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APAS calling for livestock tax deferral

APAS calling for livestock tax deferral

Farmers need the assurance, the organization says

By Diego Flammini
Staff Writer
Farms.com

A Saskatchewan farm organization is asking the federal government to trigger a program to help livestock producers.

The Agricultural Producers Association of Saskatchewan wants Ottawa to enact a Livestock Tax Deferral Provision for 2022.

The provision “allows farmers who sell part of their breeding herd due to drought or flooding in prescribed drought or flood regions to defer a portion of sale proceeds to the following year,” Agriculture and Agri-Food Canada’s website says.

To defer income, the breeding herd must have been reduced by at least 15 per cent.

If a herd has been reduced by at least 15 per cent but less than 30 per cent, 30 per cent of income from net sales can be deferred.

If a herd has been reduced by more than 30 per cent, 90 per cent of income from net sales can be deferred.

Large portions of Saskatchewan are abnormally dry or experiencing some type of drought, AAFC’s drought monitor map says.

Communities like Swift Current and Rosetown have extreme drought conditions, which AAFC classifies as happening once every 20 years.

“Many areas of western Saskatchewan are still dealing with unprecedented drought, which is leading to herds of cattle being sold,” APAS Vice-President Scott Owens said in a June 6 statement. “If they haven’t already, many producers are running out of feed, and the pastures have not recovered from a lack of moisture last year and during the winter.”

Ottawa needs to invoke the provision to show farmers they are supported during this challenging time, Owens added.

The federal government has invoked the provision every year since 2017.

Farms.com has contacted Minister Bibeau’s office for comment.


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