Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

February 01, 2007 16:21 ET

Canada's New Government Extends Federal Tax Deferral to Help More Farmers in Southern Saskatchewan

OTTAWA, ONTARIO--(CCNMatthews - Feb. 1, 2007) - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that Canada's New Government will extend federal tax deferrals for additional livestock producers in Southern Saskatchewan.

"In addition to helping producers in Southwest Saskatchewan, we are happy to announce that we will provide assistance to producers in areas to the east and north of the area initially designated through our federal tax deferral program," said Minister Strahl. "This program will assist livestock owners who were affected by drought, and who were forced to sell all or part of their herd. Canada's New Government is committed to helping producers overcome the challenges of the past several years."

Eligibility for the one-year federal tax deferral has been extended to include the additional rural municipalities listed below.

"A significant portion of Southern Saskatchewan experienced drought conditions this past summer, including livestock feed shortages, poor pasture conditions and farm water shortages," said Carol Skelton, Regional Minister of Saskatchewan. "This program is another way to help producers keep more money in their pockets as they recover from the impact of drought and restock their herds in the spring."

Owners of breeding livestock in the designated rural municipalities who were forced to sell all or part of their herd this year due to drought conditions will be eligible for a one-year tax deferral on 2006 income from these sales.

To defer income, the breeding herd must have been reduced by at least 15 per cent. Thirty per cent of income from net sales can be deferred if the breeding herd has been reduced by at least 15 per cent, but less than 30 per cent. Where the herd has been reduced by 30 per cent or more, 90 per cent of income from net sales can be deferred.

The 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. In the case of consecutive years of drought designation, producers may defer sales income to the first year in which the area is no longer designated.

Eligible producers will be able to request this deferral when filing their 2006 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.

Please see attached list of designated areas for 2006.



2006 FINAL DESIGNATIONS

SASKATCHEWAN ((i)) Additional Designation

RM 8 LAKE ALMA (i)
RM 9 SURPRISE VALLEY (i)
Rm 10 HAPPY VALLEY (i)
RM 11 HART BUTTE (i)
RM 12 POPLAR VALLEY (i)
RM 17 VAL MARIE
RM 18 LONE TREE
RM 19 FRONTIER
RM 38 LAURIER (i)
RM 39 THE GAP (i)
RM 40 BENGOUGH (i)
RM 42 WILLOW BUNCH (i)
RM 43 OLD POST (i)
RM 44 WAVERLEY (i)
RM 45 MANKOTA
RM 46 GLEN MCPHERSON
RM 49 WHITE VALLEY
RM 51 RENO
RM 76 AUVERGNE
RM 77 WISE CREEK
RM 78 GRASSY CREEK
RM 79 ARLINGTON
RM 106 WHISKA CREEK (i)
RM 107 LAC PELLETIER
RM 108 BONE CREEK
RM 109 CARMICHAEL
RM 110 PIAPOT
RM 111 MAPLE CREEK
RM 138 WEBB
RM 139 GULL LAKE
RM 141 BIG STICK
RM 169 PITTVILLE
RM 229 MIRY CREEK (i)
RM 230 CLINWORTH (i)

Contact Information

  • Agriculture and Agri-Food Canada, Ottawa, Ontario
    Media Relations
    613-759-7972
    1-866-345-7972
    or
    Minister Strahl's office
    Jeff Howard
    Press Secretary
    613-759-1059
    or
    Agriculture and Agri-Food Canada, Regina, Saskatchewan
    Trevor Hadwen
    306-780-8405