Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

March 07, 2008 18:21 ET

Tax Deferral to Benefit Farmers in Southern Alberta

OTTAWA, ONTARIO--(Marketwire - March 7, 2008) - Owners of breeding livestock in certain areas of southern Alberta who were forced to sell all or part of their herd in 2007 due to drought conditions will be eligible for a one-year tax deferral on 2007 income from these sales.

"This government understands the ongoing impact drought has on farmers, which is why Alberta farmers struggling with drought will continue to receive support from the Government of Canada through our tax deferral program," said the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board. "Tax provisions offered by this program will allow farmers to restock their herds in the spring."

The deferral was made after reviewing forage yield, precipitation, soil moisture and water supply data for the 2007 growing season. 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.

"The Government of Canada is making sure our hard-working farmers here in southern Alberta and across Canada get help and support when they need it the most," said the Honourable Jim Prentice, Minister of Industry and the Member of Parliament for Calgary Centre-North. "This Government will continue to support farmers struggling with drought through our tax deferral program."

Thirty per cent of income from net sales can be deferred if the breeding 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 will help replenish breeding stock in the coming year.

Eligible producers will be able to request this deferral when filing their 2007 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.



2007 DESIGNATIONS

ALBERTA

Municipal District of Pincher Creek No. 9
Municipal District of Ranchland No. 66
Municipal District of Taber
Municipal District of Willow Creek No. 26
Municipality of Crowsnest Pass
Cardston County
Cypress County
County of Warner No. 5
County of Forty Mile No. 8
County of Lethbridge

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
    Margaux Stastny
    Press Secretary
    613-759-1059