Tax Deferral for Livestock Producers

Agriculture and Marketing Minister Ed Lorraine says he is pleased with a federal decision to offer a tax deferral to owners of breeding livestock in Digby, Annapolis, Kings, Hants, Colchester and Cumberland counties.

Livestock producers in these counties who were forced to sell all or part of their herds because of this summer's dry weather and limited forage supply will be eligible for a tax deferral on 1998 income from these sales. This one-year deferral, which was offered to Nova Scotia livestock producers last year, gives them an opportunity to replace or replenish their herds the following year.

"Livestock producers in some areas of the province were affected by the shortage of hay and feed this summer because of the dry weather," said Mr. Lorraine. "I was able to discuss this option with the federal agricultural minister and I am pleased that Ottawa has decided to offer this to Nova Scotia livestock producers hurt by the summer's severe weather."

Eligible producers can request the deferral when filling out their 1998 income tax returns. They are asked to contact a Revenue Canada office for details.

The federal move follows the provincial government's announcement of a $20-million relief package for Nova Scotia producers hard hit by two years of disastrous weather. A toll-free hay line was also established for a second consecutive summer to help producers find hay.