Sarnia

Tax Break For Forage-Short Western Livestock Producers

Livestock producers in B-C, Alberta, Saskatchewan and Manitoba are getting some federal tax relief .

They're going to be allowed to defer tax on their cattle sales for 2014 for one year.

Federal Agriculture Minister Gerry Ritz says that should help them manage their forage shortfalls by allowing them to redirect money towards restocking next year's breeding herd.

B-C and Alberta farmers faced drought conditions this year.

In Saskatchewan and Manitoba, farmers had too much moisture.

The end result for producers in all four province was a shortfall of forage supplies.

To qualify, producers have to have had at least a 15 per cent reduction in their breeding herd.

That qualifies them to defer 30 per cent of the income from net sales.

If the herd has been reduced by more than 30 per cent, qualifying Western Canadian livestock producers could defer 90 per cent of the income from net sales.

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