Government of Canada continues compensation for Canada's dairy farmers

By Jim Cornall contact

- Last updated on GMT

To receive funds, producers must register for the program through the Canadian Dairy Commission before March 31, 2021. Pic: Getty Images/Rowena Kong
To receive funds, producers must register for the program through the Canadian Dairy Commission before March 31, 2021. Pic: Getty Images/Rowena Kong

Related tags: USMCA, Dairy, Canada

The Canadian government has announced Agriculture and Agri-Food Canada has mailed letters to all dairy producers giving them directions on how to access the second payment under the Dairy Direct Payment Program.

Dairy farmers will receive, on the basis of their milk quota, cash payments of C$468m (US$370m) in 2020-21, C$469m (US$372m) in 2021-22, and C$468m in 2022-23. In order to receive their payments, producers must register for the program through the Canadian Dairy Commission prior to March 31, 2021.

This next step builds on the Minister's announcement on November 28, 2020 to deliver the promised full and fair compensation valued at C$1.75bn (US$1.4bn) to dairy producers for the market access concessions made under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) over the course of four years instead of eight.

Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, made the announcement during roundtable discussions with supply-managed farmers in Quebec. Discussions also focused on challenges supply-managed farmers are facing, intergenerational transfers, sustainability and the environment.

The Government of Canada said it recognizes Canada's supply managed farmers are drivers of the Canadian agriculture sector and the economy. Canadian farmers continue to deliver the best quality products to our grocery store shelves and kitchen tables, while continuing to face the challenges of the COVID-19 pandemic. The strength of the sector is essential to the vitality of our farms and rural regions across the country.

In August 2019, Minister Bibeau announced the C$1.75bn amount to compensate Canadian dairy farmers over eight years. Between December 2019 and January 2020, more than 10,000 dairy farmers received a cash payment of C$345m (US$273m). The Government has set a schedule to deliver the remaining amount through direct payments to farmers over a three-year period.

The government said it also remains committed to engaging the sector on full and fair compensation for the Canada-United States-Mexico Agreement (CUSMA), and to processors of supply managed products.

Related topics: Markets, Fresh Milk, Pricing Pressures

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