Government of Canada Offers Tax Deferrals for Manitoba Livestock Producers Affected by Excess Moisture
July 12, 2011
OTTAWA, ONTARIO - The Government of Canada today announced it will offer tax deferrals to livestock producers in designated areas of Manitoba who are struggling as a result of excess moisture. This support comes while governments continue working closely to assess the impact of excess moisture to determine what additional assistance is required.
"The spring of 2011 was very difficult for our farmers due to the destructive flooding on both Lake Manitoba and Shoal Lake," said Agriculture Minister Gerry Ritz. "The tax relief offered by the program will allow livestock owners to use savings to restock their herds in the spring."
The tax deferral allows eligible producers in designated areas to defer income tax on the sale of breeding livestock for one year, to help replenish breeding stock in the following year. Proceeds from deferred sales are included as income in the next tax year, when they may be at least partially offset by the cost of reacquiring breeding animals. In the case of consecutive years of designation, producers may defer sales income to the first year in which the area is no longer designated.
To defer income, the breeding herd must have been reduced by at least 15 percent. If this is the case, 30 percent of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30 percent, 90 percent of income from net sales can be deferred.
Eligible producers will be able to request this deferral when filing their 2011 income tax returns. Livestock producers are advised to contact the at Canada Revenue Agencyhttp://www.cra-arc.gc.ca/cntct/phn-eng.html for details on the income tax provisions.
In addition to tax deferrals, existing federal-provincial Business Risk Management programs, such as AgriInsurance (crop insurance), AgriStability and AgriInvest, are in place to help farmers when situations such as flooding occur.
For more information on the extent of the excess moisture situation or programs to assist farmers, or for a complete list of designated areas for the 2011 Tax Deferral Program, see the AAFC Drought Watch site at www.agr.gc.ca/drought.
2011 Livestock Tax Deferral Prescribed Regions
This is an initial designation and additional assessments will be conducted to determine what other areas will be added later in the season.
RM 115 COLDWELL
RM 118 DAUPHIN
RM 125 ERIKSDALE
RM 130 GLENELLA
RM 140 LAKEVIEW
RM 143 LAWRENCE
RM 147 MCCREARY
RM 154 MOSSEY RIVER
RM 158 OCHRE RIVER
RM 163 PORTAGE LA PRAIRIE
RM 178 ST. LAURENT
RM 179 STE. ROSE
RM 185 SIGLUNES
RM 200 WESTBOURNE
RM 206 WOODLANDS
RM 601 ALONSA
RM 606 GRAHAMDALE
DIVISION NO. 18, UNORGANIZED, EAST PART
DIVISION NO. 18, UNORGANIZED, WEST PART
DIVISION NO. 19, UNORGANIZED
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