Ottawa, Ontario - Agriculture and Agri-Food Canada
The Government of Canada has announced a final list of designated regions where tax deferrals have been authorized for 2014 due to the impact of drought or excessive moisture conditions on forage production.
The tax deferral allows eligible producers in designated regions to defer income tax on the sale of their breeding livestock for one year in order to help replenish that stock in the following year. Proceeds from deferred sales are then included as part of the producer's income in the next tax year, when those proceeds may be at least partially offset by the cost of replacing their breeding animals.
Eligible producers can request the tax deferral when filing their 2014 income tax returns, or if they have already filed, submit an adjustment request directly to the Canada Revenue Agency.
Quick facts
- Extreme weather conditions in 2014, which included drought in British Columbia and Alberta, and excess moisture in Saskatchewan and Manitoba, resulted in significant forage shortages for livestock producers across western Canada. As a result, some producers are reducing their breeding herds.
- Drought or excessive moisture and flood regions are designated on the advice of the Minister of Agriculture and Agri-Food Canada to the Minister of Finance. An early designation for 2014 was announced on December 29, 2014.
- In addition to the tax deferral, producers have access to assistance through existing Growing Forward 2 Business Risk Management programs, which include AgriInsurance, AgriStability and AgriInvest.
Source: AAFC