Ottawa, Ontario – Agriculture and Agri-Food Canada
The effects of climate change are having a direct and severe impact on farmers and their ability to earn a stable income. To provide producers with more certainty heading into the summer months, today, the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, announced an early list of regions that are eligible for Livestock Tax Deferral in 2024.
The Livestock Tax Deferral provision allows livestock producers in certain areas who are forced to sell all or part of their breeding herd due to drought, flooding or excess moisture to defer a portion of their income from sales until the following tax year. The income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the tax burden associated with the original sale.
This year, the Government of Canada has streamlined the process to identify regions earlier in the growing season, and also instituted a buffer zone to adjacent regions to capture impacted producers on the edges of affected regions. Weather, climate and production data from across Canada will continue to be monitored throughout the remainder of the season and regions will be added to the list when they meet the criteria.
Livestock Tax Deferral serves as a crucial instrument for the government in mitigating the financial burden on farmers during natural disasters, such as drought or floods. The Government of Canada will continue working with industry partners to explore avenues to ensure farmers get support quicker and more efficiently in times of need.
Source : Canada.ca