Drought Sale

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DEFINITION of 'Drought Sale'

When a farmer is forced to sell more animals than in a typical year because of poor weather conditions. The profits from the livestock sales can be deferred to the following year, even if the proceeds exceed the losses.

INVESTOPEDIA EXPLAINS 'Drought Sale'

The tax deferral is not exclusive to a drought situation. Losses due to unexpected epidemic (disease outbreak) ravaging the livestock or other uncharacteristically massive losses (floods, fires, etc).

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