In October 2025, BFO submitted a request to Agriculture and Agri-Food Canada (AAFC) to expand the eligible drought zones eligible for the Livestock Tax Deferral (LTD) provision to better reflect drought conditions experienced by Ontario producers in 2025. We are pleased to share that AAFC has now updated the 2025 list of prescribed regions eligible for the LTD provision, effective for the 2025 taxation year.
What is the Livestock Tax Deferral Provision?
The Livestock Tax Deferral provision is a federal tax measure that allows farmers in prescribed drought, excess moisture or flood-affected regions to defer a portion of their income from the sale of breeding livestock to the following tax year. This can provide meaningful tax relief for producers forced to liquidate breeding stock due to extreme weather conditions.
Key points of the program:
The provision applies when a breeding herd has been reduced due to adverse weather conditions such as drought, excess moisture or flooding.
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