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By Pattison Media

Extended tax deferral period for livestock producers affected by 2024/25 bovine tuberculosis

Mar 27, 2026 | 2:21 PM

The federal government is proposing changes to the Income Tax Act that would give livestock producers more time to manage compensation payments received after bovine tuberculosis (TB) outbreaks in 2024 and 2025. 

The proposed amendments are aimed at producers in Alberta, Saskatchewan and Manitoba who were ordered to destroy livestock and received compensation under the Health of Animals Act. 

Agriculture and Agri-food Minister Heath MacDonald said the measure responds to concerns from livestock producers about the challenges of replenishing their herds during the same tax year in which they received the compensation.  

He said when unexpected animal health events occur, the government is committed to providing effective support to help producers recover and rebuild. 

“Canada’s producers are the backbone of our rural communities and are essential to our agri-food success story,” he said. “This extended tax deferral period would address the unique realities faced by producers as they rebuild their herds after animal health events. The Government of Canada remains committed to giving producers the support and stability they need to keep the sector strong and resilient.” 

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While section 80.3 of the Income Tax Act currently allows for a one-year income deferral, the proposed amendments would allow affected livestock producers to defer compensation over a schedule from 2026 to 2030, providing them with greater flexibility to manage their incomes and sustain their operations as they rebuild their herds. 

Producers who received compensation in 2025 or 2026 would have the option of including those amounts in income for tax purposes. 

• up to 100 per cent of the compensation deferred to the 2027 tax year, with at least 83 per cent included in income in 2027; 

• up to 17 per cent of the compensation deferred to the 2028 tax year, with at least 9 per cent included in income in 2028; 

• up to 8 per cent of the compensation deferred to the 2029 tax year, with at least 4 per cent included in income in 2029; and 

• up to 4 per cent of the compensation deferred to the 2030 tax year, with the remaining 4 per cent included in income in 2030. 

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alice.mcfarlane@pattisonmedai.com