Farmers, if you have deferred the gain on livestock sales because of the recent drought conditions, the IRS has extended the replacement period due to the continuing drought. Farmers and ranchers, whose sale replacement period was set to expire on December 31, 2012, will get another year. 
Livestock Deferment Extended
                If a farmer has to sell more livestock than usual due to drought conditions, they can elect to defer reporting the gain on the extra sales for up to 4 years, if the extra livestock sold is replaced within those 4 years. The livestock must be used for breeding, draft or dairy purposes. If they are poultry or animals raised for slaughter or sporting purposes, they are not eligible for the deferment.
                 However, due to the continued drought, the IRS has extended the replacement period. Farmers and ranchers, whose farm is in a county, parish, city or district which has been listed as suffering drought conditions by the National Drought Mitigation Center from September 1, 2011 to August 31, 2012, are eligible for the extra year. This covers all or part of 43 states. A farm can also qualify if they are next to a county that does qualify. Info about drought sales can be found in Publication 225.