Canada to support drought-stricken Western producers
Western Canada also impacted by wildfires
28 August 2023
2 minute read
By: Last week, Lawrence MacAulay, Canada's minister of agriculture, announced an initial list of designated regions in British Columbia, Alberta, Saskatchewan and Manitoba where Livestock Tax Deferral has been authorised for 2023 due to extreme weather conditions.
Compounded by subsequent years of drought, pastures and forage production have been significantly impacted, leading to low feed supplies for livestock.
The Canadian government is also working with the provincial governments of British Columbia, Alberta and Saskatchewan on joint AgriRecovery assessments to examine the impacts of the drought and wildfires. Work with provinces is urgently progressing to finalise the AgriRecovery process and to determine any additional support required to cover the extraordinary costs incurred by producers.
The Livestock Tax Deferral provision allows livestock producers who are forced to sell all or part of their breeding herd due to drought or excess moisture to defer a portion of their income from sales until the following tax year. The income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the tax burden associated with the original sale.
“My heart goes out to farmers and ranchers who are affected by these extreme weather conditions," Macaulay said. "Early designation of the Livestock Tax Deferral provision provides assurance so they can make informed decisions to manage their herds. We have also enhanced support available under BRM programs and we will continue to work closely with provinces to get producers the additional support they need as quickly as possible.”
