Suppose a producer normally sells 20 calves in the fall and holds 10 calves until the follow-ing spring, but this year sells all 30 calves in the fall. If the 30 calves generate $12,000 in sale value, then the amount of income that can be postponed until next year is ($12,000 ' 30 head) x 10 head = $4,000

Gains from sales of livestock held for breeding purposes can also be postponed. If cows, bulls or replacement heifers are sold due to drought, these sales can be treated as an involuntary conver-sion. The gains from sales of breeding livestock can be post-poned, provided replacement stock of similar kind is purchased within two years from non-family members, and the cost of the re-placement stock must exceed the sale value of the breeding cattle sold due to drought. Only live-stock sold in excess of the amount normally sold can be con-sidered involuntary conversions. For example, a producer who normally culls five cows annually but sells 15 cows in 1999 due to the drought can elect to postpone the gain on 10 of the cows. Refer to the Farmer's Tax Guide, IRS Publication 225, for more details on how to postpone gains due to weather-related sales. The publi-cation is available on-line at http://www.irs.ustreas.gov/ or call the IRS at 800-829-3676. Use federal programs to help with drought relief. Now that Tennes-see has been designated an agri-culture disaster state, two federal programs are available that may benefit cow/calf producers. Both of these programs are adminis-tered by USDAs Farm Service Agency OFSA. Emergency con-servation program: During drought, the emergency conserva-tion program can provide cost-share funds for emergency water assistance to livestock. Cost share assistance up to 64 percent can be applied for, with a limit of $20,000/farm at the county FSA office. The state office can ap-prove up to $62,500/farm. Requests under $20,000 are evalu-ated and approved by county FSA committees.