The breeding herd must be reduced by at least 15 per cent to defer income
By Diego Flammini
Staff Writer
Farms.com
The federal government is providing flexibility to livestock producers affected by drought or flooding.
Ottawa is implementing the Livestock Tax Deferral Provision for some regions, Agriculture and Agri-Food Canada announced on Monday.
Under the program, producers in regions affected by extreme weather can defer a portion of their 2019 sale proceeds from breeding livestock until 2020 to help replenish the herd. The cost of replacement animals offsets the deferred income to reduce the tax implications.
"Canadian producers have had to face numerous challenges due to extreme weather conditions,” Marie-Claude Bibeau, the federal ag minister, said in a statement. “It is a priority for our government to quickly determine how the livestock tax deferral will be authorized to ensure that our producers have the support necessary to make informed herd management decisions and to help them keep their businesses strong.”
Cattle organizations are pleased with the government’s decision.
Implementing the livestock deferral program now gives farmers the flexibility they need to move forward, said Brady Stadnicki, manager of policy and programs with the Canadian Cattlemen’s Association.
“We’re happy to see a quick roll out of the deferral for the designated regions,” he told Farms.com. “The faster it gets released by the government, the more time it gives producers to make the right decisions for their herds.”
So far, farmers in parts of Alberta, British Columbia, Manitoba, Quebec and Saskatchewan can qualify for the program.
More locations could be added, Stadnicki said.
“We’ll be following up with our provincial members to get their analysis on if all the right spots were included, and, if there’s anything they feel is missing, we’ll communicate that with the federal government as they make adjustments” to coverage areas, he said.