ALBUQUERQUE, N.M. (AP) – Farmers and ranchers in New Mexico are eligible for an additional year to defer tax on any gains from the forced sale of livestock due to continued drought.
The Internal Revenue Service says drought-stricken farmers and ranchers in certain regions spanning 46 states are eligible for the relief. Under the program, they’ll also have four years instead of two to replace their animals. The federal agency says it’s possible the replacement period could be further extended if the dry conditions continue.
The U.S. Agriculture Department’s statistics service reported Monday that some ranchers in the state have been hauling water to livestock due to the lack of water and some are weaning and selling livestock in preparation for a winter with limited feed.
The latest federal map shows moderate to extreme drought covering nearly all of New Mexico.