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Feds grant tax deferrals for western livestock producers hit by drought

Farmers east of Okotoks, Alberta are concerned about the dry season's impact. July 2015. Mia Sosiak / Global News

OTTAWA – Agriculture Minister Gerry Ritz says Ottawa is granting tax deferrals to western livestock producers in regions hit by drought.

The measure applies to producers in British Columbia, Alberta, Saskatchewan and Manitoba who are facing feed shortages.

WATCH: B.C. drought has impact on food prices 

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They will be allowed to defer a portion of their 2015 sale proceeds of breeding livestock for one year so that they can replenish that stock. Proceeds from deferred sales will then be included as part of a producer’s income in the  next tax year.

A breeding herd must have been reduced by at least 15 per cent to be eligible for a tax deferral.

READ MORE: ‘What do I do with my cattle?’ Alberta farmers struggle with near drought 

A spring and summer with insufficient rain has withered crops in many regions of Western Canada, including hay used by livestock producers to feed their animals.

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