Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

September 08, 2009 16:07 ET

Government of Canada to Help Saskatchewan Livestock Producers Affected by Drought

OTTAWA, ONTARIO--(Marketwire - Sept. 8, 2009) - The Government of Canada is offering tax deferrals to an expanded list of municipalities for livestock producers struggling due to drought.

"These tax deferrals will put money back in the pockets of the producers whose operations are suffering due to the cool, dry season," said Agriculture Minister Gerry Ritz. "We will continue to put farmers first and work with industry and the provincial government to address the challenges facing producers."

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

"This Government is stepping in to assist producers who are struggling due to drought conditions this year," said Minister Blackburn, Minister of National Revenue and Minister of State (Agriculture). "Our Government continues to assess the affects a cool, dry spring and summer in some parts of Saskatchewan and, as a result we have designated more areas for tax exemption on livestock sales."

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.

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 west central region of Saskatchewan 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.

Assessment of the drought situation will continue throughout the fall and, as more data about forage yields are known, tax deferral areas could be expanded.

For more information on the extent of the drought or programs to assist farmers, see the AAFC Drought Watch site at


Newly Designated Saskatchewan Tax Deferral Areas

RM 18 Lone Tree
RM 74 Wood River
RM 78 Grassy Creek
RM 104 Gravelbourg
RM 108 Bone Creek
RM 138 Webb
RM 164 Chaplin
RM 134 Shamrock

Previously Designated Saskatchewan Tax Deferral Areas

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

Contact Information

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