Each September the IRS publishes a list of counties for which exceptional, extreme, or severe drought was reported during the preceding 12 months. If you reside in, or are adjacent to one of these counties, and you sold more livestock than you generally do because of the drought, you may be eligible to defer livestock sales into a future year.

Designated Counties

South Dakota:

Aurora, Beadle, Bennett, Bon Homme, Brookings, Brown, Brule, Buffalo, Campbell, Charles Mix, Clark, Clay, Codington, Corson, Custer, Davison, Day, Deuel, Dewey, Douglas, Edmunds, Fall River, Faulk, Grant, Gregory, Haakon, Hand, Hanson, Hutchinson, Jackson, Jerauld, Kingsbury, Lake, Lawrence, Lincoln, Lyman, McCook, McPherson, Marshall, Meade, Mellette, Miner, Minnehaha, Moody, Oglala Lakota, Pennington, Roberts, Sanborn, Spink, Stanley, Todd, Tripp, Turner, Union, Walworth, Yankton, and Ziebach.


Albany, Campbell, Carbon, Converse, Fremont, Goshen, Laramie, Lincoln, Niobrara, Park, Platte, Sublette, Sweetwater, Teton, Uinta, and Weston.

Essentially the entire state of South Dakota and Wyoming will qualify for the drought deferral because all counties are adjacent to a designated drought county.

Additional details – https://www.irs.gov/pub/irs-drop/n-23-67.pdf

More information on this topic will be included in the upcoming edition of the “KT Addition” newsletter. Please contact your KT Ag Tax Professional to see if this opportunity will apply to your tax situation.