Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

July 22, 2009 11:11 ET

Government of Canada to Help Alberta Livestock Producers Affected by Drought

OTTAWA, ONTARIO--(Marketwire - July 22, 2009) - Agriculture Minister Gerry Ritz today announced livestock producers in Alberta 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 Alberta," said Minister Ritz. "We will continue to put farmers first so that they have the programs and assistance needed to overcome challenges and continue to drive the Canadian economy."

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.

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 Alberta producers as they decide whether to reduce their breeding herds due to drought," said George Groeneveld, Alberta Minister of Agriculture and Rural Development. "We know that the livestock sector is hurting and we'll continue to work with the federal government to make sure that they get the help they need, when they need it."

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.

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

Alberta Tax Deferal Designated Areas

Beaver County Lamont County
Camrose County No. 22 Municipal District of Acadia No. 34
County of Minburn No. 27 Municipal District of Provost No. 52
County of Paintearth No. 18 Municipal District of Wainwright No. 61
County of Stettler No. 6 Parkland County
County of Two Hills No. 21 Ponoka County
County of Vermilion River No. 24 Red Deer County
County of Wetaskiwin No. 10 Special Area No. 2
Flagstaff County Special Area No. 3
Improvement District No. 13 Special Area No. 4
Kneehill County Starland County
Lacombe County Strathcona County
Leduc 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