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.
If located in a prescribed region, where a breeding herd is reduced by more than 30%, 90% of income from net sales can be deferred to the next tax year. If the breeding herd is reduced by 15%-30%, 30% of net sales can be deferred.
Beginning in 2024, the Government of Canada will now complete a preliminary list of prescribed drought regions in the spring. The prescribed regions for 2024 were announced last week and include Wheatland County and much of southern Alberta.
For additional details on how the program works and a full list of the Prescribed Drought Regions for 2024 visit the Government of Canada’s Livestock Tax Deferral webpage.
If you have questions about the 2024 drought assistance measures for livestock producers, contact contact Gregory, Harriman & Associates LLP by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone at 1-403-934-3176.