Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

March 07, 2008 18:02 ET

Tax Deferral to Benefit Farmers in Southern, Eastern and Northwest Ontario

OWEN SOUND, ONTARIO--(Marketwire - March 7, 2008) - Owners of breeding livestock in certain areas of southern, eastern and northwest Ontario 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.

The announcement was made by Mr. Guy Lauzon, Parliamentary Secretary to the Minister of Agriculture and Agri-Food and Minister for the Federal Economic Development Initiative for Northern Ontario, who made the announcement on behalf of the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board.

"This government understands the ongoing impact drought has on farmers, which is why Ontario farmers struggling with drought will continue to receive support from the Government of Canada through our tax deferral program," said Mr. Lauzon. "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.

"Over the years farmers in Ontario and across Canada have shown their continued resilience in facing bad weather challenges," said the Honourable Jim Flaherty, Minister of Finance. "The Government of Canada continues to listen to farmers and provide the support they need to do their job."

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.


BACKGROUNDER

2007 DESIGNATIONS



ONTARIO

City of Hamilton
City of Kawartha Lakes
City of Toronto
County of Brant
County of Bruce
County of Dufferin
County of Elgin
County of Essex
County of Frontenac
County of Grey
County of Haldimand
County of Hastings
County of Huron
County of Lambton
County of Lennox and Addington
County of Middlesex
County of Northumberland
County of Norfolk
County of Oxford
County of Perth
County of Peterborough
County of Prince Edward
County of Simcoe
County of Wellington
Municipality of Chatham-Kent
Regional Municipality of Durham
Regional Municipality of Halton
Regional Municipality of Niagara
Regional Municipality of Peel
Regional Municipality of Waterloo
Regional Municipality of York
Territorial District of Algoma
Territorial District of Manitoulin
Territorial District of Thunder Bay
United Counties of Leeds and Greenville

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