ALDOBA

 

 

By Lisa Schmidt, Calgary HeraldJuly 22, 2009 10:01 AMComments (1)

 

 

CALGARY - Alberta farmers forced to sell cattle because of drought are eligible for tax deferrals, government officials announced Wednesday.

“Our government understands the strain that many livestock producers are facing due to a cool, dry spring in some parts of Alberta,” Federal Agriculture Minister Gerry Ritz said in a statement.

Producers in 26 drought-affected counties and districts can apply for tax deferrals on breeding livestock. The deferral allows farmers to claim income tax from the sale in the following year to help replenish breeding stock the following year.

Farmers who reduced their breeding herds by at least 15 per cent are eligible.

The province’s latest crop report shows moisture levels are still poor in most parts of the province, raising concerns over a shortage of livestock feed this fall.

Alberta beef producers have warned the drought may force more ranchers to thin their herds this year. Alberta’s 1.85-million head of beef cattle could shrink nearly 30 per cent this year, industry officials have estimated, as producers sell livestock amid rising feed costs.

lschmidt@theherald.canwest.com