Farmers, Ranchers in 49 States to Get IRS Tax Relief Due to Drought

More than 65 percent of the Western United States has experienced drought this year, and 14 percent ‘extreme or exceptional drought.’

A dry, cracked lake bed in drought-stricken Lake Mead in Boulder City, Nev., on Sept. 15, 2022. Frederic J. Brown/AFP via Getty Images

American farmers and ranchers who have sold or exchanged livestock due to drought conditions are eligible for tax relief, the IRS said in a Sept. 22 statement.

Generally, livestock sold due to drought must be replaced within four years. Under the latest extension, farmers and ranchers who had sold livestock due to drought, with replacement periods scheduled to expire by the end of 2025, will now have until the end of the 2026 tax year to make replacements.