Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

December 24, 2009 12:38 ET

Government of Canada Helps Alberta Livestock Producers Affected by Drought

OTTAWA, ONTARIO--(Marketwire - Dec. 24, 2009) - The Government of Canada announced today that more Alberta livestock producers affected by drought will be eligible for a federal tax deferral.

"The Government of Canada continues to deliver real results for farmers and ranchers by offering tax deferrals to the producers whose operations are suffering due to the hot, dry season," said Agriculture Minister Gerry Ritz. "These tax deferrals are just another way in which we are working to make sure our livestock producers can remain competitive and profitable."

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. 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.

"Earlier this year the Government acted quickly to assist producers who are struggling due to drought conditions," said the Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture). "The designation of these additional areas is a result of our continued monitoring of the impacts of the weather on our farmland as well as our hands-on approach to supporting Alberta farmers and ranchers."

Producers who reduced their breeding herds by at least 15 per cent are eligible. Thirty per cent of income from net sales can be deferred if the 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.

"A number of regions in Alberta experienced very dry conditions this year," said Agriculture and Rural Development Minister George Groeneveld. "Our provincial and federal governments remain committed to working with Alberta's cattle producers. We continue to monitor soil moisture levels and are watching what is coming next year."

Eligible producers will be able to request this deferral when filing their 2009 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.

Additional designations are a result of the continuous assessment of the drought situation throughout the fall.

For more information on the extent of the drought or programs to assist farmers, see the AAFC Drought Watch site at

Newly Designated Alberta Tax Deferral Areas

Grande Prairie County No. 1
M.D. of Opportunity No. 17
Northern Sunrise County
Saddle Hills County
Yellowhead County

Previously Designated Alberta Tax Deferral Areas

Athabasca County No. 12
Barrhead County No. 11
Birch Hills County
Brazeau County
City of Calgary
Clear Hills County
Clearwater County
City of Edmonton
Lac la Biche County
Lac Ste. Anne County
Mountain View County
Municipal District of Big Lakes
Municipal District of Bonnyville No. 87
Municipal District of Fairview No. 136
Municipal District of Greenview No. 16
Municipal District of Lesser Slave River No.124
Municipal District of Northern Lights No. 22
Municipal District of Peace No. 135
Municipal District of Smoky River No. 130
Municipal District of Spirit River No. 133
Rocky View County
Smoky Lake County
St. Paul County No. 19
Thorhild County No. 7
Westlock County
Wheatland County
Woodlands County
Beaver County
Camrose County No. 22
County of Minburn No. 27
County of Paintearth No. 18
County of Stettler No. 6
County of Two Hills No. 21
County of Vermilion River No. 24
County of Wetaskiwin No. 10
Flagstaff County
Improvement District No. 13
Kneehill County
Lacombe County
Leduc County
Lamont County
Municipal District of Acadia No. 34
Municipal District of Provost No. 52
Municipal District of Wainwright No. 61
Parkland County
Ponoka County
Red Deer County
Special Area No. 2
Special Area No. 3
Special Area No. 4
Starland County
Strathcona County
Sturgeon County

Contact Information

  • Agriculture and Agri-Food Canada
    Ottawa, Ontario
    Media Relations
    The Office of the Honourable Gerry Ritz
    Meagan Murdoch
    Press Secretary