How much funding can be received?

Funds up to 15% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Livestock Tax Deferral Provision?

Livestock Tax Deferral Provision is funded by Agriculture and Agri-Food Canada (AAFC), Government of Canada

What are Livestock Tax Deferral Provision's eligibility criterias?

Farmers must carry on a farming business in a prescribed area. The breeding herd must have been reduced by at least 15% due to drought, excess moisture, or flooding.

Livestock Tax Deferral Provision

Last Update: January 24, 2025

Canada

Tax deferral for livestock producers in some Atlantic regions

Livestock Tax Deferral Provision at a glance

Eligible Funding

Up to 15% of project cost

Timeline

Continuous Intakes

Financing Type

Tax Credits

Eligible Industries

Agriculture, forestry, fishing and hunting

Grant Providers

Agriculture and Agri-Food Canada (AAFC)
Government of Canada

Status

Open

Overview of the Livestock Tax Deferral Provision program

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.

Eligible projects & activities

Examples of admissible projects:

$ 135,000

Launching a tech startup for renewable energy solutions

$ 49,500

Expanding a sustainable agricultural practice initiative

$ 54,000

Renovating and upgrading an animal shelter facility

$ 108,000

Developing an eco-friendly packaging line for a food company

$ 207,000

Establishing a community-focused seafood distribution network

$ 16,200

Organizing a community health and wellness fair

Eligibility criteria of the Livestock Tax Deferral Provision program

Eligibility for the Livestock Tax Deferral provision is determined by specific criteria related to the area's condition and herd reduction.

Farmers must carry on a farming business in a prescribed area affected by drought, excess moisture, or flooding.
The breeding herd must have been reduced by at least 15%.
Regions are prescribed based on forage yields being less than 50% of the long-term average due to drought or flooding.
Regions adjacent to qualifying areas are also eligible if they experience similar adverse conditions.

Who is eligible?

The Livestock Tax Deferral provision is available to farmers operating within prescribed regions who have sold part of their breeding herd due to adverse weather conditions. Specifically, it targets those in identified drought or flood zones who have had to reduce their breeding herd by at least 15%.

Who is not eligible

This provision primarily targets farmers within specific prescribed regions affected by drought or flooding. There are no explicit mentions of other industries or businesses being eligible or restricted.

Eligible geographic areas

This provision benefits farmers operating in specified regions identified due to adverse weather conditions. Eligibility is determined by drought and flood region designations.

Designated drought and flood regions as prescribed by the Canadian government.
Regions adjacent to the prescribed drought and flood regions beginning in 2024.

Eligibility criteria of the Livestock Tax Deferral Provision program

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.

How to apply to the Livestock Tax Deferral Provision program

Identify Eligibility

Determine if your farm is located in a region that has been prescribed due to drought or flood for the relevant year by consulting the prescribed regions list.
Ensure that your breeding herd has been reduced by at least 15% as required for eligibility.

Gather Documentation

Compile records of livestock sales and purchase details for the applicable tax year.
Ensure you have documentation supporting the reduction in your breeding herd.

Calculate Deferral

Calculate the percentage of income that can be deferred based on the reduction in breeding herd: 30% for a 15%–30% reduction, or 90% for over 30% reduction.

Complete Tax Reporting

Use the CRA publication T4002, Chapter 2 to correctly report your farming income deferral on Line 9470.
Seek advice from the Canada Revenue Agency if needed to ensure accuracy.

Submit Tax Forms

File your income tax return with the Canada Revenue Agency, including the deferral amounts correctly calculated and reported.

Confirm Submission

Retain copies of your tax forms and any correspondence from the CRA for your records.

Additional information

Here are additional relevant details for this grant:

Regions adjacent to qualifying areas are also included to ensure broader coverage for farms affected by adverse weather conditions.
Updates to prescribed regions are monitored and communicated throughout the growing season to keep farmers informed.
The process for identifying prescribed regions has been streamlined to allow earlier identification and assistance for farmers.
The Canadian Drought Monitor plays a crucial role in gathering data used to identify prescribed regions.

Contact Agriculture and Agri-Food Canada (AAFC)

aafc.taxdeferral-reportdelimpot.aac@agr.gc.ca

Apply to this program

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