Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

December 24, 2009 13:01 ET

Government of Canada Helps British Columbia Livestock Producers Affected by Drought

OTTAWA, ONTARIO--(Marketwire - Dec. 24, 2009) - The Government of Canada announced today that more livestock producers affected by drought in British Columbia 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 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 British Columbia 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.

"B.C.'s Ranching Task Force heard from livestock producers in the Peace Region and Bulkley-Nechako who have been hit particularly hard by drought this year and brought those concerns forward for me to raise with our federal colleagues," said B.C. Agriculture and Lands Minister Steve Thomson. "I would like to thank Minister Ritz for acting quickly to expand the regions covered by the tax deferral program to help more B.C. producers."

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.

The central interior region of British Columbia has experienced very dry conditions since last summer. Fall precipitation was not adequate to recharge soil moisture and combined with an extremely low snow accumulation this past winter, spring soil moisture conditions were poor. Continued dry conditions throughout the spring have resulted in very poor pasture and forage development.

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

British Columbia Tax Deferral Designated Areas

New Designated Areas :

Census Subdivision Bulkley-Nechako B

Census Subdivision Bulkley-Nechako E

Census Subdivision Cariboo H

Census Subdivision Cariboo J

Census Subdivision Cariboo L

Census Subdivision Peace River C

Census Subdivision Peace River D

Census Subdivision Peace River E

Previously Designated Areas :

Census Subdivision Cariboo D

Census Subdivision Cariboo E

Census Subdivision Cariboo G

Census Subdivision Cariboo K

Census Subdivision Central Kootenay A

Census Subdivision Central Kootenay B

Census Subdivision Central Kootenay C

Census Subdivision Central Kootenay D

Census Subdivision Central Kootenay E

Census Subdivision Central Kootenay G

Census Subdivision Central Kootenay H

Census Subdivision Central Kootenay J

Census Subdivision Central Kootenay K

Census Subdivision Central Okanagan J

Census Subdivision Central Okanagan

Census Subdivision Columbia-Shuswap C

Census Subdivision Columbia-Shuswap D

Census Subdivision Columbia-Shuswap E

Census Subdivision Columbia-Shuswap F

Census Subdivision Kootenay Boundary B

Census Subdivision Kootenay Boundary C

Census Subdivision Kootenay Boundary D

Census Subdivision Kootenay Boundary E

Census Subdivision North Okanagan B

Census Subdivision North Okanagan D

Census Subdivision North Okanagan E

Census Subdivision North Okanagan F

Census Subdivision Okanagan-Similkameen A

Census Subdivision Okanagan-Similkameen B

Census Subdivision Okanagan-Similkameen C

Census Subdivision Okanagan-Similkameen D

Census Subdivision Okanagan-Similkameen E

Census Subdivision Okanagan-Similkameen F

Census Subdivision Okanagan-Similkameen G

Census Subdivision Okanagan-Similkameen H

Census Subdivision Spallumcheen

Census Subdivision Squamish-Lillooet A

Census Subdivision Squamish-Lillooet B

Census Subdivision Squamish-Lillooet C

Census Subdivision Thompson-Nicola E (Bonaparte Plateau)

Census Subdivision Thompson-Nicola I (Blue Sky Country)

Census Subdivision Thompson-Nicola J (Copper Desert Country)

Census Subdivision Thompson-Nicola L

Census Subdivision Thompson-Nicola M

Census Subdivision Thompson-Nicola N

Census Subdivision Thompson-Nicola O (Lower North Thompson)

Census Subdivision Thompson-Nicola P (Rivers and the Peaks)

Contact Information

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