Several Alberta regions qualify for 2026 livestock tax deferral

Several Alberta regions have been included on the federal government’s initial list of prescribed areas under the Livestock Tax Deferral provision for 2026.

Agriculture and Agri-Food Canada (AAFC) announced the list September 1, 2026. It identifies areas affected by drought, excess moisture, or flooding that have created feed shortages for livestock producers.

In Alberta, the initial list includes:

• Cardston County
• County of Forty Mile No. 8
• Lethbridge County
• Municipality of Pincher Creek No. 9
• Municipal District of Taber
• County of Warner No. 5
• Municipal District of Willow Creek No. 26

The Livestock Tax Deferral provision helps producers who are forced to sell part of their breeding herd because of feed shortages. It allows them to defer a portion of the income from those sales until the following tax year.

To qualify, producers must reduce their breeding herd by at least 15 per cent. Those who reduce their herd by at least 15 per cent, but less than 30 per cent, can defer 30 per cent of their income from net sales. Producers who reduce their herd by 30 per cent or more can defer 90 per cent of that income.

Since 2024, neighbouring regions facing similar forage shortages have also been eligible for designation. This can apply even when local conditions do not meet the same thresholds as prescribed regions.

The federal government develops the list using weather and climate data analyzed through the Canadian Drought Monitor. Additional regions may be added later in the year if conditions warrant.

“Canadian livestock producers work hard every day to be resilient in the face of unpredictable challenges due to extreme weather conditions,” said Agriculture and Agri-Food Minister Heath MacDonald. “Through the Livestock Tax Deferral provision, our government is giving them greater flexibility and certainty as they make important decisions about their herds and operations.”

AAFC also noted that producers can access several business risk management programs, including AgriStability, AgriInsurance, and AgriInvest.