Fourth round of compensation now available for Canadian dairy farmers
December 19, 2022 – Ottawa, Ontario – Agriculture and Agri-Food Canada
Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, announced that the fourth payment under the Dairy Direct Payment Program (DDPP) is now available to dairy producers.
Dairy farmers will receive compensation payments based on their milk quota. For example, the owner of an 80 head dairy farm will receive $38,000 in direct payment compensation. The compensation for this fourth round of payments totals up to $468 million.
To get their payment, producers must register through the Canadian Dairy Commission before March 31, 2023. Agriculture and Agri-Food Canada has mailed letters to all eligible dairy producers with instructions on the application process.
This fourth payment completes full and fair compensation to dairy producers for the impact of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The Government of Canada recently announced compensation of up to $1.2 billion over six years under the DDPP to account for the impacts of the Canada-United States-Mexico Agreement (CUSMA).
As of 2024, the owner of a farm with 80 milking cows may receive compensation through a direct payment of about $106,000 in six yearly instalments on a declining scale. These funds give producers the flexibility to invest according to their individual needs.
Through the 2022 Fall Economic Statement, the Government of Canada announced up to $1.7 billion in compensation to supply-managed sectors for the impacts of CUSMA. With this announcement, the Government delivers on its commitment to fully and fairly compensate producers and processors who have lost market share under CETA, CPTPP and CUSMA. The total compensation will reach up to $4.8 billion.
The Government of Canada firmly believes that Canada’s supply-managed sectors are the pillars of rural communities’ vitality. The system provides producers with the opportunity to receive fair returns on their labour and investments, while consumers benefit from a steady supply of high-quality products.
“We made a promise, and we kept it. Our government committed to fully and fairly compensate supply-managed sectors after the ratification of trade agreements. The payment at the beginning of 2023 completes the compensation of dairy producers for the CETA and CPTPP. As of next year, and until 2029, they will receive compensation for CUSMA. I also reiterate our government’s commitment not to concede any further market shares under supply management during future trade negotiations.”
- The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food
In 2022, there were 9,952 dairy farms in Canada and the dairy industry generated $7.39 billion in total net farm cash receipts in 2021.
Under the Dairy Direct Payment Program, eligible recipients are producers of cow’s milk with a valid dairy quota license registered with a provincial milk marketing board or agency as of October 31 of each year.
To date, the Government of Canada has committed over $3 billion to compensate and support supply-managed sectors impacted by CETA and CPTPP, which includes $1.75 billion through the Dairy Direct Payment Program.
Through the 2022 Fall Economic Statement, the Government announced up to $1.7 billion in compensation to supply-managed sectors for the impacts of CUSMA, as follows:
- Up to $1.2 billion to Canadian dairy producers under the Dairy Direct Payment Program.
- Up to $112 million to the Canadian poultry and egg producers under the Poultry and Egg On-Farm Investment Program.
- Up to $105 million to support investments in dairy, poultry and egg processing plants under the Supply Management Processing Investment Fund.
- Up to $300 million to the Canadian dairy sector through a new program to support innovation and investment into large-scale projects to add value to solids-non-fat, a by-product of milk processing.
Office of the Minister of Agriculture and Agri-Food
Agriculture and Agri-Food Canada
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