Third round of compensation available for Canadian dairy farmers
The owner of a farm with 80 dairy cows will be awarded compensation in the form of a direct payment of approximately C$38,000 (US$29,600) each year.
Agriculture and Agri-Food Canada has mailed letters to all eligible dairy producers with directions on how to access the payment. Based on their milk quota, dairy farmers will receive compensation payments totaling up to C$469m (US$366m) for this fiscal year. To receive their payment, producers must register through the Canadian Dairy Commission prior to March 31, 2022. Another C$468m (US$365m) will be available in 2022-2023.
The Government of Canada said it has committed C$1.75bn (US$1.36bn) to dairy producers for 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). Payments are being made on an accelerated schedule of four years instead of eight, with all payments set to be made by 2023.
To help processors of all supply-managed agricultural products adapt to CETA and CPTPP, Budget 2021 proposed a further C$292.5m (US$228m) for a Processor Investment Fund to support private investment in processing plants. Further program details are expected to be available in the coming months.
Within the next year, the Government of Canada said it is committed to working with supply-managed sectors to determine full and fair compensation for the impacts of the Canada-United States-Mexico Agreement (CUSMA).
Under the Dairy Direct Payment Program, dairy farmers will receive up to C$1.75bn in direct payments over the course of four years. Payments are delivered by the Canadian Dairy Commission (CDC). Up to C$345m (US$269m) and C$468m ($365m) in direct payments was made available in 2019-20 and 2020-21, respectively.
