Home Tax Farmers Affected by Drought Have Time to Replace Livestock

Farmers Affected by Drought Have Time to Replace Livestock

Farmers Affected by Drought Have Time to Replace Livestock

Farmers Affected by Drought Have Time to Replace Livestock

Drought is a natural calamity that affects agricultural activities globally. The scarcity of water makes it difficult for farmers to produce crops and care for livestock. This article focuses on the effects of drought on farmers and their livestock. It also provides detailed information on how farmers can replace livestock affected by drought.

Understanding Drought

Drought is a long-term lack of rain or water in an area that affects soil quality and crops. This phenomenon occurs naturally but is worsened by climate change and human activities. Drought can affect farmers by reducing crop yields leading to reduced income and food shortages. Livestock farmers are also severely affected because they rely on vegetation such as grass to feed their animals. Drought may deplete the vegetation, reduce livestock productivity, increase the cost of feed, and threaten the life of the animals.

The Impact of Drought on Farmers and Their Livestock

Drought has far-reaching effects on farmers and their livestock, both directly and indirectly. When a prolonged drought occurs, livestock farmers are forced to sell or cull their animals, leaving them with little or no stocks. This leads to reduced income, loss of assets, and increased poverty. According to the Department of Agriculture and Water Resources (DAWR) in Australia, prolonged drought conditions can cause a significant reduction in the number of breeding animals, and reduce the species production potential.

Moreover, drought increases the cost of livestock food, leading to decreased profits. Farmers have to buy expensive feeds, which reduces their ability to buy inputs for crop farming. Farmers are therefore forced to focus on subsistence farming rather than commercial production, leading to reduced yields and income.

The sudden changes in weather patterns during droughts also cause inbreeding, which reduces the genetic potential of the herd or flock. Inbreeding disrupts the genetics of the stock, leading to an undesirable combination of genes that bring qualities that deteriorate the species’ performance.

Drought also affects the animals’ health and productivity. The lack of water, food, and sunshine weakens the immune system of livestock, leading to disease outbreaks. Prolonged drought can also affect the fertility of animals, the milk production rate, and the time of conception. In addition, livestock may suffer from malnutrition, dehydration, and death, leading to reduced production of meat, milk, and hides.

Replacing Livestock Affected by Drought

Despite the long-term effects of drought on livestock production, there is hope for farmers. Research has shown that farmers can replace their livestock and start a fresh breed, but it takes time and resources. Farmers must focus on breeding and selecting the right animals that can withstand drought, pests, and diseases.

The type of animal to be replaced depends on the drought’s duration, location, and severity. Farmers need to determine if the replacement animals can survive the harsh weather conditions and feed efficiently. For example, cattle breeders in drought-prone areas may consider breeding Boran, Sahiwal, or Nguni cattle breeds, as they are adapted to dry conditions and feed on different vegetation types.

The following are some of the ways that farmers can replace livestock affected by drought.

1. Livestock Insurance – Farmers can consider insuring their livestock against drought. Some governments offer insurance policies that cover farmers’ loss of livestock due to drought. This type of insurance policy provides the farmer with financial aid to replace lost livestock; hence, farmers can maintain their stocks and avoid bankruptcy.

2. Restocking using savings – Farmers can save their profits during the rainy season and buy replacement stock during the drought. This approach requires discipline and determination to save enough funds to restock. If farmers do not have the savings, they can consider borrowing from financial institutions to buy replacement stock.

3. Embryo Transfer – Farmers can consider embryo transfer for their cows and heifers. This method is efficient in increasing the number of calves born, ensuring more animals can be available for replacement during drought.

4. Artificial Insemination – Farmers can also use artificial insemination to breed their animals. This method can help in increasing the stock’s genetic potential, producing resilient animals that have adapted to harsh weather conditions.

5. Collaboration with other farmers or traders – Farmers can partner with other farmers or traders to purchase replacement stock in bulk at a discount. This approach will help reduce the cost of purchasing replacement stock.

Conclusion

In conclusion, drought is a natural calamity that affects agricultural activities globally. Farmers are severely affected by drought as it reduces crop yields, leading to reduced income and food shortages. Livestock farmers are also affected by the reduced vegetation, increased cost of feed, and the threat of livestock’s life. However, farmers can replace their livestock affected by drought, but it takes time and resources. Farmers should focus on selecting the right breed of animals that can withstand drought, pests, and diseases and consider insuring their livestock against drought. Moreover, farmers should consider saving their profits during the rainy season, using embryo transfer or artificial insemination, and collaborating with other farmers or traders to buy replacement stock. Farmers should also seek financial aid from government institutions to purchase replacement stock to maintain their stocks and avoid bankruptcy.Farmers Affected by Drought Have Time to Replace Livestock

Drought is a natural calamity that affects agricultural activities globally. The scarcity of water makes it difficult for farmers to produce crops and care for livestock. This article focuses on the effects of drought on farmers and their livestock. It also provides detailed information on how farmers can replace livestock affected by drought.

Understanding Drought

Drought is a long-term lack of rain or water in an area that affects soil quality and crops. This phenomenon occurs naturally but is worsened by climate change and human activities. Drought can affect farmers by reducing crop yields leading to reduced income and food shortages. Livestock farmers are also severely affected because they rely on vegetation such as grass to feed their animals. Drought may deplete the vegetation, reduce livestock productivity, increase the cost of feed, and threaten the life of the animals.

The Impact of Drought on Farmers and Their Livestock

Drought has far-reaching effects on farmers and their livestock, both directly and indirectly. When a prolonged drought occurs, livestock farmers are forced to sell or cull their animals, leaving them with little or no stocks. This leads to reduced income, loss of assets, and increased poverty. According to the Department of Agriculture and Water Resources (DAWR) in Australia, prolonged drought conditions can cause a significant reduction in the number of breeding animals, and reduce the species production potential.

Moreover, drought increases the cost of livestock food, leading to decreased profits. Farmers have to buy expensive feeds, which reduces their ability to buy inputs for crop farming. Farmers are therefore forced to focus on subsistence farming rather than commercial production, leading to reduced yields and income.

The sudden changes in weather patterns during droughts also cause inbreeding, which reduces the genetic potential of the herd or flock. Inbreeding disrupts the genetics of the stock, leading to an undesirable combination of genes that bring qualities that deteriorate the species’ performance.

Drought also affects the animals’ health and productivity. The lack of water, food, and sunshine weakens the immune system of livestock, leading to disease outbreaks. Prolonged drought can also affect the fertility of animals, the milk production rate, and the time of conception. In addition, livestock may suffer from malnutrition, dehydration, and death, leading to reduced production of meat, milk, and hides.

Replacing Livestock Affected by Drought

Despite the long-term effects of drought on livestock production, there is hope for farmers. Research has shown that farmers can replace their livestock and start a fresh breed, but it takes time and resources. Farmers must focus on breeding and selecting the right animals that can withstand drought, pests, and diseases.

The type of animal to be replaced depends on the drought’s duration, location, and severity. Farmers need to determine if the replacement animals can survive the harsh weather conditions and feed efficiently. For example, cattle breeders in drought-prone areas may consider breeding Boran, Sahiwal, or Nguni cattle breeds, as they are adapted to dry conditions and feed on different vegetation types.

The following are some of the ways that farmers can replace livestock affected by drought.

1. Livestock Insurance – Farmers can consider insuring their livestock against drought. Some governments offer insurance policies that cover farmers’ loss of livestock due to drought. This type of insurance policy provides the farmer with financial aid to replace lost livestock; hence, farmers can maintain their stocks and avoid bankruptcy.

2. Restocking using savings – Farmers can save their profits during the rainy season and buy replacement stock during the drought. This approach requires discipline and determination to save enough funds to restock. If farmers do not have the savings, they can consider borrowing from financial institutions to buy replacement stock.

3. Embryo Transfer – Farmers can consider embryo transfer for their cows and heifers. This method is efficient in increasing the number of calves born, ensuring more animals can be available for replacement during drought.

4. Artificial Insemination – Farmers can also use artificial insemination to breed their animals. This method can help in increasing the stock’s genetic potential, producing resilient animals that have adapted to harsh weather conditions.

5. Collaboration with other farmers or traders – Farmers can partner with other farmers or traders to purchase replacement stock in bulk at a discount. This approach will help reduce the cost of purchasing replacement stock.

Conclusion

In conclusion, drought is a natural calamity that affects agricultural activities globally. Farmers are severely affected by drought as it reduces crop yields, leading to reduced income and food shortages. Livestock farmers are also affected by the reduced vegetation, increased cost of feed, and the threat of livestock’s life. However, farmers can replace their livestock affected by drought, but it takes time and resources. Farmers should focus on selecting the right breed of animals that can withstand drought, pests, and diseases and consider insuring their livestock against drought. Moreover, farmers should consider saving their profits during the rainy season, using embryo transfer or artificial insemination, and collaborating with other farmers or traders to buy replacement stock. Farmers should also seek financial aid from government institutions to purchase replacement stock to maintain their stocks and avoid bankruptcy.


According to the Internal Revenue Service, farmers and ranchers affected by the huge drought in the United States have an extension to replace livestock and defer tax on gains made through forced sales.  The crippling drought has affected 43 states, and currently stands as one of the worst droughts in U.S. history.

Many farmers and ranchers are forced to sell livestock because of serious droughts.  In order to conserve water, they need to limit their herd while still trying to make a profit.  In order to qualify for the deferment, the livestock usually needs replaced within four years, but the IRS has allowed an additional year.

The one-year extension and deferment applies to farmers who sold more livestock used for dairy, breeding, or draft purposes than usual because of the drought.  Farmers who raise livestock for slaughter or sport do not apply for the extension.

Qualified farmers need to maintain the farm within a county, parish, city or district in a location the National Drought Mitigation Center (NDMC) declare as having “exceptional, extreme or severe” drought conditions for a whole week between September 1, 2011 and August 31, 2012.

The IRS reports that farmers and ranchers whose replacement period was set to expire at the end of the current tax year (generally December 31, 2012) now have until the same date in 2013.  The extension mainly targets farmers that were affected by droughts in 2008 and are still affected by droughts since the normal extension is four years.  The IRS announces that it will allow further extensions if the severe drought continues.

More information about the relief can be found on www.irs.gov under Notice 2012-62.  Information about tax issues and reporting drought sales can be found under Publication 225, Farmer’s Tax Guide on the IRS’s website as well.

Source: Internal Revenue Service