Ottawa, Ontario – Agriculture and Agri-Food Canada
Canadian farmers are directly impacted by climate change and its effects can be detrimental to sustaining operations. To provide assurance for producers as they make difficult herd management decisions, today the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, announced an initial list of designated regions in Alberta, Saskatchewan and Manitoba where Livestock Tax Deferral has been authorized for 2022 due to extreme weather conditions.
The Livestock Tax Deferral provision allows livestock producers who are forced to sell a significant amount of their breeding herd due to drought or flooding 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, thereby reducing the potential tax burden associated with the original sale.
Eligible regions have been identified based on weather, climate and production data, in consultation with industry and provinces. The criteria for identifying regions for Livestock Tax Deferral includes forage shortfalls of 50% or more caused by drought or excess moisture. The Government of Canada will continue to monitor conditions across the country to determine whether the addition of other regions throughout the year are required.
In addition to the Livestock Tax Deferral provision, producers have access to a comprehensive suite of Business Risk Management (BRM) programs to help them manage significant risks that threaten the viability of their farm and are beyond their capacity to manage. BRM programs are often the first line of support for producers facing disasters and farmers are encouraged to make use of these programs to protect their farming operations.
To help farm families succeed in a changing climate, the Government of Canada will continue to support farmers with the tools they need to get through the challenges of today, while working to build a sustainable future for the agriculture sector in Canada.
Source : Canada.ca