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Livestock producers to receive tax break

Livestock producers to receive tax break

The feds released a list of additional regions that are eligible for a tax deferral this year

By Kate Ayers
Staff Writer
Farms.com

The federal government announced more regions that are now eligible for the livestock tax deferral provision for 2018.

On Sept. 14, the Government of Canada posted an initial list of regions in British Columbia, Alberta, Saskatchewan, Manitoba and Quebec in which producers are eligible for tax relief.

“When the federal government came out with its first list of areas eligible for the tax deferral, that was very much welcomed,” Brian Lemon, general manager of Manitoba Beef Producers, said to Farms.com yesterday. 

“We understood that … there would be (another) review process and there would be an opportunity to add further rural municipalities (RMs).”

On Wednesday, the feds announced an updated list that includes more regions in Alberta, Saskatchewan, Manitoba, Quebec and New Brunswick where it has authorized the livestock tax deferral, a recent government release said.

A full list of the prescribed regions in each province for 2018 can be found here.

“We are certainly happy to see that this tool will be available for producers in these other 17 RMs,” Lemon said.

The staff at the Saskatchewan Stock Growers Association (SSGA) is reviewing the expanded list to see if any additional RMs should be added, Chad MacPherson, SSGA’s general manager, said to Farms.com yesterday.

The deferral provision allows producers in the listed regions, which experienced drought or excessive moisture, to postpone claiming some of their 2018 sale earnings from breeding livestock until next year to help replenish the herd, the release said.

“Producers who have reduced their herds by 15 to 30 per cent are able to defer 30 per cent of the income from (their) net sales,” MacPherson said.

If producers reduced their herds “by more than 30 per cent, (they) are able to defer 90 per cent of the income from (their) net sales. The provision helps producers manage their tax burden from increased net sales and allows them to restock breeding animals once moisture conditions have improved.”

Producers in the prescribed regions can ask for the livestock tax deferral while filing their 2018 income tax returns.

“Moisture conditions for the past two growing seasons have been well below normal across most of Saskatchewan,” Macpherson said.

“Hay crops this year were below average, pasture conditions have been negatively impacted and water shortage is an issue in some areas.  As a result, producers have (had to) make hard decisions about reducing herd sizes, marketing animals earlier than planned, relocating animals to other parts of the province and purchasing feed at inflated prices.”

However, producers are optimistic with the recent rain.

Rike_/Getty Images photo

 

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