By Erika Rolling

Agriculture

Federal government authorizes livestock tax deferral for select parts of Western Canada

Aug 22, 2023 | 12:16 PM

On Monday, the Minister of Agriculture and Agri-Food, the Honourable Lawrence MacAulay, announced an initial list of regions affected by extreme weather conditions in 2023 that have been authorized for the Livestock Tax Deferral.

Livestock producers in Western Canada are facing exceptionally dry conditions and significant challenges in keeping livestock healthy and fed.

The Livestock Tax Deferral is designed to allow livestock producers that are forced to sell part or all of their breeding herd, following drought or excess moisture conditions. This allows producers to defer a portion of their income from sales until the subsequent tax year.

Income may be partially offset due to the cost of reacquiring breeding stock, therefore reducing the tax burden with the originating sale.

The preliminary list of prescribed drought and flood regions came out earlier this year to help provide assurance for farmers that need to make difficult decisions for herd management.

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Map of designated regions eligible for the 2023 Livestock Tax Deferral as of August 22, 2023. Photo courtesy AAFC

The areas that are eligible for the tax deferral program in the Peace region are:

• County of Grande Prairie No. 1
• Saddle Hills County
• MD of Spirt River No. 133
• MD of Fairview No. 136
• MD of Peace No. 135
• Birch Hills County
• Clear Hills County
• County of Northern Lights
• Mackenzie County

Affected regions in neighboring British Columbia are:

• Peace River B, C, D, E
• Northern Rockies

Under the Livestock Tax Deferral provision, to defer income, the breeding herd must have been reduced by at least 15 per cent.

The federal government is also working with the provincial governments of Alberta, British Columbia, and Saskatchewan on joint AgriRecovery assessments for the impacts of wildfire and drought over previous years to determine additional support required to cover extraordinary costs.