Final Livestock Tax Deferral zones released for Alberta and British Columbia (Aug 11, 2017)

Final Livestock Tax Deferral zones released for Alberta and British Columbia

Producers can request the deferral on their 2016 tax forms

By Diego Flammini
Assistant Editor, North American Content

Livestock producers in Alberta and British Columbia now have a finalized list of Livestock Tax Deferral zones.

The provisions allow producers in areas impacted by drought and facing feed shortages to defer a portion of sale proceeds from breeding livestock to the next year.

“The program is important for producers in areas that have forage production shortfalls (drought or flooding are examples of causes for these shortfalls) and are forced to sell part of their breeding herd,” Brady Stadnicki, policy analyst with the Canadian Cattlemen’s Association, said in an email to

“The benefits are that proceeds from deferred sales (which is taxable income) can go towards the cost of reacquiring breeding stock the next year.”

Producers should note certain AAFC regulations regarding the tax deferral.

"To defer income, the breeding herd must have been reduced by at least 15 per cent,” AAFC says on its website. “30 per cent of income from net sales can be deferred if the breeding herd has been reduced by at least 15 per cent but less than 30 per cent.

“Where the herd has been reduced by 30 per cent or more, 90 per cent of income from net sales can be deferred.”

In British Columbia, designated areas include the Census Subdivisions of Kootenay A, Kitimat-Stikine A, B and D.

Officials are also working on provisions for 2017 to include areas affected by wildfires in British Columbia as part of the livestock tax deferral zones.

And in Alberta, the zones include Lethbridge County, Red Deer County and Wheatland County.

Provincial livestock groups encourage producers to use all the tools they have available to them.

“Alberta Beef Producers encourages producers who are in the drought designated areas defined by Agriculture and Agri-Food Canada to make use of the provisions available through the Livestock Tax Deferral,” Fred Hays, policy analyst with Alberta Beef Producers, said in an email to

“Producers can contact AFSC with any questions and are reminded to engage an accountant when considering herd inventory adjustments.”

Farmers can submit an adjustment to Canada Revenue Agency.

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