Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

September 08, 2009 15:59 ET

Government of Canada to Help Alberta Livestock Producers Affected by Drought

OTTAWA, ONTARIO--(Marketwire - Sept. 8, 2009) - The Government of Canada is offering tax deferrals to an expanded list of municipalities for livestock producers struggling due to drought.

"These additional tax deferrals will put money back in the pockets of the producers whose operations are suffering due to the cool, dry season," said Agriculture Minister Gerry Ritz. "We will continue to put farmers first and work with industry and the provincial government to address the challenges facing producers."

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.

"This Government is stepping in to assist producers who are struggling due to drought conditions this year," said Minister Blackburn, Minister of National Revenue and Minister of State (Agriculture). "Our Government continues to assess the affects a cool, dry spring and summer in some parts of Alberta and, as a result we have designated more areas for tax exemption on livestock sales."

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.

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.

While forage yield information is not available until later in the year, designations can be made earlier in the year based primarily on spring moisture conditions and estimates of forage yield. Early designation of eligible areas will allow producers to make informed decisions about fall and winter livestock management decisions.

The central region of Alberta 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. Well below normal temperatures and continued dry conditions throughout the spring have resulted in very poor pasture and forage development.

Assessment of the drought situation will continue throughout the fall and, as more data about forage yields are known, tax deferral areas could be expanded.

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

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

Previously Designated Alberta Tax Deferral Areas

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