Unprecedented moisture in 2010 has prompted the federal and provincial governments to offer tax deferrals to a number of rural municipalities, many in the federal constituency of Yorkton-Melville.
Garry Breitkreuz, Member of Parliament for Yorkton-Melville, says the announcement comes following much communication with those livestock producers affected by this year's flooding.
"I have travelled throughout the riding and talked to many producers," details Breitkreuz.
"The conditions this year are horrendous. Many livestock producers are facing the prospect of not having enough feed or good quality feed and straw to keep their animals through the winter. The tax deferral on the sale of breeding livestock will serve as an option for many."
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 2010 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.
This preliminary designation has been established based on soil moisture and summer rainfall, supplemented with estimates of forage yield and feed availability. Final decisions and any needed adjustments will be made when all the impacts of the excess moisture are known and when forage yield information becomes available. Assessment of the excess moisture situation will continue throughout the fall and, as more data about forage yields are known, tax deferral areas could be expanded.
"In all, 32 rural municipalities in Yorkton-Melville have been designated as regions where producers will qualify for the 2010 livestock tax deferral," adds Breitkreuz.
"Many of the livestock producers I talked to have the opportunity to minimize their feed issues by selling their cattle this fall without facing heavy income tax burdens.
"I'm aware that this won't be a solution for everyone, but I believe this is another step in assisting our livestock producers."
Yorkton-Melville Rural Municipalities designated as 2010 Livestock Tax Deferral Prescribed Regions include the following:
RM's of: 211 Churchbridge; Salt-coats; Cana; Stanley; Tullymet; 241 Calder; 243 Wallace; 244 Orkney; 245 Garry; 246 Ituna Bon Accord; 247 Kellross; 271 Cote; 273 Sliding Hills; 274 Good Lake; 275 Insinger; 276 Foam Lake; 301 St. Philips; 303 Keys; 304 Buchanan; 305 Invermay; 331 Living-ston; 333 Clayton; 334 Preeceville; 335 Hazel Dell; 336 Sasman; 337 Lakeview; 366 Kelv-ington; 367 Ponass Lake; 394 Hudson Bay; 395 Porcupine; 397 Barrier Valley; and 426 Bjorkdale.
