A bill to amend the Internal Revenue Code of 1986 to provide that the special rule for proceeds from livestock sold on account of drought apply to livestock used for draft, breeding, dairy or sporting purposes.

Amends the Internal Revenue Code to apply to livestock used for draft, breeding, dairy, or sporting purposes a special rule that permits a farmer or rancher who sells livestock solely because of drought conditions to elect to defer until the following year the taxation of the resulting income.