Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

December 19, 2008 14:35 ET

Tax Deferral to Benefit Farmers in Saskatchewan

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 Saskatchewan. 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 designated areas of southern Saskatchewan 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.

Please see the following list of designated areas for 2008.



2008 DESIGNATIONS - SASKATCHEWAN

RM 9 Surprise Valley
RM 10 Happy Valley
RM 11 Hart Butte
RM 12 Poplar Valley
RM 17 Val Marie
RM 18 Lone Tree
RM 40 Bengough
RM 42 Willow Bunch
RM 43 Old Post
RM 44 Waverley
RM 45 Mankota
RM 46 Glen McPherson
RM 71 Excel
RM 72 Lake of the Rivers
RM 73 Stonehenge
RM 74 Wood River
RM 75 Pinto Creek
RM 76 Auvergne
RM 77 Wise Creek
RM 78 Grassy Creek
RM 103 Sutton
RM 104 Gravelbourg
RM 105 Glen Bain

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