Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

December 12, 2006 15:05 ET

AAFC: Tax Deferral to Benefit Farmers in Northern British Columbia

OTTAWA, ONTARIO--(CCNMatthews - Dec. 12, 2006) - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced federal tax deferrals for livestock producers in northern British Columbia.

Owners of breeding livestock in the Regional Districts of Bulkley-Nechako, Fraser-Fort George, Kitimat-Stikine and Peace River in British Columbia who were forced to sell all or part of their herd this year due to drought conditions will be eligible for a one-year federal tax deferral on 2006 income from these sales.

The deferral was made after reviewing precipitation levels, soil moisture and available forage yield for the 2006 growing season, and provides a management option to breeding livestock owners who were forced to sell all or part of their herd due to drought conditions affecting feed or water supplies.

"Through this deferral, Canada's New Government is offering producers who choose to sell their cattle an important tax saving on the income received, allowing them to use these savings when restocking their herds in the spring," said Minister Strahl. "As such, it's a very valuable tool for producers recovering from the impacts of drought."

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.

Eligibility for deferral was made on the advice of Minister Strahl to Minister of Finance, Jim Flaherty.

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.

Contact Information

  • Agriculture and Agri-Food Canada, Ottawa, Ontario
    Media Relations
    613-759-7972 or 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