Saskatchewan Farm Producers Association calls for livestock tax deferral

The Agricultural Producers Association of Saskatchewan is calling on the federal government to implement a livestock tax deferral program for 2022.

“Many areas of western Saskatchewan are still in the grip of an unprecedented drought, which is driving the sale of cattle herds,” said APAS Vice President Scott Owens.

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Owens says many producers are running out of feed and pastures have not recovered from a lack of moisture. “We have a lot of cattle ranchers who, you know, ran out of feed last year, so they didn’t have anything extra to support them,” Owens says.

It’s not just last year, though. He says the drought so far this spring has meant that the grass in the pastures is not turning green as everyone had hoped.

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“You’re already consuming little feed, then you’re piling on a lack of pasture,” he says. “This forces farmers to liquidate their herd in many cases.”

All of these struggles add up to driving some cattlemen out of the industry, says Owens,

“If you’re a cattle rancher and you’re in that 50 to 60 age bracket, the money just isn’t there to stay, so a lot of them just choose to sell the herd. and to retire or move on another occasion”.

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For farmers who sell their herd, Owens says if it’s an unexpected sale, it would be taxed at over 50%.

“If the tax deferral is not granted, it only imposes a real financial burden on producers who are forced to liquidate their herd.”

The APAS is primarily interested in the dry situation in the west, but there is also a herd liquidation in the very remote southeast with excess moisture.

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