Drought Sale

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Drought Sale

In farming and ranching, the sale of more livestock than is usual because of some unexpected incident out of the control of the farmer or rancher. That is, if there is a drought or disease that requires one to sell more livestock than one otherwise would, this is called a drought sale. Taxes on the profits from drought sales may be deferred to another year so that the tax code does not punish farmers and ranchers in difficult times.