Another 10 Alberta municipalities are now eligible for the federal government’s livestock tax deferral program.
Agriculture and Agri-Food Canada’s initial list of eligible municipalities issued in September has been expanded to include many counties passed over the first time.
Municipalities are only eligible for the program if forage yields fall below 50 per cent of the long-term average in that region. Producers in those areas who are forced to sell livestock will be allowed to defer a portion of that income into 2019. This allows income from sales this year to be offset by the purchase of replacement breeding stock next year.
The program will have little impact for producers making only minor culls. Producers must be cutting their breeding stock by at least 15 per cent to qualify. Farmers cutting between 15 and 30 per cent of their herd will be able to defer 30 per cent of that income, while producers cutting their herd by 30 per cent or more will be able to bump that deferral up to 90 per cent of the net sales. Producers in eligible regions can request the tax deferral when filing their 2018 income tax returns.
The newly added municipalities are:
- Bighorn No. 8
- Clearwater County
- Flagstaff County
- Foothills No. 31
- Lamont County
- Mackenzie County
- Minburn County No. 27
- Ranchland No. 66
- Starland County
- Stettler County No. 6
For a complete list of eligible municipalities and more details on the program, go to the Agriculture and Agri-Food Canada website.