Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

December 19, 2008 14:32 ET

Tax Deferral to Benefit Farmers in Northern British Columbia

OTTAWA, ONTARIO--(Marketwire - Dec. 19, 2008) - The Government of Canada is offering 2008 tax deferrals to producers who have been dealing with drought in designated areas of northern British Columbia. Federal Agriculture Minister Gerry Ritz today announced that producers who resorted to selling off cattle to avoid financial losses due to drought conditions will be eligible for a one-year tax deferral on 2008 income from those sales.

"Producers need to be able to make good business decisions when dealing with drought," said Minister Ritz. "This Government is making sure producers can recover following the drought last summer when they were forced to sell cattle. Producers will be able to use these savings when they rebuild their herds in the spring."

The deferral was made after reviewing forage yield, precipitation, soil moisture and water supply data for the 2008 growing season, and provides a management option to breeding livestock owners. Owners of breeding livestock in British Columbia's Peace River Regional District who were forced to sell all or part of their herd in 2008 due to drought conditions are eligible for the deferral.

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.

"Agriculture is the backbone of our economy, especially during economic instability," said Minister Ritz. "Our Government will continue to ensure that producers can weather economic storms and continue to drive the Canadian economy."

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.

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