Ottawa, Ont. (Rural Roots Canada) — Farmers affected by the 2024 and 2025 bovine tuberculosis outbreak are going to get a tax break.
Minister of Agriculture and Agri-Food, Heath MacDonald, made the announcement last month, proposing to extend the income tax deferral for livestock producers in Alberta, Saskatchewan and Manitoba who received compensation for livestock ordered to be destroyed due to the outbreaks.
The extension would allow livestock producers to spread compensation payments from 2026 through 2030, providing additional financial flexibility as they rebuild their herds.
The prescribed tax break schedule follows:
- up to 100% of the compensation deferred to the 2027 tax year, with at least 83% included in income in 2027
- up to 17% of the compensation deferred to the 2028 tax year, with at least 9% included in income in 2028
- up to 8% of the compensation deferred to the 2029 tax year, with at least 4% included in income in 2029
- up to 4% of the compensation deferred to the 2030 tax year, with the remaining 4% included in income in 2030
“This extended tax deferral period would address the unique realities faced by producers as they rebuild their herds after animal health events,” Macdonald said in a statement.
The Animal Health Act was designed to provide compensation to help producers recover from losses of livestock reported to the federal government.
The federal government says it will continue working with industry and provinces to protect animal health, strengthen agricultural resilience and support rural communities.
More information can be found at the Government of Canada website.
