Livestock Tax Deferral Provision
Canada
Tax deferral for livestock producers in some Atlantic regions
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Agriculture and Agri-Food Canada (AAFC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
If you sold at least 15% of your breeding herd due to drought or flooding in Gaspésie, New Brunswick, Prince Edward Island or Northwestern Nova Scotia, you can defer up to 90% of the sale proceeds to the following year.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$135,000
Saint John
Launching a tech startup for renewable energy solutions
$49,500
Gaspé
Expanding a sustainable agricultural practice initiative
$54,000
Fredericton
Renovating and upgrading an animal shelter facility
$108,000
Charlottetown
Developing an eco-friendly packaging line for a food company
$207,000
Moncton
Establishing a community-focused seafood distribution network
$16,200
Bathurst
Organizing a community health and wellness fair
grant_single_labels|admissibility
Eligibility criteria for the Livestock Tax Deferral grant include:
- Breeding herd must be reduced by at least 15% to qualify for income deferral.
- For reductions between 15% and 30%, 30% of net sales income can be deferred.
- For reductions of 30% or more, 90% of net sales income can be deferred.
grant_eligibility_criteria|who_can_apply
There are eligible types of companies for the Livestock Tax Deferral provision in Canada:
- Companies involved in farming and breeding of livestock
- Ranching operations
- Animal husbandry businesses
grant_single_labels|criteria
In order to qualify for the Livestock Tax Deferral provision in Canada, farmers must meet specific evaluation and selection criteria. The criteria include the percentage reduction of the breeding herd and the designation of prescribed drought or flood regions by the Minister of Agriculture and Agri-Food Canada.
- Breeding herd must be reduced by at least 15% to qualify for income deferral.
- Different levels of income deferral are available based on the percentage of reduction in the breeding herd.
- Prescribed Drought and Flood Regions are designated when forage yields are less than 50% of the long-term average due to drought or flooding.
- Regions must have recognized geo-political boundaries and significant industry impact to be designated.
- Assessments of prescribed regions are made based on spring moisture, summer rainfall, and forage yield estimates.
grant_single_labels|register
- Consult the preliminary list of prescribed drought and flood regions usually completed in the early fall
- Review the final list of prescribed drought and flood regions usually made in December
- Contact appropriate authorities for more information or assistance
grant_single_labels|contact
aafc.taxdeferral-reportdelimpot.aac@agr.gc.ca
Apply to this program
Livestock Tax Deferral Grant Summary
The Livestock Tax Deferral provision allows farmers in prescribed drought or flood regions to defer a portion of sale proceeds when selling part of their breeding herd due to adverse weather conditions.
Understanding the Livestock Tax Deferral Grant
The Livestock Tax Deferral provision in Canada is a valuable tool for farmers facing drought or flooding in prescribed regions. When farmers are forced to sell part of their breeding herd due to severe weather conditions, they can defer a portion of the sale proceeds to the following tax year. This deferral helps to offset the potential tax burden by allowing income from livestock sales to be deferred and partially offset by reacquiring breeding animals in the next tax year.
The eligibility criteria for the Livestock Tax Deferral grant require that the breeding herd must be reduced by at least 15% to qualify for income deferral. Depending on the extent of the reduction, 30% or 90% of income from net sales can be deferred. Prescribed drought and flood regions are designated based on advice from the Minister of Agriculture and Agri-Food Canada to the Minister of Finance when forage yields are less than 50% of the long-term average due to adverse weather conditions. These regions must have recognized geo-political boundaries and be large enough to impact the industry to be designated.
The process of identifying prescribed drought or flood regions involves preliminary assessments based on spring moisture and summer rainfall, supplemented with estimates of forage yield. A final list of prescribed regions is typically released in December when finalized forage yield information is available. The Livestock Tax Deferral grant provides financial relief for farmers affected by consecutive years of drought or excess moisture and flood conditions, allowing them to defer sales income until the region is no longer prescribed.
For more information on the grant's process or criteria, individuals can contact aafc.taxdeferral-reportdelimpot.aac@agr.gc.ca. Questions regarding income deferral for prescribed drought/flood regions for tax purposes can be directed to the Canada Revenue Agency (CRA) or consulted in the CRA publication T4002. By utilizing the Livestock Tax Deferral provision, farmers can better manage their tax obligations during challenging agricultural circumstances.
