CFA welcomes proposed tax amendments to help livestock producers affected by flooding

OTTAWA, March 5, 2009 -- The Canadian Federation of Agriculture welcomed today's announcement by the federal government to provide assistance for livestock producers affected by flooding.
 
The changes announced today by Minister Ritz and tabled in the House of Commons by Finance Minister, Jim Flaherty, will result in tax amendments to help farmers who have had to sell their breeding herds of grazing livestock as a result of flood or excessive moisture.
 
"This announcement is welcome news in assisting not only Manitoba livestock producers affected in the summer of 2008 get back on their feet," said CFA President Laurent Pellerin.  "But it also has the potential to assist all Canadian livestock producers who may find themselves in the unfortunate position of having to liquidate their herds due to weather related events in the future."
 
The announcement recognizes the need for flood situations to be acknowledged under the tax deferral, which previously only allowed producers affected by drought a one-year deferral on income on the sale of breeding livestock.
 
The announcement also echoes a number of resolutions brought forward by Keystone Agriculture Producers and passed at the CFA Annual General Meeting last week calling for assistance for producers affected by excess moisture conditions.