Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

March 03, 2009 18:16 ET

Manitoba Livestock Producers Affected by Drought Will Get Assistance From Federal Government

OTTAWA, ONTARIO--(Marketwire - March 3, 2009) - Federal Agriculture Minister Gerry Ritz today announced livestock producers in Manitoba will be eligible for tax deferrals on livestock sold due to drought in 2008.

"Our Government understands the strain that livestock producers are facing and have been facing for several years," said Minister Ritz. "We will continue to put farmers first to ensure these families can weather these challenges and continue to drive the Canadian economy."

Producers from an additional 13 Rural Municipalities in southwest Manitoba who were forced to sell all or part of their herd due to drought conditions will be eligible for a one-year tax deferral on 2008 income from these 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.

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 2008 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.

Please see attached list of designated areas in Manitoba for 2008.

MANITOBA

RM 100 Albert(i)

RM 103 Arthur(i)

RM 109 Brenda(i)

RM 111 Cameron(i)

RM 122 Edward(i)

RM 131 Glenwood(i)

RM 153 Morton(i)

RM 162 Pipestone(i)

RM 166 Riverside(i)

RM 184 Sifton(i)

RM 196 Killarney - Turtle Mountain(i)

RM 204 Whitewater(i)

RM 205 Winchester(i)

(i) - additional designation

Contact Information

  • Agriculture and Agri-Food Canada
    Ottawa, Ontario
    Media Relations
    613-759-7972
    1-866-345-7972
    or
    The Office of the Honourable Gerry Ritz
    Meagan Murdoch
    Press Secretary
    613-759-1059