Initial Livestock Tax Deferral regions announced

Cattle producers in drought-impacted parts of Alberta will qualify for Livestock Tax Deferral in 2025, the federal agriculture minister has announced.

The federal government has released the initial list of regions eligible for the deferral. The deferral allows producers in prescribed areas to defer a portion of their income from sales until the next tax year if they are forced to sell at least 15 per cent of their breeding herd due to drought.

Buffer zones have been applied to include producers just outside the prescribed areas who may be facing similar conditions. Agriculture and Agri-Food Canada will continue to monitor weather, climate, and production data throughout the season, and additional regions will be added as they meet the criteria.

“By offering a tax deferral option to those in affected areas, we are helping folks manage uncertainty, make informed business decisions, and safeguard their livelihoods,” says Heath MacDonald, Minister of Agriculture and Agri-Food.

Eligibility Requirements

• Producers must have reduced their breeding herd by at least 15 per cent.
• In consecutive years of drought, excess moisture, or flooding, sales income may be deferred to the first year the region is no longer prescribed.
• Additional regions are designated when forage shortfalls reach 50 per cent or more due to adverse conditions.

Additional Support Programs

Livestock producers also have access to federal business risk management programs, including AgriStability, AgriInsurance, and AgriInvest.

For 2025, enhancements to AgriStability include:

• Maximum payment limit increased from $3 million to $6 million.
• Compensation rate increased from 80 per cent to 90 per cent.

Alberta areas include

• Big Lakes County¹
• Bighorn No. 81
• Birch Hills County¹
• Bonnyville No. 87¹
• Cardston County
• Clear Hills¹
• Clearwater County¹
• Cypress County
• Fairview No. 136¹
• Foothills County¹
• Forty Mile County No. 8¹
• Grande Prairie County No. 1
• Greenview No. 16
• Improvement District No. 12 (Jasper Park)¹
• Lac la Biche County¹
• Lethbridge County¹
• Mackenzie County¹
• Newell County¹
• Northern Lights County¹
• Pincher Creek No. 9
• Ranchland No. 66
• Rocky View County¹
• Saddle Hills County
• Smoky River No. 130¹
• Special Area No. 2¹
• Special Area No. 3¹
• Spirit River No. 133¹
• Taber¹
• Warner County No. 5¹
• Willow Creek No. 26¹
• Wood Buffalo¹
• Woodlands County¹
• Yellowhead County¹

¹ Buffered Designated Regions

View Prescribed Regions