(Photo courtesy Farm & Food Care Ontario)

Livestock Tax Deferral List

A final list of designated regions where livestock tax deferral has been authorized for 2016 due to drought conditions has been released for five provinces, including Ontario.

The other provinces are British Columbia, Alberta, Quebec and Nova Scotia.

The livestock tax deferral provision allows producers in designated drought regions who are facing feed shortages, to defer a portion of their sale proceeds of breeding livestock to the next year. The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale. Eligible producers can request the tax deferral when filing their 2016 income tax returns, or if they have already filed, submit an adjustment request directly to the Canada Revenue Agency.

Low moisture levels resulted in significant forage shortages for livestock producers in the five provinces and one option for producers is to reduce their breeding herd in order to manage feed supplies.

In addition to the livestock tax deferral provision, producers have access to assistance through existing Growing Forward 2 Business Risk Management programs, which include AgriInsurance, AgriStability and AgriInvest.