The Government of Canada is again helping livestock producers in Manitoba who have been struggling as a result of excess moisture, by expanding the list of designated areas eligible for tax deferrals.
“We were being told by local farmers who were struggling as a result of the extreme weather conditions that they needed to be a part of this tax deferral program,” said Tweed. “We listened and by adding these local municipalities to the tax deferral program we are delivering the relief needed.”
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.
Eight municipalities in south-west Manitoba and one municipality in north-west Manitoba have been added due to excess moisture conditions resulting in poor yields and feed shortages.
Eligible producers will be able to request this deferral when filing their 2010 income tax returns. Livestock producers are advised to contact the Canada Revenue Agency) for details on the income tax provisions. (link: http://www.cra-arc.gc.ca/cntct/phn-eng.html)
In addition to tax deferrals, existing federal-provincial Business Risk Management programs, such as AgriInsurance (crop insurance), AgriStability and AgriInvest, will significantly help producers manage the impact of this natural disaster as the first lines of defence to address income shortfalls.
RM’s in Southwest Manitoba included are:
RM 100 Albert
RM 103 Arthur
RM 109 Brenda
RM 111 Cameron
RM 122 Edward
RM 162 Pipestone
RM 184 Sifton
RM 205 Winchester