Government of Canada takes next step in compensating Canada’s dairy farmers
The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, announced today that Agriculture and Agri-Food Canada has mailed letters to all dairy producers that gives 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 $468 million in 2020-21, $469 million in 2021-22, and $468 million 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 $1.75 billion 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.
The Government of Canada is also moving forward with consultations with chicken, egg, turkey and hatchery egg sector representatives on the design of the $691-million, 10-year compensation programs, which were also announced by Minister Bibeau in November 2020. Responding to sector demands, these programs will help drive innovation and market development for farmers. Consultations are expected to conclude early this year, and program details will be announced as soon as possible.
Minister Bibeau made the announcement during roundtable discussions today with supply-managed farmers from the Quebec towns of Southwest Monteregie, Vaudreuil, Hudson, Rigaud, Magog, Brome and Granby alongside Member of Parliament for Châteauguay—Lacolle, Brenda Shanahan, Member of Parliament for Vaudreuil—Soulanges, Peter Schiefke, and Member of Parliament for Brome-Missisquoi, Lyne Bessette. Discussions also focused on challenges supply-managed farmers are facing, intergenerational transfers, sustainability and the environment.
The Government of Canada recognizes that 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.
“Dairy production is a cornerstone of our rural regions. By sending the letters about the second compensation payment, our Government has taken an important step in providing full and fair compensation to dairy farmers. We will continue to ensure that our supply-managed producers have the tools they need to succeed for generations to come.”
- The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food
“The discussions that have taken place today are important for the continuity and sustainability of the agricultural sector in our region. The demands and concerns of our supply-managed farmers have been heard, and we will continue to do what is necessary to help them meet the challenges they face.”
- Member of Parliament for Châteauguay–Lacolle, Brenda Shanahan
“The contribution of supply-managed milk, poultry and egg producers to our country’s economic prosperity is beyond question. In these sometimes-uncertain times, it is reassuring for families in Quebec and Canada to know that they can count on these workers to deliver high-quality products and help increase our food autonomy.”
- Member of Parliament for Vaudreuil–Soulanges, Peter Schiefke
“Supply-managed farmers are essential to the vitality of rural regions. The producers of Brome–Missisquoi expect us to support them, particularly with full compensation as announced in November. We are listening to them and we continue to work closely with them to provide them the best possible conditions for their success, as demonstrated by our roundtable today.”
- Member of Parliament for Brome–Missisquoi, Lyne Bessette
In August 2019, Minister Bibeau announced that $1.75 billion would be provided 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 $345 million. The Government has set a schedule to deliver the remaining $1.405 billion through direct payments to farmers over a timeline of only three years.
There are 4,800 chicken, egg, broiler hatching egg, and turkey farmers across Canada.
Furthermore, the Government of Canada 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.
Office of the Minister of Agriculture and Agri-Food
Agriculture and Agri-Food Canada
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