Regulatory Initiative: Livestock Deferral - Forward Regulatory Plan 2023-2025

Livestock Deferral

Amendments to the Income Tax Regulations: Livestock deferral. A tax deferral is provided to farmers who dispose of “breeding animals” or “breeding bees” in a year due to drought or excess moisture conditions. To qualify for this deferral, a farm has to be identified as being in an area that suffers from drought or excess moisture conditions in the year and that is prescribed for the year in the Income Tax Regulations. Such prescriptions usually take place each year.

The Small Business Lens is not expected to apply.

The list of regions that may be prescribed for a year is developed through consultations held by the Department of Agriculture and Agri-Food with various parties, including provincial agriculture and municipal affairs departments, municipalities, farm associations, and crop insurers.

A preliminary list of regions to be recommended for a year is typically announced by the Department of Agriculture and Agri-Food in September of each year, and a final list is typically announced in December of each year. Canadians in general are given opportunities to comment on the regions recommended to be prescribed as part of the consultations held by the Department of Agriculture and Agri-Food prior to announcement of the final list of recommended regions for a year. Information on these announcements is available through Agriculture and Agri-Food Canada's website.