Farmers, Ranchers Affected by Drought Have More Time to Replace Livestock and Defer Tax

Oct 11, 2023

Farmers and ranchers who were forced to sell livestock due to drought may get extra time to replace the livestock and defer Idaho tax on any gains from the forced sales. This deferral follows the guidelines set by the IRS.

The one-year extension gives eligible farmers and ranchers until the end of the tax year after the first drought-free year to replace the sold livestock.
The farmer or rancher must be in an applicable region. An applicable region is a county designated as eligible for federal assistance, as well as counties contiguous to that county.
The county included in the applicable region must be listed as suffering exceptional, extreme, or severe drought conditions during any week between September 1, 2022, and August 31, 2023, by the National Drought Mitigation Center. For Idaho, this includes the counties of Adams, Bannock, Bear Lake, Benewah, Blaine, Bonner, Bonneville, Boundary, Butte, Camas, Caribou, Cassia, Clearwater, Custer, Franklin, Fremont, Gooding, Idaho, Kootenai, Latah, Lemhi, Lewis, Lincoln, Minidoka, Nez Perce, Oneida, Owyhee, Power, Shoshone, Teton, Twin Falls, Valley, and Washington. Find the complete list of applicable regions in Notice 2023-67 on IRS.gov.
The relief applies to farmers affected by drought that happened between September 1, 2022, and August 31, 2023.
This relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy, or breeding purposes. Sales of other livestock — such as those raised for slaughter or held for sporting purposes — or poultry aren’t eligible.

Source : idaho.gov

Video: How Millions of Dairy Cows Are Milked Daily for Cheese & Milk – Inside Modern Dairy Farming

Step into the world of dairy farming, where technology and tradition come together to produce premium milk and cheese. In modern dairy farming, cows are raised in climate-controlled barns, monitored by smart sensors that track health and milk quality. Automated milking machines and robotic cleaners ensure hygiene and efficiency at every stage of dairy farming. Once collected, the fresh milk is transported to advanced facilities, where the dairy farming process continues — pasteurization, fermentation, and cheese making powered by precision equipment. From lush pastures to sterile factories, dairy farming represents a revolution in how the world’s finest dairy products are made — sustainable, efficient, and delicious.