for more direct financial assistance. They say they should receive payments similar to those received by farmers who were flooded and unable to seed last spring.
