Ontario is one of three provinces with designated regions getting federal tax relief for livestock following this summer's drought.
The relief allow producers in those prescribed regions to defer a part of their 2016 sale proceeds of breeding livestock until next year to help replenish their herds.
Some farmers were forced to sell off most, or in some cases all, of their herds as ponds, streams and wells dried up.
Minister of Agriculture and Agri-Food Lawrence MacAulay says the government understands the impact extreme weather has on farm operations.
He adds the tax relief will allow producers to make better herd-management decisions for next year.
Producers in the selected regions of Ontario, Quebec and Alberta can request the tax deferral when they file their income tax returns.
