The federal government expanded the boundaries for a third time this week, but it turned out to be a complex process.

Very dry conditions over much of Saskatchewan resulted in a smaller hay crop, forcing producers to downsize their herds prior to winter.

The Federal Livestock Tax Deferral allows producers to defer paying taxes on the sold cattle until the following year.

Scott Horn has about 60 cattle on his farm in the Rural Municipality of Great Bend, about 40 kilometres northwest of Saskatoon. Great Bend was one of 14 additional RM’s included in the designated area this week.

“Our ranch is in the North Saskatchewan River Valley and I could literally skip a stone across the river to where other producers qualified,” says Horn, who sold about 20 animals last year.

“When you have that kind of an income bump, Revenue Canada generally doesn’t look at it anything other than an income spike. They don’t look at the (reasons) why.”

The federal government responded to farm organization requests and announced the first list of eligible areas in September. It was revised again in November before the final few RM’s were announced this week.

The Agricultural Producers Association of Saskatchewan (APAS) had requested that the entire province been designated as eligible, so no affected producers would be left out. About 75 percent of RM’s are in the designated area.

“We need a review of the technology and area boundaries used to determine the eligibility for the program,” says Tood Lewis, APAS president. “A final designation at the end of January, after the end of the tax year, does not allow producers to make informed business decisions.”

Similar concerns have been raised by agricultural groups in other provinces.