Saskatchewan producers who were hard hit by drought last year are being thrown a lifeline with the announcement of expanded coverage from the Federal Livestock Tax Deferral program.
Lawrence MacAulay, Minister of Agriculture and Agri-Food, made the announcement on Wednesday.
“Extreme weather conditions created difficulties for Canada’s livestock industry in several provinces this past year. This tax deferral will help farmers manage the impacts of drought and focus on rebuilding their herds and businesses,” he said in a statement.
On September 14, 2018, the government announced the initial list of prescribed regions in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec eligible for livestock tax deferral. A second designation of eligible regions was made on October 31. According to a press release from Agriculture and Agri-Food Canada, ongoing analysis of drought conditions has indicated the need to expand the list of designated regions for 2018, with new regions identified for Alberta, Saskatchewan, Manitoba, and Ontario.
While happy with the eligibility coverage expansion, the president of the Agricultural Producers Associatioin of Saskatchewan (APAS), has called for a review of the program for future years.
“It has been a very complex process to get those impacts recognized in the area designations,” APAS president Todd Lewis said in a statement. “We need a review of the technology and area boundaries used to determine the eligibility for the program. A final designation at the end of January, after the end of the tax year, does not allow producers to make informed business decisions.”
The livestock tax deferral provision allows producers in prescribed drought or excess moisture regions to defer a portion of their 2018 sale proceeds of breeding livestock until 2019 to help replenish the herd. The cost of replacing the animals in 2019 will offset the deferred income, thereby reducing the tax burden associated with the original sale. As of January 30th 2019, 75 per cent of Saskatchewan Rural Municipalities have been designated as eligible.
nigel.maxwell@jpbg.ca
On Twitter: @nigelmaxwell
