Livestock tax deferral coverage increases, price insurance pilot launches in Maritimes

From the August 2024 issue of Canadian Cattlemen

Reading Time: 3 minutes

Published: August 20, 2024

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The CCA was glad to see the Livestock Price Insurance two-year pilot officially launched in several Maritime provinces.

With the summer months upon us, some folks take holidays. We know that isn’t the case when you’re a beef producer. Making hay while the sun is shining and praying that the rain stays away when the fields are ready for baling is what we do. 

CCA’s work on the hill has paid off over the past few months with the government’s announcement of the Livestock Tax Deferral (LTD) program’s increased buffer zones to accommodate more areas covered by the risk management tool. We have been advocating for changes to the LTD for years but with the recent and frequent drought years, CCA increased advocacy efforts to both Agriculture and Agri-Food Canada, and Finance Canada to make these critical changes. 

The federal government has taken a summer break from Ottawa but that doesn’t mean our efforts relax. We are still pushing for changes to the Income Tax Act to include all classes of cattle and to allow producers to self-elect when they need to use the LTD. We have also continued to consult financial advisors on the newly implemented capital gains tax on June 25. When we have more information on how these new rules may have an impact on family farm transitions and sell-offs, we will be providing that information to our producers. 

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We were also glad to see the Livestock Price Insurance two-year pilot officially launched in several Maritime provinces. The new program will permit producers from New Brunswick and Prince Edward Island — and soon Nova Scotia — to purchase insurance on price protection for their beef cattle in the case of an unforeseen market disruption. CCA and the Canadian Cattle Youth Council have been advocating for this program for many years, following the implementation of price insurance in western provinces. It’s a valuable tool for beef cattle producers to help navigate uncertainty and risks related to adverse weather events. It is also critical for those entering the sector or looking to expand their herds. 

Moving cattle has been a hot topic as we have been assisting provincial producers to have their voices heard during the Cargill strike in Ontario. During that time, producers out East have had to look at alternate locations for processing, with the U.S. as an alternate. With the U.S.’s 100-day rule currently in place, this has placed even more pressure when farmers have had to ship across the border. Increased transportation costs and keeping animals on the farm longer have created additional hardships and CCA is committed to keep working with provincial producer groups to ensure their voices are heard. The strike underlined the importance of keeping our supply chain efficiently operational and we will do all we can to help ensure that happens. Science and rules-based trade are more important now than ever. 

Speaking of across the border, at the time of writing this article, the highly pathogenic avian influenza (HPAI) has not been detected in beef or milk samples in Canada. We applaud our Canadian producers who always keep biosecurity measures top of mind to ensure business continuity. The markets are there and demand for our quality Canadian beef continues to grow at home and abroad. 

On the environmental front, we want to congratulate our latest provincial nominees for the Environmental Stewardship Awards. As we all know, beef cattle producers play a huge role in protecting and enhancing our environment. Special congratulations to the provincial Environmental Stewardship Award nominees — Frédérique Lavallée and Simon Lafontaine of Ecoboeuf, situated within Lafontaine-Noël farm in Dupuy, Abitibi-Ouest, Que. — and the Block family of Block’s Ranching Ltd. from Abbey, Sask

We commend you and all other nominees for the work and effort you put into continuously striving to improve your existing stewardship practices, setting our industry up for a sustainable future. At the time of writing, we are awaiting the Alberta nominee announcement with the national winner announced to be announced in August. 

We thank you for reading this publication to stay on top of the latest industry news. I also encourage you to sign up for CCA’s Action Newsletter which is emailed bi-weekly all year round. It features CCA’s latest advocacy efforts in more detail, youth news, industry news and events. Visit cattle.ca to sign up and receive these email updates. 

Protecting our herds, expanding our markets and improving your bottom line are our goals in all CCA activities. We are beef producers working for beef producers and are here to serve you.

About the author

Nathan Phinney

Columnist

Nathan Phinney is president of the Canadian Cattle Association.

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