Ottawa announces 2025 livestock tax deferral regions
Relief aims to ease financial strain from drought, flooding
19 August 2025
2 minute read
By: Canada's federal government has released the initial list of regions eligible for the 2025 Livestock Tax Deferral, a financial relief measure for producers forced to sell breeding stock due to drought, flooding or excess moisture, according to a government-issued press release.
The announcement was made August 18 by Agriculture and Agri-Food Minister Heath MacDonald, who said the measure will help livestock producers manage growing uncertainty brought on by climate-related challenges.
“By offering a tax deferral option to those in affected areas, we are helping folks manage uncertainty, make informed business decisions, and safeguard their livelihoods,” said MacDonald.
The Livestock Tax Deferral provision allows eligible producers to defer a portion of the income from the sale of breeding animals until the following tax year. This can reduce the tax impact of forced sales and help offset the cost of herd rebuilding.
To qualify, producers must be in a prescribed region and have reduced their breeding herd by at least 15%. Additional regions may be added to the list as conditions evolve. Buffer zones have also been included to ensure support reaches affected producers just outside official boundaries.
The government continues to monitor weather, climate and production data across Canada, with further regions expected to be added as they meet eligibility criteria—namely, forage shortfalls of 50% or more.
Alongside the tax deferral, producers are encouraged to enrol in business risk management programs such as AgriStability, AgriInsurance and AgriInvest. For 2025, the AgriStability compensation rate will increase from 80% to 90%, and the payment cap will rise from $3 million to $6 million.
A full list of eligible regions will be available on the Agriculture and Agri-Food Canada website.
