Tax Deferral for Livestock Producers

Agriculture and Marketing Minister Ernest Fage said he is pleased with a federal decision to offer a tax deferral to owners of breeding livestock in Digby, Annapolis, Kings, Hants, Yarmouth 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 1999 income from these sales. This one-year deferral, which was offered to Nova Scotia livestock producers the past two years, will give breeders an opportunity to replace or replenish their herds next 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. Fage. "I am pleased that Ottawa has decided to once again offer this to Nova Scotia livestock producers hurt by severe weather conditions."

Eligible producers can request the deferral when filling out their 1999 income tax returns. They are asked to contact Revenue Canada for details.

Other areas of the province may also be eligible pending further review. An announcement on further eligibility will be made by the federal government some time in late 1999 or early 2000.

The federal move follows the provincial government's announcement to accelerate the $20-million provincial relief program for Nova Scotia producers hit hard by three years of disastrous weather. The program, accelerated from five years to three, will see an additional $6 million given to farmers to a total of $10 million in payments under the program this fiscal year.