Additional Regions Qualify for Livestock Tax Deferral

Feb 04, 2026

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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Video: How We Pick Sheep For Use As Breeding Stock

In this episode of our sheep farming vlog at Ewetopia Farms, we’re diving deeper into one of the most important parts of raising purebred sheep — selecting our breeding stock. ?? This episode is a direct follow-up to our popular video “You Be The Judge,” where we invited viewers to help evaluate our rams. We read through your comments, shared your insights, and now we’re responding! Arnie and I go over what we agreed with, where our opinions differed, and what we look for when choosing both rams and ewes to carry on our genetics. Breeding decisions at Ewetopia Farms aren’t just about looks — they’re about structure, performance, temperament, and the future of the flock. Whether you’re building your own breeding program or just curious how we make these decisions, today’s discussion offers a rare look inside the thought process behind improving a flock year after year.