Senator Heidi Heitkamp United States Senator for North Dakota

Resources to Manage Drought Conditions

Across central and western North Dakota, I’ve heard from ranchers who tell me this May was the worst drought they’ve ever seen – and that the recent small sprinkle of rain combined with strong winds didn’t make a dent in helping their pastures to recover. These resources serve as a one-stop-shop for farmers and ranchers who have been hit hard by drought and want to monitor conditions and learn about tools to mitigate damage and help provide relief.

North Dakota Department of Agriculture Hotline: 701-425-8454

This phone line will be answered Monday - Friday, 8:00 a.m. to 5:00 p.m. CT. Messages can be left on nights and weekends. Ranchers who need hay or those with hay or pasture to rent or sell can call the hotline. Folks who are available to move hay can also contact the hotline.

For mental health resources, North Dakotans are encouraged to call 2-1-1. This hotline provides confidential listening and support in addition to information and referral. Learn more here. 

Drought Management
Production Management
Frequently Asked Questions about Notice 1033(e) Tax Exemption
Frequently Asked Questions about the Conservation Reserve Program

  • Crop Production
    Resources include weed control strategies, herbicide applications, restrictions, and concerns, and more.
  • Livestock Production
    Resources include how to protect cattle from heat stress, management strategies for beef cattle producers, and more.
  • Feeds and Feeding
    Comprehensive resources on alternative strategies to feed beef and dairy calves during drought.
  • Forages and Grazing
    Information on alternative forage options and crops, options for dealing with forage shortage and more.
  • Livestock Poisoning
    Resources on common livestock poisoning during drought and how to respond.
  • USDA Livestock Forage Disaster Program
    Fact sheet on eligible counties, livestock, and producers for LFP, as well as payments and payment limitations, and how to enroll.
  • USDA Noninsured Crop Disaster Assistance Program (NAP)
    Disaster assistance program that provides financial assistance to producers of noninsurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters.

Folks having to sell off cattle due to drought conditions may be eligible for an income tax exemption through Notice 1033(e) of the tax code. Please consult your local tax professional when making financial decisions regarding this notice.

What requirements must I meet as a producer?
Your principle business must be farming.

Is the 1033(e) election limited to cash-basis taxpayers?
No, a Section 1033(e) exemption is available to all taxpayers whose principle business is farming.

How do I make the election?
The election to defer the payment of capital gains on the forced sale of livestock is made by demonstrating the involuntary conversion of those animals. This can be done by attaching the following information to the tax return for the year in which the sale of the animals occurred:

  • A statement that the producer is electing to postpone gain under Code Section 1033(e).
  • Evidence of the existence of the drought conditions that forced the producer sell their livestock, and if applicable, the date of federal disaster designation for that area.
  • The number and type of livestock that were sold.
  • The number and type of livestock that would have been sold should the producer have followed their normal business practices.
  • A computation, consistent with IRS requirements, of the income that is being postponed. 

How long do I have to replace the animals before I will be forced to pay capital gains?
Two different time frames can apply dependent upon the disaster declaration status of a producer's county.

  • Two years if the area is not declared eligible for federal assistance.
  • Four years if the area is declared eligible for federal assistance.

Do I have to reside in a county that has been designated as eligible to receive federal assistance in order to qualify for a 1033(e) election?
No. Although the reinvestment time frame is limited to two years, producers whose county did not receive a federal disaster designation can still qualify for a 1033(e) election.

How is the 'first drought-free year' determined?
Under IRS Notice 2006-82, the replacement period was altered to extend until the end of the first taxable year in which the producers area, meaning their country or any country contiguous, does not experience a severe, extreme, or exceptional drought for any weekly period between September 1 and the following August 31. 

Furthermore, determinations regarding the severity of the drought will be based upon the U.S. Drought Monitor (i.e. D2: sever, D3: extreme, D4: exceptional). 

How do I know which of my CRP acres are eligible or ineligible for emergency haying and grazing? 
Click here for a map of counties approved for CRP emergency haying and grazing. Not all CRP practices are eligible for haying and grazing. Below is an explanation of which CRP practices are eligible and those that are not. Please consult with your local FSA office on your individual plan before making any management decisions.

Eligible Acres
Acreage devoted to the following practices is eligible for managed or emergency haying and grazing: CP1, CP2, CP4B, CP4D, CP10, CP18B, CP18C, and CP38 in certain states.

Ineligible Acres
Acreage ineligible for managed or emergency haying and grazing includes acreage devoted to:

  • Useful life easements.
  • Land within 120 feet of a stream or other permanent water body.
  • The following practices: CP3, CP3A, CP5A, CP8A,CP9, CP11, CP12, CP15A, CP15B, CP17A, CP21, CP22, CP23, CP24, CP25, CP27, CP28, CP29, CP30, CP31, CP32, CP33, CP35A-I, CP36, CP37, CP38 in certain states, CP39, CP40, CP41, and CP42.