Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

August 27, 2012 16:48 ET

Tax Relief Available for Drought-Affected Livestock Farmers in Ontario and Quebec

OTTAWA, ONTARIO--(Marketwire - Aug. 27, 2012) - The Harper Government is supporting livestock producers in Ontario and Quebec who are struggling as a result of extremely dry growing conditions by offering livestock tax deferrals to producers in drought-affected municipalities.

"This summer's hot and dry weather has drastically reduced feed supplies for many Ontario and Quebec farmers, forcing them to make some tough herd management decisions," said Agriculture Minister Gerry Ritz. "With a tax deferral, producers will have some breathing room by being able to redirect money towards replenishing next year's breeding stock and get back to business.."

In addition to tax deferral, producers have access to assistance through existing business risk management (BRM) programs, including AgriInsurance, AgriStability, and AgriInvest. Producers can contact Agricorp and La Financière agricole du Québec for details.

Federal and provincial officials are working as quickly as possible to assess the impact of drought under the AgriRecovery Framework to determine whether further assistance beyond existing programs is needed to help producers deal with the potential additional costs. The AgriRecovery assessment will be completed once harvest is complete and the full impact of the disaster is known.

"While the effects of drought can be seen on fields in many parts of central and eastern Canada, it is still too early to know the full extent of damage to crops and feed stocks," said Parliamentary Secretary Pierre Lemieux. "Production is still underway and recent rains may still improve the crop and feed outlook. Farmers can be assured that we are keeping a close eye on the situation." Mr. Lemieux will be attending a farmer round table in Renfrew, Ontario today hosted by Member of Parliament Cheryl Gallant (Renfrew County).

The tax 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. Proceeds from deferred sales are included as income in the next tax year, when they may be at least partially offset by the cost of replacing breeding animals. In the case of consecutive years of designation, producers may defer sales income to the first year in which the area is no longer designated.

To defer income, the breeding herd must have been reduced by at least 15%. If this is the case, 30% of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30%, 90% of income from net sales can be deferred.

Eligible producers will be able to request this deferral when filing their 2012 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.

For more information on the extent of the drought situation or programs to assist farmers, see the AAFC web site at

For a list of 2012 livestock tax deferral prescribed regions, please see the backgrounder.

2012 Livestock Tax Deferral Prescribed Regions

Census Division Brant
Census Division Haldimand-Norfolk
Census Division Hamilton
Census Division Ottawa
District of Parry Sound
District Municipality of Muskoka
County of Bruce
County of Dufferin
County of Grey
County of Huron
County of Lanark
County of Oxford
County of Perth
County of Renfrew
County of Wellington
Regional Municipality of Halton
Regional Municipality of Niagara
Regional Municipality of Waterloo
United Counties of Prescott and Russell
Regional County Municipality of Les Collines-de-l'Outaouais
Regional County Municipality Papineau
Regional County Municipality of Pontiac
Territory Equivalent Gatineau

Contact Information

  • Media Relations
    Agriculture and Agri-Food Canada
    Ottawa, Ontario

    Meagan Murdoch
    Director of Communications
    The Office of the Honourable Gerry Ritz