Tax Relief For Ranchers Affected By Bovine Tuberculosis

Nov 07, 2017

The Government has announced further tax relief for taxpayers who receive compensation under the Health of Animals Act due to the 2016 and 2017 bovine tuberculosis (TB) outbreak in Alberta and Saskatchewan that forced the destruction of livestock.

Current income tax rules provide a tax deferral that allows a taxpayer to defer paying tax on the amount received in a tax year as compensation for the forced destruction of livestock from the current tax year to the following tax year.

The objective of the deferral is to allow farmers who would otherwise realize a large income inclusion in the year they receive compensation to have the option to defer the income inclusion to the following year, when that income inclusion may be partially, or fully, offset by the cost of acquiring new livestock.

The Government recognizes that taxpayers affected by bovine TB may be unable to fully replenish their herds within a year and that replacement purchases are expected to extend over several years.

Accordingly, the Government intends to extend the existing tax deferral to better correspond to the repopulation plans and replacement purchases schedule, as determined in consultation with the industry.

As a result, taxpayers who received amounts as compensation in 2016 or 2017 under the Health of Animals Act as a consequence of the forced destruction of their livestock because of the bovine TB outbreak will effectively have the option of including those amounts in income for tax purposes, as follows:

2016 and 2017 tax year: no amount of compensation received will be included in income
2018 tax year: 83 per cent of compensation received will be included in income
2019 tax year: 11 per cent of compensation received will be included in income; and
2020 tax year: six per cent of compensation received will be included in income

Livestock Tax Deferral Provisions – Designated Areas Eligible for 2017

The Government today released its list of designated regions in British Columbia, Alberta, Saskatchewan and Quebec in which the livestock tax deferral has been authorized for 2017 due to drought, flood or excess moisture.

The livestock tax deferral provisions allow livestock producers in prescribed drought, flood or excess moisture regions to defer a portion of their 2017 sale proceeds of breeding livestock until 2018 to help replenish the herd. The cost of replacing the animals in 2018 will offset the deferred income, thereby reducing the tax burden associated with the original sale.

Eligibility for the tax deferral is limited to those producers located inside the designated prescribed areas. Producers can request the tax deferral when filing their 2017 income tax returns.

Source : Agriculture and Agri-Food Canada

Video: You Be The Judge: Evaluating 8 Breeding Rams!

It's time for some honest feedback here at Ewetopia Farms! Today, we’re showing you all eight rams we used for breeding this year. Instead of just presenting them, we thought it would be fun to create a “Ram Report Card” — where we point out both their strengths and areas for improvement.

But here’s the twist: you be the judge! In the comments, let us know what you like about each ram and what you think could be improved. No ram is ever perfect, but every one of them brings something valuable to the flock. By sharing perspectives, we all learn more about what to look for in good breeding stock.

At Ewetopia Farms, we raise registered Suffolk and Polled Dorset sheep, focusing on high-quality genetics, structure, and friendly temperaments. Evaluating breeding rams is part of the bigger picture of building stronger flocks — and we’re excited to share the process with you.

If you enjoy seeing how we evaluate our animals, follow along by subscribing to our channel. We share daily insights into the joys and challenges of sheep farming here in Canada.