Watch above: The federal government is being asked to defer taxes for Saskatchewan ranchers forced to sell their stock because of dry conditions. Meaghan Craig has reaction from the affected groups and the federal minister.
The Saskatchewan Stock Growers Association (SSGA) wants the federal government to give some tax relief to producers affected by dry conditions. The group is asking the federal government to allow drought stricken ranchers to defer taxes on livestock they are forced to sell due to the dry conditions.
READ MORE: Saskatchewan producers facing potential hay shortage
“We believe that implementing the livestock tax deferral provision will help ease the financial pain for producers that are selling into a depressed marked for bred cows and allow them to rebuild their herds once growing conditions have improved,” said Doug Gillespie, president of the association.
Livestock producers have been hit hard by the dry conditions. Last week, Saskatchewan Agriculture reported many hay swaths were smaller than normal and pasture growth is limited.
According to Rob O’Connor, a cattle producer southeast of Regina, some areas around his homestead are the worst they’ve been in 15 years, while other parts have been blessed with a bit of rain.
“It’s very spotty and in some areas it’s very devastating. My local area there isn’t going to be enough hay for everybody so we’re going to have find alternatives way to purchase feed and to find new ways to feed the cattle this year than what we’ve been used the last number of years.”
According to SSGA, producers are reporting that hay yields are down as much as 50 to 70 per cent below normal in several areas in the province.
“There are increasing areas of the province where they’ve had some fairly adequate rains but big dry areas too and some of those are very dry,” said Saskatchewan’s Minister of Agriculture Lyle Stewart.
Gillespie said given those conditions, livestock producers may be forced to sell portions of their breeding stock despite recent rain in some parts of the province.
“While recent rains will improve pasture conditions in some areas, it is too late for many hay crops as well as any producers forced to sell due to poor pasture growth earlier in the season.”
Gillespie added that hay is at record high prices due to the short supply.
“We expect many producers will find it difficult to find the feed required to carry their cowherds through the winter, depending on whether some drought damaged grain crops can be salvaged for forage to be used in cattle feed.”
Both the federal and provincial governments have announced measures in recent weeks to assist producers dealing with the drought, including opening up development fund land for producers short of pasture and changes to the crop insurance program.
The call for tax relief comes a day after the rural municipality of Maple Creek applied to the province for disaster assistance for the drought that has struck southern Saskatchewan.
The situation is no better to the west of Saskatchewan but it appears the feds are listening.
“We’ll certainly take a strong look at it, we’ve done it before and certainly we recognize the value of doing that so we’ll put in play,” said Canada’s Minster of Agriculture Gerry Ritz.
“Of course, we’re a long ways away from the tax season for this year for anybody selling them off they won’t actually have to do that accounting until the end of march next year so we’re certainly on-side with what needs to be done to make sure that they have the ability to manage their herds.”
In Alberta, Leduc County declared a local state of agriculture disaster at a special meeting Tuesday morning due to what’s being called extreme drought conditions that are impacting local producers.
READ MORE: Another Alberta county declares agricultural disaster
Producers in Alberta say it is the driest season they have experienced in 50 years. Two other counties in Alberta have declared local states of agriculture disaster in the past week.
According to O’Connor, herds have already gone to sale in that province and stock yards are full because of a lack of rain.
“Cattle markets have been good but when there’s no feed that can also change the markets so you would hate to see people lose equity because we hit rains at the wrong time of the year.”
With files from Global’s Slav Kornick, Meaghan Craig and The Canadian Press
Comments