With severe drought conditions providing a significant challenge to livestock producers in 2021, there are some important assistance measures available that all Alberta producers should be aware of. The following are two of the most important and widely accessible benefits available, including a new program recently introduced for 2021.
2021 Canada-Alberta Livestock Feed Assistance Initiative – AgriRecovery Program
On August 6, 2021 the Federal Government announced funding through the AgriRecovery Framework to assist livestock producers with additional producer costs incurred due to drought. The program is called the 2021 Canada-Alberta Livestock Feed Assistance Initiative, and is a cost-shared partnership with the provincial governments with Alberta’s program being administered through Agriculture Financial Services Corporation (AFSC).
Information has now been provided by AFSC on their website at https://afsc.ca/income-stabilization/agrirecovery/.
Applications are now available through AFSC Connect for the initial payment of $94 per head for inventory of eligible breeding females on hand as of August 6, 2021 (for beef cows but other livestock are also included at different rates).
Applicants should plan to keep a record of expenses incurred to feed livestock up to December 31, 2021 as these records maybe required for the possible second payment of up to $106 per head (this second payment will be dependent on federal funding and circumstances).
Update December 15, 2021: Applications for the phase two payment of up to $106/head ($200/head total, including the phase one payment) are scheduled to be available January 5, 2022. The second payment will be based on grazing breeding female livestock as at December 31, 2021 and calculated using a feed-need calculation. The payment calculation will be based on the table below:
Proof of eligible expenses in the form of receipts or other supporting documentation will not be required as part of the application. However, these must be made available upon request by administration.
Note: If you did not apply for the phase one payment of $94/head, you can use phase two to apply for up to the full $200/head.
Livestock Tax Deferral
The Livestock Tax Deferral Provision allows for a portion of sales proceeds to be deferred to the following year, where producers in prescribed regions sell breeding stock due to drought.
The prescribed regions for 2021 are noted at https://agriculture.canada.ca/en/agriculture-and-environment/drought-watch-and-agroclimate/livestock-tax-deferral-provision/2021-list-prescribed-regions. Most of Southern Alberta is included for 2021.
Where a breeding herd is reduced by more than 30%, 90% of income from net sales can be deferred. If the breeding herd is reduced by 15%-30%, 30% of net sales can be deferred. Additional details on how this provision works can be found at https://agriculture.canada.ca/en/agriculture-and-environment/drought-watch-and-agroclimate/livestock-tax-deferral-provision.
The information in this publication is current as of Decvember 22, 2021.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Gregory, Harriman & Associates LLP to discuss these matters in the context of your particular circumstances. Gregory, Harriman & Associates LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.