News 562 views last update:Feb 25, 2016

Canada: Livestock producers benefit from tax deferrals

More livestock producers in British Columbia, Alberta, Manitoba, Ontario and Quebec will have financial breathing room to help them cope with the effects of extremely dry growing conditions on forage yields.

Agriculture Minister Gerry Ritz announced that the list of designated areas eligible for tax deferrals has been expanded.
“Our Government understands the difficulties faced by livestock producers due to unforeseen weather and we are acting,” said Minister Ritz. “With this tax deferral, producers in another 34 drought-affected municipalities will be able to redirect money towards restocking next year.”

The tax deferral allows eligible producers in designated areas to defer income tax on the sale of breeding livestock for one year to help replenish breeding stock in the following year. Proceeds from deferred sales are included as income in the next tax year, when they may be at least partially offset by the cost of replacing breeding animals. In the case of consecutive years of designation, producers may defer sales income to the first year in which the area is no longer designated.

To defer income, the breeding herd must have been reduced by at least 15%. If this is the case, 30% of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30%, 90% of income from net sales can be deferred.

Eligible producers will be able to request this deferral when filing their 2012 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.
In addition to the tax deferral, producers have access to assistance through existing federal/provincial Business Risk Management programs, such as AgriInsurance, AgriStability and AgriInvest.

For more information on the extent of the drought situation or programs to assist farmers, see the AAFC website -

For a list of the additional 2012 livestock tax deferral-prescribed regions, please see the backgrounder. The full list of designated areas for the 2012 Livestock Tax Deferral Provision can be found on AAFC’s Drought Watch site at

Additional 2012 Livestock Tax Deferral-Prescribed Regions:

British Columbia:
• Peace River Regional District

• Alberta:
• Birch Hills County
• Clear Hills County
• Municipal District of Fairview No. 136
• Grande Prairie County No. 1
• Mackenzie County
• Municipal District of Peace No. 135
• Municipal District of Spirit River No. 133
• Northern Lights County
• Saddle Hills County

• RM 119 De Salaberry
• RM 127 Franklin
• RM 135 Hanover
• RM 138 La Broquerie
• RM 151 Montcalm
• RM 152 Morris
• RM 164 Rhineland
• RM 165 Ritchot
• RM 175 Ste. Anne
• RM 194 Taché
• RM 203 Whitemouth
• RM 610 Piney
• RM 611 Reynolds
• RM 612 Stuartburn
• Division No. 1, Unorganized

• District of Rainy River
• County of Frontenac
• County of Hastings
• County of Lennox and Addington
• County of Northumberland
• County of Prince Edward
• Territorial District of Algoma
• Territorial District of Manitoulin

• Regional County Municipality of Témiscamingue

Source: Agriculture and Agri-Food Canada

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