Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

July 22, 2009 12:08 ET

Government of Canada to Help Saskatchewan Livestock Producers Affected by Drought

OTTAWA, ONTARIO--(Marketwire - July 22, 2009) - Agriculture Minister Gerry Ritz today announced livestock producers in Saskatchewan in drought affected areas will be eligible for tax deferrals on breeding livestock sold due to drought in 2009.

"Our Government understands the strain that many livestock producers are facing due to a cool, dry spring in some parts of Saskatchewan," said Minister Ritz. "We will continue to put farmers first to make sure they have the programs and assistance needed to overcome these challenges and continue to drive the Canadian economy."

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 designation, producers may defer sales income to the first year in which the area is no longer designated.

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.

"This tax deferral will assist Saskatchewan producers forced to sell breeding stock due to drought," said Saskatchewan Agriculture Minister Bob Bjornerud. "We will continue to monitor the drought situation and work with industry and the federal government to address the challenges facing 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.

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.

West central Saskatchewan started off the growing season with insufficient moisture due to limited fall and winter precipitation and extremely low runoff. Exceptionally low water supplies, feed shortages and well below normal forage production have resulted in significant impacts on producers. In early July, southwest Saskatchewan's moisture conditions deteriorated resulting in very poor pasture and hay growth.

As the growing season continues, further areas can be designated for the tax deferral should they meet the established criteria

Saskatchewan Tax Deferral Designated Areas

RM 17 Val Marie RM 231 Happyland RM 346 Perdue
RM 44 Waverley RM 232 Deer Forks RM 347 Biggar
RM 45 Mankota RM 254 Loreburn RM 349 Grandview
RM 46 Glen McPherson RM 255 Coteau RM 350 Mariposa
RM 75 Pinto Creek RM 256 King George RM 351 Progress
RM 76 Auvergne RM 257 Monet RM 352 Heart's Hill
RM 77 Wise Creek RM 259 Snipe Lake RM 376 Eagle Creek
RM 105 Glen Bain RM 260 Newcombe RM 377 Glenside
RM 106 Whiska Creek RM 261 Chesterfield RM 378 Rosemount
RM 107 Lac Pelletier RM 283 Rosedale RM 379 Reford
RM 135 Lawtonia RM 284 Rudy RM 380 Tramping Lake
RM 136 Coulee RM 285 Fertile Valley RM 381 Grass Lake
RM 137 Swift Current RM 286 Milden RM 382 Eye Hill
RM 165 Morse RM 287 St. Andrews RM 409 Buffalo
RM 166 Excelsior RM 288 Pleasant Valley RM 410 Round Valley
RM 167 Saskatchewan RM 290 Kindersley RM 411 Senlac
Landing RM 292 Milton RM 438 Battle River
RM 168 Riverside RM 315 Montrose RM 439 Cut Knife
RM 169 Pittville RM 316 Harris RM 440 Hillsdale
RM 194 Enfield RM 317 Marriott RM 442 Manitou Lake
RM 224 Maple Bush RM 318 Mountain View RM 469 Turtle River
RM 225 Canaan RM 319 Winslow RM 470 Paynton
RM 226 Victory RM 320 Oakdale RM 471 Eldon
RM 228 Lacadena RM 321 Prairiedale RM 472 Wilton
RM 229 Miry Creek RM 322 Antelope Park RM 502 Britannia
RM 230 Clinworth RM 345 Vanscoy

Contact Information

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