Saskatchewan Stockgrowers Association, June 21, 2015
Saskatchewan Stock Growers Association (SSGA) President, Doug Gillespie, today asked the federal government to take the steps required to allow drought stricken ranchers to defer taxes on livestock they have been forced to sell due to dry conditions.
In announcing the request Gillespie said, “Livestock producers in several areas across Saskatchewan are reporting hay yields that are from 50%-70% below normal as well as poor growth on pastures. As a result, many producers could be forced to sell portions of their breeding herds.”
Gillespie added, “While recent rains will improve pasture conditions in some areas, it is too late for many hay crops as well as any producers forced to sell due to poor pasture growth earlier in the season.”
“We have had reports from producers indicating that hay is in short supply across the province with prices running at record high levels,” said Gillespie, “We expect many producers will find it difficult to find the feed required to carry their cowherds through the winter, depending on whether some drought damaged grain crops can be salvaged for forage to be used in cattle feed.”
The SSGA’s tax deferral request is aimed at a federal policy provision whereby the Ministers of Agriculture and Finance can designate certain areas as significantly impacted by drought. This in turn allows producers in these areas to defer a portion of the tax due on breeding animals sold due to drought until the following year. This provision helps producers retain some of the cash required to rebuild their herds when drought conditions abate.
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Posted July 27, 2015