Canadian farmers directly impacted by climate change and its effects this year might be eligible for a Livestock Tax Deferral.
Agriculture and Agri-Food Canada (AAFC) released an initial list of designated regions in Alberta, Saskatchewan and Manitoba, where Livestock Tax Deferral has been authorized for 2022 due to extreme weather conditions.
The provision allows livestock producers forced to sell a significant amount of their breeding herd due to drought or flooding to defer a portion of their income from sales until the following tax year.
The income may be partially offset by the cost of reacquiring breeding animals, reducing the potential tax burden associated with the original sale.
Eligible regions have been identified based on weather, climate and production data, in consultation with industry and provinces. The criteria for identifying regions for Livestock Tax Deferral include forage shortfalls of 50 per cent or more caused by drought or excess moisture.
The Government of Canada said it would continue to monitor conditions across the country to determine whether adding other regions throughout the year is required.