Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

July 11, 2011 12:14 ET

Government of Canada Offers Tax Deferrals for Manitoba Livestock Producers Affected by Excess Moisture

OTTAWA, ONTARIO--(Marketwire - July 11, 2011) - The Government of Canada today announced it will offer tax deferrals to livestock producers in designated areas of Manitoba who are struggling as a result of excess moisture. This support comes while governments continue working closely to assess the impact of excess moisture to determine what additional assistance is required.

"The spring of 2011 was very difficult for our farmers due to the destructive flooding on both Lake Manitoba and Shoal Lake," said Agriculture Minister Gerry Ritz. "The tax relief offered by the program will allow livestock owners to use savings to restock their herds in the spring."

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. Proceeds from deferred sales are included as income in the next tax year, when they may be at least partially offset by the cost of reacquiring breeding animals. 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.

To defer income, the breeding herd must have been reduced by at least 15 percent. If this is the case, 30 percent of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30 percent, 90 percent of income from net sales can be deferred.

Eligible producers will be able to request this deferral when filing their 2011 income tax returns. Livestock producers are advised to contact the at Canada Revenue Agencyhttp://www.cra-arc.gc.ca/cntct/phn-eng.html for details on the income tax provisions.

In addition to tax deferrals, existing federal-provincial Business Risk Management programs, such as AgriInsurance (crop insurance), AgriStability and AgriInvest, are in place to help farmers when situations such as flooding occur.

For more information on the extent of the excess moisture situation or programs to assist farmers, or for a complete list of designated areas for the 2011 Tax Deferral Program, see the AAFC Drought Watch site at www.agr.gc.ca/drought.

2011 Livestock Tax Deferral Prescribed Regions

This is an initial designation and additional assessments will be conducted to determine what other areas will be added later in the season.

Manitoba

RM 115 COLDWELL

RM 118 DAUPHIN

RM 125 ERIKSDALE

RM 130 GLENELLA

RM 140 LAKEVIEW

RM 143 LAWRENCE

RM 147 MCCREARY

RM 154 MOSSEY RIVER

RM 158 OCHRE RIVER

RM 163 PORTAGE LA PRAIRIE

RM 178 ST. LAURENT

RM 179 STE. ROSE

RM 185 SIGLUNES

RM 200 WESTBOURNE

RM 206 WOODLANDS

RM 601 ALONSA

RM 606 GRAHAMDALE

DIVISION NO. 18, UNORGANIZED, EAST PART

DIVISION NO. 18, UNORGANIZED, WEST PART

DIVISION NO. 19, UNORGANIZED

Contact Information

  • Media Relations
    Agriculture and Agri-Food Canada
    Ottawa, Ontario
    613-773-7972
    1-866-345-7972

    Meagan Murdoch
    Director of Communications
    The Office of the Honourable Gerry Ritz
    613-773-1059