Livestock Producers in Three Provinces Receive Tax Relief for 2016
News Release
Alberta, Ontario and Quebec regions designated for the 2016 Livestock Tax Deferral Provision
November 22, 2016 – Ottawa, Ontario – Agriculture and Agri-Food Canada
Minister of Agriculture and Agri-Food, Lawrence MacAulay, today released a list of designated regions in Alberta, Ontario and Quebec where livestock tax deferrals have been authorized for 2016 due to drought.
The livestock tax deferral provisions allow livestock producers in prescribed drought regions to defer a portion of their 2016 sale proceeds of breeding livestock until the next year to help replenish the herd. The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale.
Eligibility for the tax deferral is limited to those producers located inside the designated areas prescribed as drought regions. Producers can request the tax deferral when filing their 2016 income tax returns.
Quick Facts
- Low moisture levels resulted in significant forage shortages for livestock producers in Alberta, Ontario and Quebec forcing some producers to sell all or part of their breeding herd.
- This list represents the current designation of affected areas. Further to discussions with the impacted provinces, additional designations are being added to the list and will be released as soon as possible.
- In addition to the tax deferral, livestock producers are encouraged to take full advantage of assistance available under Growing Forward 2 Business Risk Management programs.
Quotes
"The Government of Canada understands the impacts that drought and other extreme weather conditions had on farm operations this year, forcing some producers to make difficult business decisions. This tax relief will allow affected farmers to defer a portion of their sales to the next year, assisting them in making sound herd-management decisions."
- Lawrence MacAulay, Minister of Agriculture and Agri-Food
Related Products
- Livestock Tax Deferral Provisions – Designated Areas Eligible for 2016
Additional Links
- Growing Forward 2 – Business Risk Management Programs (Agriculture and Agri-Food Canada)
- Drought Watch (Agriculture and Agri-Food Canada)
Contacts
Guy Gallant
Director of Communications
Office of the Honourable Lawrence MacAulay
613-773-1059
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
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