Canadian Government Offers Tax Referral to Affected Counties
By Graham Dyer, Farms.com
Drought has made it a hard year for livestock farmers, who are trying to stay afloat. The Canadian government announced today that livestock farmers impacted by the drought in Ontario and Quebec will be able to take advantage of tax deferrals. The government is also allowing farmers to access assistance through various farm programs including - AgriInsurance, AgriStability, and AgriInvest. Producers can contact Agricorp and La Financière agricole du Québec.
"This summer's hot and dry weather has drastically reduced feed supplies for many Ontario and Quebec farmers, forcing them to make some tough herd management decisions," said Agriculture Minister Gerry Ritz. "With a tax deferral, producers will have some breathing room by being able to redirect money towards replenishing next year's breeding stock and get back to business.."
Who is eligible?
The tax deferral will allow eligible farmers to defer income tax on the sale of breeding livestock for one year. In order to be eligible, for the tax deferral a farmers breeding herd would have to be reduced by a minimum of 15% - in those cases 30% of income from net sales can be deferred. In other extreme cases where breeding herds have been reduced by 30% more, a net income of 90% can be deffered.
Livestock producers must contact their local Canada Revenue Agency Tax Services Office for more details on income tax provisions or visit the AAFC website at www.agr.gc.ca.
Tax Deferral Applicable Regions:
ONTARIO
Census Division Brant
Census Division Haldimand-Norfolk
Census Division Hamilton
Census Division Ottawa
District of Parry Sound
District Municipality of Muskoka
County of Bruce
County of Dufferin
County of Grey
County of Huron
County of Lanark
County of Oxford
County of Perth
County of Renfrew
County of Wellington
Regional Municipality of Halton
Regional Municipality of Niagara
Regional Municipality of Waterloo
United Counties of Prescott and Russell
QUEBEC
Regional County Municipality of Les Collines-de-l'Outaouais
Regional County Municipality Papineau
Regional County Municipality of Pontiac
Territory Equivalent Gatineau