Alberta Ag Minister announces Tax Deferrals in Drought Afftected Areas
OTTAWA, Ontario, July 22, 2009 – Agriculture Minister Gerry Ritz today announced livestock
producers in Alberta in drought affected areas will be eligible for tax deferrals on breeding
livestock sold due to drought in 2009. “Our Government understands the strain that many
livestock producers are facing due to a cool, dry spring in some parts of Alberta,” said Minister
Ritz. “We will continue to put farmers first so that they have the programs and assistance needed
to overcome challenges and continue to drive the Canadian economy.”
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. In the case
of consecutive years of drought designation, producers may defer sales income to the first year in
which the area is no longer designated.
Producers who reduced their breeding herds by at least 15 per cent are eligible. Thirty per cent of
income from net sales can be deferred if the herd has been reduced by at least 15 per cent, but
less than 30 per cent. Where the herd has been reduced by 30 per cent or more, 90 per cent of
income from net sales can be deferred.
“This tax deferral will assist Alberta producers as they decide whether to reduce their breeding
herds due to drought,” said George Groeneveld, Alberta Minister of Agriculture and Rural
Development. “We know that the livestock sector is hurting and we’ll continue to work with the
federal government to make sure that they get the help they need, when they need it.”
Eligible producers will be able to request this deferral when filing their 2009 income tax returns.
Livestock producers are advised to contact their local Canada Revenue Agency Tax Services
Office for details on the income tax provisions.
While forage yield information is not available until later in the year, designations can be made
earlier in the year based primarily on spring moisture conditions and estimates of forage yield.
Early designation of eligible areas will allow producers to make informed decisions about fall and
winter livestock management decisions.
The central region of Alberta has experienced very dry conditions since last summer. Fall
precipitation was not adequate to recharge soil moisture and combined with an extremely low
snow accumulation this past winter, spring soil moisture conditions were poor. Well below normal
temperatures and continued dry conditions throughout the spring have resulted in very poor
pasture and forage development.
As the growing season continues, further areas can be designated for the tax deferral should they
meet the established criteria.
Present Alberta Tax Deferral Designated Areas
· Beaver County
· Camrose County No. 22
· County of Minburn No. 27
· County of Paintearth No. 18
· County of Stettler No. 6
· County of Two Hills No. 21
· County of Vermilion River No. 24
· County of Wetaskiwin No. 10
· Flagstaff County
· Improvement District No. 13
· Kneehill County
· Lacombe County
· Leduc County
· Lamont County
· Municipal District of Acadia No. 34
· Municipal District of Provost No. 52
· Municipal District of Wainwright No. 61
· Parkland County
· Ponoka County
· Red Deer County
· Special Area No. 2
· Special Area No. 3
· Special Area No. 4
· Starland County
· Strathcona County
· Sturgeon County