With dry weather already limiting forage production in parts of the Northern Plains and elsewhere, North Dakota State University Extension economist Tom Petry notes that some producers might need to liquidate some breeding cattle or sell calves earlier than planned. He reminds producers who are forced to sell livestock due to drought conditions that they can receive special consideration for federal income tax reporting purposes. The IRS offers two options in these cases, Petry says. One allows postponement for reporting income from forced sales of breeding cattle or calves sold earlier than usual. Ranchers, for example, who normally would background their calves through the winter might be forced to sell them at weaning. They could in that case postpone reporting the income for tax purposes until next year. The other option is to treat the sale as an involuntary conversion. Producers can choose to postpone reporting the capital gain from forced sales as long as similar animals are repurchased in the future.