Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

August 02, 2011 13:29 ET

Government of Canada Provides Tax Deferrals to More Livestock Producers

OTTAWA, ONTARIO--(Marketwire - Aug. 2, 2011) - More livestock producers in Manitoba and Saskatchewan will have financial breathing room to help cope with excess moisture and flooding. Agriculture Minister Gerry Ritz announced today that the list of designated areas eligible for tax deferrals has been expanded.

"This spring was very difficult for our farmers in the Prairies, as they faced extreme weather conditions and unprecedented flooding," said Agriculture Minister Gerry Ritz. "By adding these regions to the list of those eligible for the tax deferral program, producers will be better positioned to cope with the results of the wet and cold conditions."

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 re-acquiring 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 Canada Revenue Agency at http://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. AgriRecovery assessments are nearing completion.

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.

Additional 2011 Livestock Tax Deferral Prescribed Regions

Manitoba:

RM 100 ALBERT
RM 101 ARCHIE
RM 103 ARTHUR
RM 105 BIFROST
RM 109 BRENDA
RM 111 CAMERON
RM 116 CORNWALLIS
RM 122 EDWARD
RM 129 GIMLI
RM 131 GLENWOOD
RM 148 MINIOTA
RM 153 MORTON
RM 157 OAKLAND
RM 162 PIPESTONE
RM 184 SIFTON
RM 199 WALLACE
RM 202 WHITEHEAD
RM 204 WHITEWATER
RM 205 WINCHESTER
RM 207 WOODWORTH
RM 602 ARMSTRONG
RM 605 FISHER
Saskatchewan:

RM 1 ARGYLE
RM 2 MOUNT PLEASANT
RM 3 ENNISKILLEN
RM 4 COALFIELDS
RM 5 ESTEVAN
RM 6 CAMBRIA
RM 7 SOURIS VALLEY
RM 8 LAKE ALMA
RM 31 STORTHOAKS
RM 32 RECIPROCITY
RM 33 MOOSE CREEK
RM 34 BROWNING
RM 35 BENSON
RM 36 CYMRI
RM 37 LOMOND
RM 38 LAURIER
RM 61 ANTLER
RM 63 MOOSE MOUNTAIN
RM 64 BROCK
RM 65 TECUMSEH
RM 66 GRIFFIN
RM 67 WEYBURN
RM 68 BROKENSHELL
RM 91 MARYFIELD
RM 92 WALPOLE
RM 93 WAWKEN
RM 94 HAZELWOOD
RM 95 GOLDEN WEST
RM 96 FILLMORE
Saskatchewan:

RM 97 WELLINGTON
RM 98 SCOTT
RM 121 MOOSOMIN
RM 122 MARTIN
RM 123 SILVERWOOD
RM 125 CHESTER
RM 126 MONTMARTRE
RM 127 FRANCIS
RM 128 LAJORD
RM 129 BRATT'S LAKE
RM 151 ROCANVILLE
RM 152 SPY HILL
RM 153 WILLOWDALE
RM 154 ELCAPO
RM 155 WOLSLEY
RM 181 LANGENBURG
RM 183 FERTILE BELT
RM 184 GRAYSON
RM 185 MCLEOD
RM 211 CHURCHBRIDGE
RM 213 SALTCOATS
RM 214 CANA
RM 243 WALLACE
RM 244 ORKNEY

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